The term “Batch Fee” is also known as a Daily Closeout Fee, A Settlement fee, a Batch Settlement Fee, A Batch Header Fee or a Batch Capture Fee.
Batch Fee refers to the combined amount of credit card charges in one business day that will be deposited into the business owner’s bank. This is a convenience that saves the business owner transaction fees by grouping the sales together into one batch. It is more convenient for all involved because each and every credit card sale is not a deposit, instead they are all batched together as one. The amounts are typically settled and deposited within 48 hours after the sale. Merchants settle batches themselves typically, however some credit card systems do it automatically every day at predetermined intervals.
Batch fees are on average between 15-25 cents each batch. If a batch is not settled every 24 hours the transaction of the batch will be charged the maximum fee regardless of the original pricing tier.