Transaction Processing System

In this article, we shall talk about Transactions Processing System. We shall discuss some attributes and prerequisites of Transaction processing system along with some examples.

What is Transaction Processing System?

The processing system developed to record day to day transactions of any organisation is called Transaction Processing System.

In any organization, it is very important that each and every transactions of the day to day business of the organization are recorded accurately, properly and in a timely manner. The transaction processing system is specifically developed to meet this need of the organization.

The information stored on this system is the base source of information for other information systems like Executive Information System and Management Information System. No TPS would typically mean No EIS and MIS.

TPS demands detailed information from its users. And these users are mostly the lower level management of an entity.

Examples of TPS include online forms, ATM machines, Tally ERP, checkout page of Flipkart and BookMyShow etc.

What are the attributes of a Transaction Processing System?

The basic features of a TPS can be broadly classified into 4 categories.

Access Control

TPS are secure and can only be accessed by authorized persons. Usually a user has to login using his credentials to use this system. And only the information relevant to that user is shown to him. This ensures safeguard of information and prevents its misuse. Eg: ATM machine.

Equivalence

The Pattern of a TPS uses a single format to record all transactions. This includes same format, same fields for providing information. This uniformity of data is the key feature of TPS, due to which comparison and analysis of data is made easier. Eg. Flipkart asks all the users the same information like name, delivery address and payment information on its checkout page.

High Volume Rapid Processing

The nature of a TPS is such that hundreds of transactions made are recorded simultaneously by the system. Transactions are recorded as and when they are completed and more than one user can work simultaneously on this system without any hassles. Eg: a single system handles all the ATM machines of all the banks under VISA, SCT and mastercards etc.

Trustworthiness

The system performs several checks to maintain the integrity of the data. Data integrity means that the data is both complete and accurate. Eg: * marked fields in an online forms need to be filled, the phone no. field input can not exceed 10 digits, the correct pin needs to be entered to complete the transaction etc.

What prerequisites shall a Transaction Processing System possess? (ACID Test)

These are the essential requirements that justify a Transaction Processing System.

Atomicity (In full or Not at all)

This means that either a transaction is completed and recorded in full, or not completed hence not recorded at all. TPS ensures that transactions take place in their entirety.

Example: While withdrawing cash from an ATM machine, two things can happen. First, the transaction may not be complete due to wrong pin, insufficient funds or wrong account selection. Here, the transaction is not complete hence it is not recorded in the system.

Or, the transaction will be complete. The ATM will dispense the correct amount of cash, and the proper account of the user is debited with the amount withdrawn and thus, properly recorded by the system.

Consistency (Rules)

The system consistently follows the rules which are related to a transaction. All of these rules are checked properly by the system before the transaction is completed.

Examples include: Rules like Daily withdrawal limit, Actual account Balance, Correct PIN, etc should be followed to complete a transaction at an ATM machine.

Isolation (Simultaneously & Immediately)

If a transaction is completed, all the relevant entries related to the transaction are automatically processed.

Eg: When the ATM dispenses cash, the relevant user account is simultaneously and immediately debited.

Durability (once done can't be undone)

A TPS system is such that once a transaction is complete, it can not be undone. A user can not undo the transaction after the ATM has dispensed the cash.

Durability also means that once the transaction is completed, a log is generated by the system so that in the event of system crashes, all the entries made by the system can be retrieved from the log.

So, this is what a TPS is all about. If you have any questions, feel free to comment

Thank You

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Transaction Processing System

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<h2><strong style="color: rgb(102, 185, 102);">What is Transaction Processing System?</strong></h2><p>The processing system developed to record day to day transactions of any organisation is called Transaction Processing System.</p><p>In any organization, it is very important that each and every transactions of the day to day business of the organization are recorded accurately, properly and in a timely manner. The transaction processing system is specifically developed to meet this need of the organization.</p><p>The information stored on this system is the base source of information for other information systems like Executive Information System and Management Information System. No TPS would typically mean No EIS and MIS.</p><p><span style="color: rgb(53, 53, 53);">TPS demands detailed information from its users. And these users are mostly the lower level management of an entity.</span></p><p>Examples of TPS include online forms, ATM machines, Tally ERP, checkout page of Flipkart and BookMyShow etc.</p><h2><br></h2><h2><strong>What are the attributes of a Transaction Processing System?</strong></h2><p>The basic features of a TPS can be broadly classified into 4 categories.</p><h1><strong>Access Control</strong></h1><p>TPS are secure and can only be accessed by authorized persons. Usually a user has to login using his credentials to use this system. And only the information relevant to that user is shown to him. This ensures safeguard of information and prevents its misuse. Eg: ATM machine.</p><h1><strong>Equivalence</strong></h1><p>The Pattern of a TPS uses a single format to record all transactions. This includes same format, same fields for providing information. This uniformity of data is the key feature of TPS, due to which comparison and analysis of data is made easier. Eg. Flipkart asks all the users the same information like name, delivery address and payment information on its checkout page.</p><h1><strong>High Volume Rapid Processing</strong></h1><p>The nature of a TPS is such that hundreds of transactions made are recorded simultaneously by the system. Transactions are recorded as and when they are completed and more than one user can work simultaneously on this system without any hassles. Eg: a single system handles all the ATM machines of all the banks under VISA, SCT and mastercards etc.</p><h1><strong>Trustworthiness</strong></h1><p>The system performs several checks to maintain the integrity of the data. Data integrity means that the data is both complete and accurate. Eg: * marked fields in an online forms need to be filled, the phone no. field input can not exceed 10 digits, the correct pin needs to be entered to complete the transaction etc.</p><h2><br></h2><h2><strong>What prerequisites shall a Transaction Processing System possess? (ACID Test)</strong></h2><p>These are the essential requirements that justify a Transaction Processing System. </p><h1><strong>Atomicity (In full or Not at all)</strong></h1><p>This means that either a transaction is completed and recorded in full, or not completed hence not recorded at all. TPS ensures that transactions take place in their entirety.</p><p>Example: While withdrawing cash from an ATM machine, two things can happen. First, the transaction may not be complete due to wrong pin, insufficient funds or wrong account selection. Here, the transaction is not complete hence it is not recorded in the system.</p><p>Or, the transaction will be complete. The ATM will dispense the correct amount of cash, and the proper account of the user is debited with the amount withdrawn and thus, properly recorded by the system.</p><h1><strong>Consistency (Rules)</strong></h1><p>The system consistently follows the rules which are related to a transaction. All of these rules are checked properly by the system before the transaction is completed.</p><p>Examples include: Rules like Daily withdrawal limit, Actual account Balance, Correct PIN, etc should be followed to complete a transaction at an ATM machine.</p><h1><strong>Isolation (Simultaneously &amp; Immediately)</strong></h1><p>If a transaction is completed, all the relevant entries related to the transaction are automatically processed. </p><p>Eg: When the ATM dispenses cash, the relevant user account is simultaneously and immediately debited.</p><h1><strong>Durability (once done can't be undone)</strong></h1><p>A TPS system is such that once a transaction is complete, it can not be undone. A user can not undo the transaction after the ATM has dispensed the cash. </p><p>Durability also means that once the transaction is completed, a log is generated by the system so that in the event of system crashes, all the entries made by the system can be retrieved from the log.</p><p><br></p><p><br></p><p>So, this is what a TPS is all about. If you have any questions, feel free to comment</p><p>Thank You</p>

<h2><strong style="color: rgb(102, 185, 102);">What is Transaction Processing System?</strong></h2><p>The processing system developed to record day to day transactions of any organisation is called Transaction Processing System.</p><p>In any organization, it is very important that each and every transactions of the day to day business of the organization are recorded accurately, properly and in a timely manner. The transaction processing system is specifically developed to meet this need of the organization.</p><p>The information stored on this system is the base source of information for other information systems like Executive Information System and Management Information System. No TPS would typically mean No EIS and MIS.</p><p><span style="color: rgb(53, 53, 53);">TPS demands detailed information from its users. And these users are mostly the lower level management of an entity.</span></p><p>Examples of TPS include online forms, ATM machines, Tally ERP, checkout page of Flipkart and BookMyShow etc.</p><h2><br></h2><h2><strong>What are the attributes of a Transaction Processing System?</strong></h2><p>The basic features of a TPS can be broadly classified into 4 categories.</p><h1><strong>Access Control</strong></h1><p>TPS are secure and can only be accessed by authorized persons. Usually a user has to login using his credentials to use this system. And only the information relevant to that user is shown to him. This ensures safeguard of information and prevents its misuse. Eg: ATM machine.</p><h1><strong>Equivalence</strong></h1><p>The Pattern of a TPS uses a single format to record all transactions. This includes same format, same fields for providing information. This uniformity of data is the key feature of TPS, due to which comparison and analysis of data is made easier. Eg. Flipkart asks all the users the same information like name, delivery address and payment information on its checkout page.</p><h1><strong>High Volume Rapid Processing</strong></h1><p>The nature of a TPS is such that hundreds of transactions made are recorded simultaneously by the system. Transactions are recorded as and when they are completed and more than one user can work simultaneously on this system without any hassles. Eg: a single system handles all the ATM machines of all the banks under VISA, SCT and mastercards etc.</p><h1><strong>Trustworthiness</strong></h1><p>The system performs several checks to maintain the integrity of the data. Data integrity means that the data is both complete and accurate. Eg: * marked fields in an online forms need to be filled, the phone no. field input can not exceed 10 digits, the correct pin needs to be entered to complete the transaction etc.</p><h2><br></h2><h2><strong>What prerequisites shall a Transaction Processing System possess? (ACID Test)</strong></h2><p>These are the essential requirements that justify a Transaction Processing System. </p><h1><strong>Atomicity (In full or Not at all)</strong></h1><p>This means that either a transaction is completed and recorded in full, or not completed hence not recorded at all. TPS ensures that transactions take place in their entirety.</p><p>Example: While withdrawing cash from an ATM machine, two things can happen. First, the transaction may not be complete due to wrong pin, insufficient funds or wrong account selection. Here, the transaction is not complete hence it is not recorded in the system.</p><p>Or, the transaction will be complete. The ATM will dispense the correct amount of cash, and the proper account of the user is debited with the amount withdrawn and thus, properly recorded by the system.</p><h1><strong>Consistency (Rules)</strong></h1><p>The system consistently follows the rules which are related to a transaction. All of these rules are checked properly by the system before the transaction is completed.</p><p>Examples include: Rules like Daily withdrawal limit, Actual account Balance, Correct PIN, etc should be followed to complete a transaction at an ATM machine.</p><h1><strong>Isolation (Simultaneously & Immediately)</strong></h1><p>If a transaction is completed, all the relevant entries related to the transaction are automatically processed. </p><p>Eg: When the ATM dispenses cash, the relevant user account is simultaneously and immediately debited.</p><h1><strong>Durability (once done can't be undone)</strong></h1><p>A TPS system is such that once a transaction is complete, it can not be undone. A user can not undo the transaction after the ATM has dispensed the cash. </p><p>Durability also means that once the transaction is completed, a log is generated by the system so that in the event of system crashes, all the entries made by the system can be retrieved from the log.</p><p><br></p><p><br></p><p>So, this is what a TPS is all about. If you have any questions, feel free to comment</p><p>Thank You</p>

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Transaction Processing System