Transaction Processing

What Does Transaction Processing Mean?

Transaction processing is the process of completing a task and/or user/program request either instantly or at runtime. It is the collection of different interrelated tasks and processes that must work in sync to finish an overall business process transaction.

Advertisements

Techopedia Explains Transaction Processing

Transaction processing relates to any real-time business transaction or process performed by a transaction processing system (TPS) or other business information system (BIS). The process occurs when a user requests completion or fulfillment of any process. Once a a TPS or related system receives a request, it coordinates with the respective system for authorization, data requests or any specific task essential to a complete transaction.

For example, when a cash withdrawal request is made at an ATM machine, the machine first authorizes the user credentials and balance inquiry/status from the back end banking systems. Once the information is received, the ATM machine processes the user request or overall transaction. Moreover, a TPS can accept, reject or halt a transaction based on environmental variables.

Advertisements

Related Terms

Latest Productivity Software Terms

Related Reading

Margaret Rouse

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…