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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.

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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.

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