What fee is incurred when settling daily credit card transactions?

The correct fee incurred when settling daily credit card transactions is referred to as the batch fee. This fee is charged by payment processors for the service of aggregating and processing a batch of transactions that have been authorized throughout the day. At the end of the business day, the merchant submits their daily transactions in a batch for settlement, and the batch fee is applied in conjunction with this process.

Understanding the batch fee helps clarify its role in the entire transaction lifecycle, as it specifically relates to the end-of-day processing of all transactions rather than individual transaction processing, which is covered under different fees. In contrast, other types of fees like settlement fees, processing fees, or transaction fees may pertain to different aspects of card transactions, but the batch fee is specifically linked to the batch processing of multiple transactions together. This delineation is important for merchants to understand their overall costs when managing credit card transactions.