Batch
The group of transactions sent to your processor for settlement at the end of a business day. Must be closed within 24 hours to avoid interchange downgrades.
A batch is the collection of authorized transactions that a merchant sends to their acquiring bank for settlement at one time, typically once per day. Most terminals are configured to auto-batch at a set time (usually overnight), but some merchants need to close manually.
The 24-hour rule is important: Visa and Mastercard require transactions to be settled within 24 hours of authorization to qualify for the standard card-present interchange category. Batching late causes those transactions to downgrade to a higher-cost category.
Merchants who take tips (restaurants, salons, bars) need to manually enter tip amounts before batching, since the authorized amount and settled amount differ. Auto-batching without tip adjustment creates reconciliation problems and incorrect customer charges.
Batch fees are sometimes charged per batch submission rather than per transaction. For merchants who batch multiple times per day, this adds up. Single daily batching is standard for most merchants.
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