A batch payment involves sending numerous payments to different recipients together in one transaction instead of separate transactions. It's beneficial for businesses dealing with international payrolls, recurring invoices, or large transaction volumes, simplifying their payment processes.

Batch payments are also known as bulk payments, mass payments, or mass payouts, all describing a single payment from your account that covers multiple recipients simultaneously.

Now you know what a batch payment is, let’s find out how one works.

How does a batch payment work?

Instead of making individual payments and processing each transaction consecutively, batch payments allow you to pay out to multiple receivers at once. Usually you’ll upload a spreadsheet containing all the information required by the software processing the payments.

The payments are then processed from one account, with a payment gateway generating the required amount and sending it to the receivers’ accounts in the preferred currency. Batch payments are ideal for when you have a high volume of regular payments, and are particularly useful for paying out to recipients in different currencies.

What are the benefits of batch payments?

Batch payments benefit businesses by saving time, reducing errors, enabling global payments across currencies, and potentially saving costs by processing multiple transactions together.

Here's how batch payments could benefit your business:

Error reduction and time-saving

Batch payments significantly reduce the likelihood of errors as recipient details aren't entered individually. This also helps businesses save time by removing lengthy manual admin processes.

Payment flexibility

Adjustments to batch payments are more straightforward than modifying individual transactions manually, providing flexibility and ease in managing payment details.

Simultaneous payments

Batch payments facilitate payments across different countries and currencies at the same time. They play a crucial role in supporting businesses' global expansion without necessitating extensive changes within their accounting teams.

Cost efficient

Batch payments offer cost-saving advantages, particularly in global transactions, as fees are typically charged per batch rather than per individual payment. This approach can significantly reduce business transaction costs, improving financial management.

How does 3S Money support batch payments?

Businesses benefit from batch payments through streamlined processes, reduced human error risks, and improved transaction oversight, making money transfers faster, cheaper, and more efficient.

Increased payment capabilities

Businesses can utilise batch payments to handle different transactions, including (but not exclusive to) vendor/supplier payments, employee salaries, invoices, bill payments, refunds, and bulk payouts.

Creating batch payment instructions

Users can generate batch payment instructions using two methods: directly within an Excel spreadsheet or by exporting data from existing financial or Enterprise Resource Planning systems (ERPs).

Multicurrency batch payments

Businesses can use 3S Money's online digital payments platform to execute large, high-value batch payments worldwide in multiple currencies, streamlining international transactions.

Security measures

Every payment made via 3S Money is safeguarded by our top-tier banking partners and protected using industry-standard encryption and two-step user authentication.

If you'd like to learn more about how 3S Money can help level your payment capabilities, contact our team today.

Last updated: 10/01/24