Batch processing is a method of automating the processing of multiple transactions as a single group, requiring no user interaction during the process. This distinguishes it from transaction processing, where transactions are handled individually and involve user interaction.
It is particularly useful for end-of-cycle tasks, such as generating bank reports at the end of the day or processing monthly or biweekly payrolls.
Batch processing is commonly used for handling tasks like payroll, end-of-month reconciliation, or settling trades overnight. While it may require significant upfront investment for design and implementation, it can save money and labor over time.
This approach became prevalent in large enterprises with the introduction of mainframe computers around the middle of the 20th century. Initially, it involved using punched cards to provide commands to the computer for batch processing tasks.
Written by Andrii Vovk