What Is Payment Transaction Batching?
Payment transaction batching is the process of grouping authorised card payments and sending them to the acquiring bank for settlement. Merchants usually submit these batches at the end of each business day. Batching may be done manually by the merchant or automatically through a payment-processing platform. If an authorised transaction is not included, the issuer will eventually release the held amount back to the cardholder’s available credit. Some transactions can be submitted without prior authorisation. This may apply to payments below a merchant’s floor limit or cases where a merchant attempts to complete a payment after an authorisation failure, such as extra charges from an extended hotel stay or car rental.
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