Real-time and online processing are sometimes used interchangeably, but there is a distinction:
- Real-time processing involves immediate processing of data as a transaction occurs without delay. An example is bank ATM transactions.
- Online processing allows direct communication between user terminals and the central processor, but it does not require immediate processing. Data can be processed in batches rather than individually. An example is entering customer orders throughout the day and processing the batch at the end of the day.
So in summary:
- Real-time processing is immediate without delay
- Online processing allows direct communication but does not require immediate processing, batches can be used.