How Batch Transaction Processing Works

Transaction processing is a process wherein a bunch of data is managed by a system. This includes different types of transactions, such as reserving airline tickets, processing credit cards and others. Batch transaction processing has the same idea but it deals with multiple transactions that are executed by a computer. It is set up so that a bunch of data is processed by the computer without any human interaction.

Here is how batch processing works:

  1. Batch Processing - Batch processing is the processing of multiple credit card transactions all at the same time. A credit card processor system works with all the transactions without the need for human interaction in doing the job. Batch processing is useful for tellers as it is more convenient to settle different credit card transactions all at the same time without having to worry about it.
  2. Using Your Credit Card - When you use your credit card to purchase or pay for products and services that you need, the transaction process for your purchases is monitored. This is the case for most banking companies, including Visa processing. The transaction system is the one that processes your credit card.
  3. Credit Card Batch Processing - After you have purchased something using your credit card, it will be transacted into the processing system of the bank. You are not billed for each of your purchases using the credit card. Instead, you are given one bill with all the purchases that you have made. The bill is done that way because of batch processing. It accumulates all your purchases and puts them in one billing statement when the billing time arrives. This cycle is repeated for each month of the year.

Some benefits of batch processing:

  1. Convenience - Batch processing is more convenient for bank tellers. This is because they do not need to do transactions online for each purchase but instead, one whole statement that has different transactions. They also have more time accommodating customers as batch processing machines do not need to be operated by a person in order to work.
  2. Same Money - Making transactions for each bill has a minimal expense but if you process a lot of them, the fees will pile up and you will see a big difference in expenses. Batch processing makes the transaction fees nominal as fewer resources are used for batch processing instead of individual processing.
  3. Efficiency - Transactions in a batch statement are easier to find. This is helpful if you are trying to find a particular purchase or if you have a problem with a transaction. You will only have to find the transaction in 1 statement rather than going through plenty of statements.

This is how batch transaction works and some of the benefits that come with batch transaction. Batch transaction processing is not only meant for credit cards. It also deals with a lot of other transactions that are as important.


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