Differences between online and batch processing
Online Processing: An online system handles transactions when the occur and provides output directly to users. Because it is interactive, online processing avoids delays and allows a constant dialog between the user and the system. The system processes transactions completely when and where they occur. Users interact directly with the information system. Users can accesss data randomly. The information system must be available whenever necessary to support business functions.
Batch Processing: Data is processed in groups or batches. Batch processing is typically used for large amounts of data that must be processed on a routine schedule, such as paychecks or credit card transactions. A batch processing system has several main characteristics: collect, group, and process transactions periodically. Batch programs require no user involvement and requires significantly fewer network resources than online systems.