In the capture process, which entity aggregates the merchant batches by BIN?

The correct answer is the front-end processor. In the context of payment processing, the front-end processor is responsible for handling transactions from the point of sale until they reach the back-end systems. This includes aggregating merchant batches by Bank Identification Number (BIN), which is essential for sorting and routing the transactions appropriately for settlement.

The BIN is a unique number assigned to a financial institution and is used to identify the issuer of the card used in transactions. By aggregating batches by BIN, the front-end processor streamlines the process, making it more efficient for downstream systems that handle settlements and other processes. This role is significant for maintaining an organized structure of transaction data and ensuring that the overall payment process remains efficient and secure.

In contrast, the back-end processor typically manages tasks related to the settlement and clearing of transactions after they have been processed by the front-end. A card manufacturer’s role is focused on the physical production of payment cards and does not involve transaction processing. While merchants do manage their transactions, they rely on processors to handle the batching and transaction handling more efficiently.