Batch Transaction Processing Systems

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NameBatch Transaction Processing Systems
A typeDocumentation

Information Processes and Technology

Pay for I.T

Transaction Processing Systems

Batch Transaction Processing Systems




Processed as a batch

Batch procesing is a method of processing data in which data is collected at the time of the event. The data is then prepared for input as a single unit and the actual updating takes place when it is scheduled or when there is sufficient data. Quite often the updating is automated – that is, when the update is executed there is no interaction between the user and computer. Eg. A MICR reader processing cheques
Batch processing was the only feasible method of processing data, however, as telecommunication technologies have become increasingly used in business, real-time processing has become a more common-place.

Batch processing is still commonly used for applications such as Cheque Clearance, Bill Generation, Credit Card Transactions??, Payrolls, Stock control, Overdue Library books, Accounting and hotel accounts.

Advantages Of Batch Processing

Disadvantages of Batch Processing

Transaction Processing systems provide data for other systems. Batch processing is transaction processing in which information for individual transactions are gathered at the time of the event and stored but is not processed immediately. Batch processing often occurs ata time convienient to the system or when there is enough data and without any further interaction with the users.

Some systems appear to be real time, processing transactions as they occur, but the actual updating is processed in a batch such as with credit cards.
Complete the following table for each of the examples

Electricity Bills

Cheque Payment

Credit Card Payment



(carry out the Processes)

End Users

(Who benefit from the system)

Information Technology (Hardware, Software, Connection Mediums)

EFTPOSBatch or Real Time???

(Electronic Funds Transfer at point of Sale) refers to electronic, online authorisation of a transaction from a remote terminal by a financial institution or a host processor that is typically part of the computer system of a bank or credit-card issuer.

Many people assume credit card transactions at an EFTPOS machine are occurring in real time, when in fact they occur in a batch. The only data that is checked online at the time of a credit transaction is:

  1. Is the card lost or stolen

  2. Is the card over the credit limit

The remainder of the transaction, that is the updating stage, (money transfer and calculation of the new balance) is performed in a batch anything from a few hours to several days later…particularly with overseas transactions. Credit or EFTPOS transactions conducted using the impression machine and the carbonised paper are obviously processed as a batch at the end of every day or two.
The two major concerns of real time transaction processing that relate to the ACID properties; Atomicity and Consistency (which relates to Concurrency)
Real Time Transaction Processing – also known as On-Line Transaction Processing (OLTP)



Processed as transaction takes place

Real time transaction processing systems imply the immediate processing of data – that is as the transaction is taking place, the data is being processed. This is often referred to as online transaction processing as the data is generally entered into a workstation (POS terminal) which is connected in a topology formation to a network, with the data eventually residing somewhere on a server. Data is verified (validated) as it is entered.

Real time processing involves users simultaneously entering transactions and controlling the processing of the transaction.

The system would quite often be “conversational” – that is there is a continual exchange of information between the participant and the system.

The main examples of real time transaction processing systems include ticket reservation systems (airline, theatre etc), Library Loans Systems, and Point of Sale Systems.

Advantages Of Real Time Processing

Disadvantages of Real Time Processing

Transaction Processing systems provide data for other systems. Batch processing is transaction processing in which information for individual transactions are gathered at the time of the event and stored but is not processed immediately. Real time processing refers to transaction processing in which each transaction is processed immediately at the time of the event.
For each of the characteristics below, decide whether it refers to ral time or batch.


Real Time or Batch

  1. Large amounts of data

  1. Access to online database

  1. Each transaction is a stand alone transaction

  1. Easier to maintain

  1. Cheaper

  1. Database required online all the time

  1. Fewer errors

  1. Response time is not critical

  1. More errors during organising and storage

  1. More computer operators required

  1. Each transaction is part of a group

  1. Database not accessible at all times

  1. Up to date information is an important consideration

  1. Information gathered, stored and not processed immediately

  1. Fast response time

  1. Infrequent errors may occur but the system is not shut down

Is it Batch or Real Time Processing?

Some systems appear to be real time TPS, processing transactions as they occur , but actual updating is processed in a batch. Explain carefully which part of the transaction is batch and which part is realtime processing for each of the examples below.


Real Time

Credit Card Transactions

A file is sent to the printer

Presenting a cheque for payment

Withdrawing cash from an ATM

Construct a Context Diagram and DFD Diagram for a Bill Generation System eg. Mobile phone
HSC Questions Real Time and Batch Transaction Processing Systems
Question 25 — Transaction Processing Systems (20 marks)
(c) Compare and contrast batch and real-time transaction processing. Include

examples in your answer. (5 Marks)
Speciman Paper
Question 25 (continued)
(b) Country Bakers produces a wide variety of delicious pies made with

fresh fruit. Each variety of pie is ‘seasonal’ as it is only made when

the fruit is in season. Some time ago Country Bakers established a website to advertise its pies and provide information about placing orders via the telephone,

facsimile and e-mail. Since the establishment of the website, the

number of orders received has increased markedly.
All orders received are entered into the Sales System. The Sales

System processes all transactions relating to sales and stock, and

maintains customer and stock databases.

A number of problems have arisen with the increase in orders:

• Staff are having trouble finding enough time to enter all the

additional orders.

• Many of the orders received by e-mail and facsimile require

changes as they include pies that are out of season. In these cases

the customer has to be contacted, significantly slowing the

fulfilment of orders.

• Many customers pay for the orders by credit card. Each of these

payments is currently processed manually, which is time

consuming and error prone.

The manager of Country Bakers is very happy with the increase in

business, but wonders if the website could be used to solve the

problems that have arisen from the increased number of orders.
(i) Propose and justify ways in which the website could be modified or

extended to address the current problems.
2001 HSC Exam
Question 25 — Transaction Processing Systems (20 marks)
(a) (i) Define batch processing, and briefly describe a situation where batch

processing is appropriate. (3 Marks)

2002 HSC Examination
(a) (i) Define real-time processing, and briefly describe a situation where

real-time processing is appropriate. (3 Marks)
2003 HSC Examination
No direct questions pertaining to Real time and Batch Transaction Processing Systems.
2004 HSC Examination
No direct questions pertaining to Real time and Batch Transaction Processing Systems.

2005 HSC Examination

(i) Define batch processing and give an example. (3 marks)
(ii) Define MICR and give an example of its use. (3 marks)
Use the following information to answer parts (b)–(c).
A cinema allows customers to purchase movie tickets via the internet. Using a web browser, customers select the movie session they wish to see and submit credit card details. The system provides the customer with an image of a ticket which contains a unique bar code. The customer prints the image and brings the hard copy to the cinema. Entry to the movie is via a turnstile capable of reading that bar code.
(i) Design a suitable web-based data entry screen for the customer to submit

data about their choice of movie session, and their credit card details.

Indicate clearly what screen elements are being used to input the data

(eg, text field, pull-down menu, radio buttons), and justify your choices.

(4 marks)
(ii) Describe the sequence in which this real-time transaction processing

occurs, and identify the main information technology required at each

stage. (4 marks)

2006 HSC Examination

Use the following information to answer parts (b) and (c).
In 2001 the Australian Capital Territory successfully used the EVACS electronic voting system in a parliamentary election. At the polling place, a vote is processed in the following steps:

(i) Outline real-time processing and batch processing in the EVACS system, and clarify the sequence in which real-time and batch processing occur. (4 marks)
(ii) Identify and describe security measures that could be used in the EVACS system to protect data during storage and retrieval. (4 marks)
(c) Predict and explain the issues that might arise if SMS (short messaging system) votes from mobile phones were used for future parliamentary elections. In your response, you may consider aspects such as:

• security

• interface design

• technology

• social issues. (6 marks)
2007 HSC Examination

2008 HSC Examination

2009 HSC Examination

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