What is batching in transaction processing?

Batching in transaction processing refers specifically to the practice of storing authorized transactions until they can be submitted en masse for processing. This method is efficient because it allows multiple transactions to be grouped together, reducing the number of separate communications that need to occur with the payment processor or card networks.

When transactions are batched, merchants can process them at specific intervals rather than immediately after each transaction occurs. This can streamline operations, reduce processing costs, and help in managing transaction workflows more effectively. Once the batch is ready, all stored transactions are submitted in one go, which can speed up overall processing times and help ensure accurate and organized record-keeping.

This understanding is essential in the context of electronic payment systems as it highlights the importance of efficiency in handling multiple transactions while maintaining the accuracy and integrity of transaction records.