Batch Settlement refers to the process of settling all the transactions stored in a batch. This usually happens at the end of the business day, but the timing can vary depending on the merchant’s settings and the requirements of their payment processor.
During batch settlement, the transaction data is sent from the POS terminal or host to the payment processor. The processor communicates with the card networks and issuing banks to facilitate the movement of funds from customers’ accounts to the merchant’s account.
Once settlement is complete, the merchant’s account is credited with the funds from the transactions.