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What is a deposit?

de-pos-it
noun

A deposit refers to the action taken by a merchant upon completing the processing of a set of transactions and subsequently submitting them to the host computer for settlement. It's important to distinguish this step from simply releasing a batch.

When a merchant successfully processes a batch of transactions and forwards them to the host computer for settlement, it is termed "batch closure." This procedure should ideally be performed on a daily basis to ensure the merchant benefits from the most favorable discount rates available.