What is batch processing in payments?

In short

Batch processing is the handling of payments in groups at set times, instead of one by one as they happen. In card acceptance, batch processing is how captured transactions are sent to the acquirer and the card scheme for clearing, usually in a file that closes at a daily cut-off time.

Also called
Batch settlement, Batch clearing, End-of-day batch
Family
Accepting payments
Facts checked

How batch processing works for cards

Authorisation is real-time and individual. Capture is not: captured payments collect in an open batch on the terminal or the gateway through the day.

At the cut-off the batch is closed and submitted. The acquirer builds clearing records from it and sends them to the scheme, which passes them to the issuers, and settlement follows on the scheme's cycle.

Some debit networks work differently and use a single message that both authorises and clears. Most credit and e-commerce traffic uses the two-step model.

Where else payments run in batches

  • Bank transfers and direct debits cleared in cycles
  • Payouts from an acquirer or a marketplace to its merchants
  • Settlement and reconciliation files from schemes and banks
  • Recurring billing runs

Why batch processing matters

The cut-off decides the payout date: a payment captured a minute late settles a day later. A failed batch delays a whole day's funds, so batches are monitored and can be resubmitted.

Resubmission has to be safe. Each record needs a stable identifier, so that sending a batch twice does not charge customers twice, and batch totals are reconciled against the ledger.

Batch or real-time processing?

Real-time processing
Each payment is cleared and settled on its own within seconds, at any hour, as instant payment schemes do. No cut-off applies.
Authorisation
Always real-time for cards. The batch concerns what happens after approval.

Where Batch processing shows up in a platform

Modules that do the work

Platforms that need it

Every term

Start your project

Tell us the idea. We'll show you the platform.

One call is enough to map your product to the modules that already exist.

  • Response in under one business day
  • NDA on request
  • No obligation
How can we help?