Business

What is a batch payment and how does it work in Australia?

Roberto Efflandrin

31.01.23 (updated more than 1 year ago)

Read time 2 minutes

Batch payments are a convenient way to pay many people in one transaction. Australian banks and financial institutions can action these for you, with some restrictions. The Wise Business account streamlines the process.

Find out what batch payments are, how they work in Australia, the advantages and disadvantages of this method, and how Wise can assist.

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What is a batch payment?

A batch payment (also called a mass or bulk payment) is where you can pay multiple recipients in one transaction. The details of your recipients are all added to a single file which is then sent to your bank usually via a batch payment upload flow.

Once all is set, you can initiate the payment and your bank or financial institution will handle sending the payment to everyone listed in that batch payment file.

How batch payments work in Australia

Australian banks and financial institutions receive your instructions via a file and process them as same or future dates per your request. BPAY batch payments are an added feature in Australia.

The Reserve Bank of Australia must approve all batch administrators before actioning these transactions.¹

Same-day transactions to overseas debtors may be subject to cut-off periods, some as early as 11.00 am, so check with your bank.

The benefits of using batch payments

Australian businesses are moving towards batch payment processing because of the following:

One transaction can pay up to 1,000 people²
You save on transaction fees, usually 1 per batch
There’s less chance of error as there’s no double handling of data input
Batch payments can be automated to transact regularly
You can pay different countries in multiple currencies in one transaction

What are the downsides of batch payments?

Batch payments have many benefits, but a couple of downsides to consider:

Partial cancellations aren’t possible³
Some Australian financial institutions have cut-off times for international transactions
Spot-checking is needed. If you run regular payment batches based on the exact figures every time, occasional checks need to be done to be sure everything remains current

Which type of bank accounts offer batch payments?

Most Australian banks require you to have a business account to make batch payment transfers. Check with yours to understand the requirements.

How do batch payments work with the Wise Business account

With the Wise Business account free batch payments tool, you can pay up to 1,000 people in one transaction, any time of the day or night.

Download one of our templates into a spreadsheet program and fill in the blanks. Save it as a .csv file, then upload it to the ‘Batch Payments’ feature under the ‘Send Money’ link, and we’ll take care of it for you.

Funding the transaction is easy. Use the money held in your Wise Account or transfer the total amount to us before uploading the file.

One benefit of making batch payments via Wise is that your recipients can be paid in the currency of their choice, provided it’s supported.

For example, use your Australian funds to pay contractors in the USA, UK, Thailand, or Germany in a single transaction, and they all receive it in their local currency.

Wise Business Account

The Wise Business account is a hassle-free international account. Make and receive payments and manage your cash flow globally, with no hidden or monthly fees.

Hold money in over 50 different currencies and get local account details for 10 world currencies (including AUD, NZD, USD, GBP and EUR) to receive payments from abroad like a local. International transfers are conducted at the mid-market rate with no markups — just our standard low fees.

A business debit card is available to order for any nominated staff member. Keep your accountant happy with integration to Quickbooks and Xero.

Our business account also supports batch payment processing. You can even automate them with our open AI.

Find out how the Wise Business account can streamline your business's financial transactions.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

Sources:

RBA batch payment regulations
Batch payment advantages
Batch payment disadvantages

Sources checked on: 26 January 2023

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.