Is Batch Credit Card Processing Right for You?

credit card on laptop

As a merchant, it always feels great when you make a sale. But what doesn’t feel as great is having to spend your energy manually uploading those transactions. If you wish there was a more efficient way to handle this aspect of your business, keep reading to learn why batch credit card processing may be exactly what you need.

How Does Batch Credit Card Processing Work?

Before we dive into the specifics of batch processing, it’s worth sharing a refresher on how standard processing works. When a customer is ready to pay, they swipe their card, insert it in an EMV terminal or type their card details onto your website. Then you authorize and accept it in real-time.

With batch credit card processing, the experience your customer has is exactly the same, but the backend process is a little different. Instead of accepting payments in real-time, transactions are authorized and then temporarily placed on hold. Each time this happens, a transaction code is stored in a master file. At the end of the day, you send the single file with the transaction codes to your processing company.

Once the file is received, each of the transactions will be processed and approved. This makes handling large volumes of sales more convenient, keeping the manual work at a minimum.

But, more importantly, batch processing can save you money. Instead of paying ongoing fees each time you process an individual sale, you pay a one-time network connection fee at the end of the day. While it’s important to crunch the numbers before making any changes, batch processing typically provides savings to most merchants with a significant volume of transactions.

Batch processing is also a secure way to handle transactions. When combined with other best security practices, you can be confident that all sensitive data will remain protected.

Since batch transactions aren’t officially processed and approved until they’re all submitted at the end of the day, it’s possible to miss a batch submission. Luckily, most processors allow you between five and seven days to submit the transactions. Then, if that generous window is somehow missed, the authorization is removed from the cardholders’ accounts.

The Bottom Line

Because batch credit card processing is a common practice, there are no shortage of processors that provide it. So if you’re unhappy with your current processor for any reason or need a processor for a new business, it’s worth comparing different providers. Doing so will ensure you get the best features and rates available.

We have two great resources to help your search. You can read our credit card processing 101 guide to learn all the most important factors affecting this decision. Our Top 5 Credit Card Processors also provide an easy way to compare the industry’s leaders.

Posted on Wednesday, August 2nd, 2017