Batch File Processing

Batch file processing is the handling of many records together in a single file at scheduled times, rather than one at a time as they occur. It is the traditional way most payment and banking systems work. A company sends its bank one file containing hundreds of supplier payments; the bank submits a file of credits and debits to the ACH; acquirers send card networks daily clearing files; and core banking systems post interest and fees in end-of-day runs. Files follow fixed formats, such as NACHA in the United States, Bacs Standard 18 in the UK or ISO 20022 pain.001,, and are checked before processing. Batch processing is efficient and easy to reconcile but slow, since nothing moves until the next run. Real-time payments have reduced its role, though much back-office work still depends on it. Also see bulk payments and batch settlement.