Real-time and Batch processing
There are a number of differences between real-time and batch processing. These are outlined below:
- Each transaction in real-time processing is unique. It is not part of a group of transactions, even though those transactions are processed in the same manner. Transactions in real-time processing are stand-alone both in the entry to the system and also in the handling of output.
- Real-time processing requires the master file to be available more often for updating and reference than batch processing. The database is not accessible all of the time for batch processing.
- Real-time processing has fewer errors than batch processing, as transaction data is validated and entered immediately.With batch processing, the data is organised and stored before the master file is updated. Errors can occur during these steps.
- Infrequent errors may occur in real-time processing; however, they are often tolerated. It is not practical to shut down the system for infrequent errors.
BTP collects the transaction data as a group and processes it later after time delay as batches of identical data.
- Processed when convenient or economical to do so.
- Large volumes have lower processing costs.
- Collected and stored offline using magnetic tape or paper.
- Batch approach is used for generating pay cheques etc.
- Carried out in large organisations using mainframe or midrange computers.
- Three disadvantages are
- the transactions must wait for processing as schedule is predetermined,
- errors cannot be corrected during processing and
- sorting transaction data is expensive and time consuming.
Examples of BTP systems include:
- CHEQUE CLEARANCE- A cheque is a written order asking the bank to pay an amount of money to a particular person.
- When one is issued to a person they deposit it into a bank account yet the money cannot be withdrawn until the cheque is cleared.
- This involves checking the that the cheque writer has enough money in their account to cover it usually taking 3 working days in which cheques are cleared in a group during a quiet period of the day.
- BILL GENERATION- Organisations develop a bill or invoice of services or products supplied to a customer.
- Usually generate a group of bills at a scheduled time as this enables the user to effectively mange time and results in less disruption to main database.
- CREDIT CARD TRANSACTIONS- Credit cards have become a method of paying for goods and services.
- In a credit slip system the retailer sends credit slips to the bank as a group.
- In POS terminal sales the transactions are stored for processing later.
- The customers may view their credit card transactions a real-time but the actual updating is batch.
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