What is the batch point in a credit card transaction

Question

Thus, in retail stores where credit cards are stitched, cars are usually packed at the end of the day. This is when this party takes place that the card is actually being charged. Why is this? Why is the commission not immediately charged? One of the reasons I could see, maybe back in the days of dial-up access, is that you would allow all CC transactions to accumulate until the end of the day, and then you would charge all the CC information that you collected at once during the day .

But these are not the days when a telephone is dialed, and what does all this mean?

In addition, looking at the specifications for a particular payment gateway, I see, among other things, the types of transactions for "Sale" and "CaptureAll" (which, I believe, does the same as finalizing the batch). If a “Sale” package should be sent for each CC, then why not just charge it then? Or why not make a “Capture” after each “Sale”?

Answer 1

AUTH and CAPTURE are two important payment card processing functions.

As a merchant, you can process transactions like:

• AUTH only
• AUTH then CAPTURE
• AUTH and CAPTURE.

Only AUTH simply logs in to verify that the card or fuel is authorized correctly. This transaction will never be allowed.

AUTH, then CAPTURE means transaction AUTH (in real time), followed by a pending transaction CAPTURE for calculation. These capture transactions are hosted .

AUTH and CAPTURE are authorization and settlement in one transaction and in real time.

In the world of e-commerce merchants, AUTH is usually chosen, then CAPTURE due to the following reasons:

• Check fraud after successful AUTH, but before shipping products
• Delay in delivery due to unavailability
• Partial delivery to send multiple products

In the brick and mortar world, traders use a hybrid approach. The acquirer typically charges a high commission for AUTH and CAPTURE compared to AUTH, then CAPTURE.

Answer 2

One thing that no one has mentioned so far is the VOID, which is an “operational rescuer” for many sellers who work with less tech than many of us can program or deploy here.

VOIDs will not be possible if credit card transactions are not settled by parties at the end of the day (in many systems, such as Authorize.net, you can specify the time of day at which your parties will be finalized).

A VOID allows a merchant to mark a transaction that will not be installed at the end of the day in batch mode - many merchants do this if they are out of stock or even (yes, I came across this in the real world) if their online processing is so poorly designed that they process 2 transactions if the buyer double-clicks the final card. Emptiness makes transactions “as if it had never been,” but this must be done before batch settlement - after the package has been settled, you would have to give a credit to the card.

If you think about all the countless demands on how we are used to processing credit card transactions, this would be a real nightmare for many merchants if we suddenly ended up executing batches of transactions once a day.

Answer 3

In the United States, at least this is partly because money is transferred through ACH , and it is more efficient to calculate which banks should, in which banks in large, overnight batches, than for individual transactions. Although authorizations are often real-time, they do not have to be, and it is still a "stand-alone", batch system at its core. It was designed at a time when online was not possible, and that is how it works.

Technically, you can close the package after each transaction, but each time you pay a commission for this, because the calculation takes the actual work, and not how the network was created for use. And you still will not receive money until the next business day in the near future due to how ACH works.

This contrasts with EFTPOS (online debit card transaction in which you enter your PIN code on the terminal), which includes various technologies, different networks and immediate transfer of funds.

In the USA, as a rule, for debit cards you can also brand a credit card network, such as Visa or MasterCard. When you scroll through these cards and enter the PIN code, it goes through the EFTPOS network (Interlink, Star, Pulse - you saw these names on your cards before, but probably didn’t think about it). This is usually beneficial for merchants, because fees are lower, and the issuing bank is usually responsible for fraud (all this happens online in real time, and the user is authenticated using a PIN code). When you hold these cards and don’t enter your PIN code (sometimes signing a receipt), then it goes through the credit card network - again, a completely different network - and is part of the night party. The merchant usually pays a higher fee, and if used fraudulently, the seller usually ends the account. (The buyer almost always passes it to the seller). If you ever wondered why Walmart or your grocery store by default downloads a PIN code and forces you to jump over hoops to find the Credit function, therefore, debit is cheaper for them. And if you ever wondered why an e-commerce store is causing you trouble when your billing address is incorrect, why? If you dispute a transaction as fraudulent, it is those who pay the bill and then do not sweat the bank.

Answer 4

I am not sure if this is the right forum, but I will take it by blow.

As for batch processing, you are right that this is an outdated problem when there are dial ups. Some vendors have not yet converted, and not everyone pays for a full Internet connection, especially in remote places. Thus, credit card scrolling machines still allow this charging option. This is somewhat more risky for American merchants who use it, because most US credit cards are not smart cards that test themselves. I'm not sure that I would say that “most retail stores” do it this way if you are not in the USA.

As for the two-step process: Not all credit card transactions immediately charge a fee. According to the rules of a credit card, a supplier with physical products cannot charge until the window has been sent. Thus, many sellers will authorize to check a credit card and reserve funds. When the goods are dispatched, they will use the capture transaction to pay for the same credit card without the need for a credit card.

There are many good resources about the process.

Additional Information

Additional Information