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In case of card transactions, the bank first sends the confirmation to the merchant before the transaction becomes complete. Which among the following is the process followed by banks in this system?
- a)Light Processing
- b)Batch Processing
- c)Utilizing Processing
- d)Definite Processing
- e)None of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In case of card transactions, the bank first sends the confirmation t...
Batch Processing:
Batch processing is the process followed by banks in card transactions when sending confirmation to the merchant before the transaction is complete. Here is how the process works:
1. Authorization Request: When a customer makes a card transaction, the merchant sends an authorization request to the bank for approval.
2. Batching Transactions: The bank collects these authorization requests in a batch to process them together at certain intervals rather than in real-time.
3. Confirmation to Merchant: Once the batch is processed, the bank sends confirmation to the merchant about the status of each transaction, whether it is approved or declined.
4. Transaction Completion: After receiving the confirmation, the merchant can proceed with completing the transaction if it is approved.
5. Settlement: At the end of the day or at specific intervals, the bank settles the transactions with the merchant by transferring the funds for approved transactions.
6. Benefits of Batch Processing: Batch processing allows banks to efficiently handle a large volume of transactions, reduces communication costs, and streamlines the reconciliation process for both the bank and the merchant.
In conclusion, batch processing is the method used by banks to send confirmation to merchants in card transactions before the transaction is finalized. This process improves efficiency and helps in managing transactions effectively.
Batch processing is the process followed by banks in card transactions when sending confirmation to the merchant before the transaction is complete. Here is how the process works:
1. Authorization Request: When a customer makes a card transaction, the merchant sends an authorization request to the bank for approval.
2. Batching Transactions: The bank collects these authorization requests in a batch to process them together at certain intervals rather than in real-time.
3. Confirmation to Merchant: Once the batch is processed, the bank sends confirmation to the merchant about the status of each transaction, whether it is approved or declined.
4. Transaction Completion: After receiving the confirmation, the merchant can proceed with completing the transaction if it is approved.
5. Settlement: At the end of the day or at specific intervals, the bank settles the transactions with the merchant by transferring the funds for approved transactions.
6. Benefits of Batch Processing: Batch processing allows banks to efficiently handle a large volume of transactions, reduces communication costs, and streamlines the reconciliation process for both the bank and the merchant.
In conclusion, batch processing is the method used by banks to send confirmation to merchants in card transactions before the transaction is finalized. This process improves efficiency and helps in managing transactions effectively.
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In case of card transactions, the bank first sends the confirmation t...
After a credit card transaction has been authorized by the issuing bank by sending an authorization code to the merchant, the settlement stage of the process begins. This is called batch processing because a number (or batch) of transactions is settled all at one time.
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In case of card transactions, the bank first sends the confirmation to the merchant before the transaction becomes complete. Which among the following is the process followed by banks in this system?a)Light Processingb)Batch Processingc)Utilizing Processingd)Definite Processinge)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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