A Closed Batch — or closing a batch — refers to the action of transmitting a group (or batch) of credit or debit card transactions to the payment processor or acquiring bank for settlement.
Closing the batch marks the end of the business day, initiating the transfer of funds from the cardholders’ accounts into the merchant’s account. Once a batch is closed, the transactions contained within it cannot be modified or voided. They can only be refunded or subjected to a chargeback.
The batch closure process plays a crucial role in the daily operations of merchants that accept card payments, marking the transition between different business days and allowing for accurate financial tracking and reconciliation.