Batch Fee Definition

Merchant Account Batch Fee Explained:

What is a Batch Fee? A “batch” is the total dollar amount of credit card sales charged in a single business day that will be deposited into a business owner’s checking account. Instead of business owners getting a deposit for every credit card sale, the sales are “batched” together into one overall deposit. Batch amounts are typically transferred and deposited within 48 hours. Generally, merchants must settle batches manually but some credit card systems can automatically settle daily batches at preset intervals. Typically, batches must be settled every 24 hours or else all the transactions of the batch will be charged the maximum transaction fees no matter which pricing tier each transaction fell into originally. Batch fees usually cost around 15 – 25 cents per batch and vary by processor. Other known name variations for “Batch Fee” are: Batch Capture Fee, Batch Header Fee, Batch Settlement Fee or Daily Closeout Fee.

About The Author

Phillip Parker

Phillip Parker is an independent digital payment consultant specializing U.S. and Canadian point-of-sale, ecommerce, and mobile payment acceptance. He has nearly two decades of experience in card payment services, both as a former merchant services sales representative and as a professional journalist covering the payments industry. Phillip created this website and has written over 1,000 articles regarding all things payments. He has also researched and published reviews about nearly every payment services provider and processor. In addition his contributions here, Phillip has also been quoted in several major publications such as The Los Angeles Times, INC Magazine, Miami Herald, Computer World, and numerous others.

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