Also called: Auto-Close, Batch Close, Close Batch, Manual Close, Submission, Suspended Batch
What batch settlement is
A batch is a group of authorized card transactions that has not yet been settled. Closing the batch submits those transactions together to your processor. Until that happens, the transactions are still open, even if your customer received an approval at checkout.
Batch settlement moves the transaction data through processing and clearing so funds can be transferred to your business. The processor and acquirer set the batch schedule and cutoff. Your terminal or point-of-sale system may close the batch automatically, or you may need to close it during end-of-day cash-out.
A sale is not on its way to your bank just because the terminal approved it. The batch still has to close.
How the batch affects your sales
Your cutoff determines which batch includes a sale. For example, with an illustrative 9 p.m. cutoff, a payment authorized at 8:55 p.m. goes into that batch, while one authorized at 9:30 p.m. goes into the next. That changes the processing date and the pattern of deposits, not whether the original payment was approved.
Processors set their own rules for batches left open. Some close them automatically, while others let transactions expire. Open-batch limits in the research range from 48 hours to 6 days. An unsubmitted sale can leave you waiting for money you expected to receive.
How a cutoff shifts a sale
| Illustrative cutoff | 9 p.m. |
|---|---|
| Sale at 8:55 p.m. | Current batch |
| Sale at 9:30 p.m. | Next batch |
This is an illustrative example. Your processor's cutoff determines which batch includes a transaction.
What it means for your costs and cash flow
Batch settlement is not a separate card rate, but your contract can include a batch fee. The research gives no standard fee amount. If you see a daily batch charge or an add-on fee, compare it with your contract and the number of batches you actually submit. If the contract charges per batch, sending the day's transactions in one batch avoids unnecessary extra submissions.
Funding timing also depends on your settlement setup. With gross settlement, the full batch amount is deposited and processing fees are withdrawn on the first day of the following month. With net settlement, processing fees are deducted before the deposit. Without a settlement hold, funds should arrive within 1 to 2 business days after settlement.
Where it appears on your statement
Look for a batch fee, daily charge, or processing add-on, then compare the amount with your contract and batch activity. Match the batch total and settlement date to your deposit record. A gross deposit should match the batch amount before later fee withdrawals; a net deposit should be lower by the fees deducted. Reconciling batches instead of comparing deposits with gross sales alone helps explain the difference.
What you can actually change
- Confirm the cutoff. Find the batch-close time in your point-of-sale settings or processing instructions. Check whether it follows a local time zone and whether after-hours sales roll into the next batch.
- Review open batches. At close, check for transactions still waiting to be submitted. Resolve them promptly because processor policies can close or expire open batches after 48 hours to 6 days.
- Compare fees and deposits. Match batch totals and settlement dates to your bank deposits, and compare any batch charge with your contract. Confirm whether your deposits are gross or net of processing fees.
Frequently asked questions
What happens if I forget to close a batch?
The transactions remain open until they are submitted or handled under your processor's open-batch policy. Some processors close outstanding batches automatically; others let transactions expire. Open-batch policies in the research range from 48 hours to 6 days, so check for unsubmitted sales during end-of-day close.
Does batch settlement mean the money is in my bank?
No. Closing and submitting a batch starts the settlement process, but funding follows later. Without a settlement hold, funds should arrive within 1 to 2 business days after settlement. Your deposit can also be net of processing fees, depending on your settlement setup.
Should I close my batch manually or automatically?
Either method can submit the day's transactions. Automatic closing reduces the chance that an open batch gets overlooked, while manual closing gives you a defined end-of-day step. Confirm the cutoff and verify that the batch total appears in your settlement records.
What is a batch fee?
A batch fee is a processing charge associated with submitting a batch. There is no standard amount in the research. Look for a batch fee, daily charge, or processing add-on on your bill, then compare the charge with your contract and the number of batches submitted.