Batch Processing

Batch processing is a method used in electronic payment systems to handle large groups of transactions collectively at designated times, typically after the close of business each day. This approach differs from real-time processing, where transactions are processed individually and immediately after authorization. By accumulating transactions throughout the business day and processing them as a single batch, merchants can streamline their operations and reduce the workload on their payment processing systems.

One of the main advantages of batch processing is the potential reduction in processing fees. Since transactions are processed in large numbers at once, payment processors often charge lower fees for batch processing compared to individual transaction fees. This can lead to significant cost savings for merchants, especially those with high volumes of transactions. Additionally, batch processing allows for more organized accounting and reconciliation practices, as all transactions from a particular batch are settled at the same time, making it easier to track and manage financial data. This method is highly efficient for businesses looking to optimize their transaction processing procedures and reduce operational costs.