Transaction processing system

What is transaction?

Today all the application we are using are based on Transaction processing  system from your e-banking toe railway booking this article  describes Transaction processing  system in detail  .In the normal course doing business there are many events which take place in transactions are events which involve two or more parties one being the business entity .transactions normally involve money worth. There are many transactions that occur in the business organizations and are taking phase on a continuous basis on all fronts in business entry.

We  have transaction taking place in sales ,purchase ,payments being made and received ,deposits received and made refunds being issued and received and withdrawals  all these are transactions and are very base of the existence of the business enterprise. Let us study a normal business transactions where a company sells a product to a  customer online using e-commerce.

Data about the customer ,payment mode and details of payment ,product details need to be captured and processed this  needs to be done along with these needs to be captured and processing needs to with transaction documents  additional transactions are also triggered like adjustment in the inventory ,customer database creation of invoice and updating of accounts. These types of transactions are taking place on continuous basis in a business enterprise on the other hand business enterprise is meant for transaction.

What is transaction processing?


       We have seen in above article starting transactions are now we will describe how transactions work or process and the rule that govern it. The data  that is generated has been processed and we are need to process it the transaction is being processed there are some rules and regulation need to be followed for transaction to the rules are described below

There are business rules policies and guidelines that are set by the management of the business enterprise and by statutory authorities and every transaction have to be abide and follow these rules, policies and guidelines is a must .in case the transaction does not confirm to the rules then corrective action needs to be taken and the matter should be reported to the proper authorities.

Every transaction should be securitized  and scrutinized for their adherence to the business rules and the data values should also checked to be ensured their corrections the settings of the rules ,policies and guidelines are the propogative of the management and the statutory authorities and are subject to change as need is felt of there its change in the regulations set by the statutory authorities .these rules ,policies and guidelines act bring in some degree of ease in process of the transactions.

These rules are checked at the entry level and if any one rule is not satisfied or there is deviation from the policies and the guidelines that are set the transaction are kept under till further corrections are carried out and if it is not possible to carry out corrections and the transaction is rejected totality.

It becomes very important for the person who is designing the transaction processing system to have thorough knowledge of rules, policies and guidelines of the business enterprise and should keep options open in the system to make exceptions and adjustments or to a more rules or alterations in the rules .Checks are needed for the conformance of the transaction with the rules set the business.

Transaction processing system.

Transaction processing  system (TPS) automate the handling of data about the business activities or transactions ,which can thought activities or transactions, which can be thought of as a simple ,discrete events in life of a organization.

Data about each transaction are capture, transaction are verified and accepted or rejected and validated transaction are stored for later aggregation .reports may have be produced immediately to provide standard summarization of transaction and transaction may be moved from process to process in order to handle all aspect of business activity.


Transaction processing system


Features of transaction process system:

Transaction Processing Systems:

Information systems that process data generated from business transactions are known as transaction processing systems or TPS. We can say , the main job of a transaction processing system is to collect data generated from the transactions, are stored it, and, at  many  times, controlling  the decisions and the entries  that are taken arising out of the transactions. s can be in the form of which include purchasing ,selling, depositing and withdrawing the  purchases, sales, For instance, booking Such transaction airline ticket, withdrawing money from an ATM, depositing cash in the bank, etc are all example of transactions.

Generally, these transactions occur on a day-to-day-basis. A sale or purchase of an item triggers many other transactions like credit checking bills and detail information related to inventory thus, transactions generate additional data. What are the real need and objectives of a transaction processing system: We need to carry our everyday transaction of the organization a regular basis.

Rapid response

Fast performance with a rapid response time is critical .business cannot afford to have customers waiting for at to respond, the turnaround time from the input of the transaction to the production for the output must be a few seconds or less.


Many organization rely heavily on their Transaction processing system TPS; a breakdown will disrupt operations for even stop the business, for a TPS to be effective its failure rate must be very low. If a Transaction processing system TPS does fail the quick and accurate recovery must be possible. This make well designed well equipped backup and recovery.


A Transaction processing system TPS wants every Transaction to be processed in the same way regardless of the user, the customer or the time time for the day. IF a Transaction processing system We flexible they would be too many opportunities for non standard operations for example ,a commercial  airline needs to be consistently accept airline reservation from a range of travels agents ,accepting different transaction data from different travel agent would be a problem.

Controlled processing

The processing in a Transaction processing system TPS must support an organization s operation .for example is an organization allocated role and responsibilities to particular employees the Transaction processing system. Should enforce and maintain this requirement.

The Applications of Transaction processing system in our day to day life.

BATCH processing:

Batch processing can be seen as a is a resource saving Transaction processing system  Type that stores data for processing at predefined ties. Batch processing is useful for the enterprise that need to process large amounts of data using limited resources. Example of batch Transaction processing system includes credit card transactions, for while the transportation transaction is processed monthly rather than real time. credit card Transaction processing  system need only be processed once a month in order to produce a statement for the customer ,so batch processing save its resources from having to process each transaction individually

Real-time processing:

In many cases  the primary factor consider  is speed for example when a bank customer withdraws money a sum of money from his or her account it is vital that the transactions be processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of ends.

Sourabh Bhunje

Sourabh Bhunje, B.E. IT from Pune University. Currently Working at Techliebe. Professional Skills: Programming - Software & Mobile, Web & Graphic Design, Localization, Content Writing, Sub-Titling etc.

Leave a Reply