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Transaction monitoring is the process of reviewing, analyzing and administering the transactions processed on a business application or information system.
It is an IT management and security process that evaluates each or selected transactions performed on a given application or system.
Transaction monitoring is also known as business transaction monitoring.
Transaction monitoring is primarily done to evaluate the overall performance of the transaction processing system or the information system.
Transaction monitoring can be done both through manual or automated means. Manual testing generally reviews the compliance of business logic used within the transaction whereas automated testing validates the transaction at the code / technical level.
Typically, transaction monitoring measures the time taken to complete a business transaction. The results are evaluated to identify methods through which the performance or time of a transaction can be improved