Batch processing in a merchant account refers to the process of sending multiple credit card transactions for processing at the same time. Often, businesses will start do bath processing at the end of the day to gather all the day’s sales together first. This type of processing is different from real-time processing because it is purposely delayed. This delay, however, can be beneficial to merchants for a variety of reasons. The process can also be automated to take place a specific intervals of the merchant’s choosing, or it can be completed manually by the merchant.
Merchants can receive a range of benefits from using batch processing instead of real-time processing. First, batch processing can provide a lower risk of credit card fraud by initiating a single transaction rather than multiple transactions throughout the day. This provides better security to customers without raising the cost of security options. This can be very beneficial for smaller merchants who are watching what they spend.
Another huge benefit to the merchant is the fees that are paid during processing. While individual credit card processing fees are very small, they can add up when you are accepting multiple transactions throughout the day. Merchants who use batch processing once a day can significantly reduce the amount of fees they incur for their credit card transactions, keeping more money in the business instead of paying it out for fees.
For both small and large businesses, batch processing also provides a way to streamline the business. Batch processing can help merchants find specific transactions better than if transactions are processed individually. This is convenient for merchants who may have to deal with a product return or some other credit card issue with the consumer. Merchants can also streamline the process with batch processing by not having to purchase additional equipment like some other merchants who want individual processing. Many merchant account services also offer a range of incentives to their customers who choose batch processing, such as additional support, lower fees and a range of easy authorization services to make each batch processed quick and convenient for the merchant.