The process where the credit card number is submitted through the phone is processing manually. This is done either by contacting the payment processing company to verify the validity of the card or by keying the card manually at the sales terminal.
Manual processing can be time consuming but is relatively risk free due to complete control of the merchant during the entire process. The payment processing time taken will be more then what real time payment processing will take.
Real time processing is basically an automated process, where the credit card is automatically processed once the customer submits the number. As soon as the credit card is authorized the funds are transferred from the customers account to the retailers account.
Real time payment processing is quick and is ideal for businesses where a large number of transactions take place.





