Transaction: what is this?
We often hear such a term as a transaction. What does this concept mean? As a rule, it means the transfer of funds, but there are other interpretations of this definition.
Consider in which areas the concept of transaction can be used.
The concept of a transaction
In computer science, a transaction is a groupoperations, which are reviewed and processed simultaneously. In this case, this procedure is necessary to compile a DBMS in which a transaction allows executing commands simultaneously, for example, marking an error and then writing it to the database, which is essentially an automatic logging of actions.
In physics, a transaction is a keythe concept of quantum mechanics within the framework of the interpretation proposed by John Kramer and is an explanation of quantum interactions in a standing wave.
In this area, the transaction is a fact of the transfer of information between two persons. That is, a dialogue or established communication contact.
In economics, when speaking of a transaction, they usually havekind of banking. Under the banking transaction is a kind of contract, which involves an operation relating to the customer's account. At the moment, transactions are divided into offline and online types. Consider this type of transaction in more detail.
The transaction can be initiated with the help of a written instruction or with the help of an electronic order, via Internet banking. A transaction has two states: executed or not.
As a rule, the banking transaction is carried outwith the help of a payment card. To implement the transaction, a payment terminal is required, payment can occur both independently and with the help of an employee. A terminal that has a sales outlet at its content or a company providing commercial services must be registered with an acquiring bank that will service this terminal.
During the transaction, the dataare read from the payment card and enter the operation center. The data is read out in the payment system, in which the acquiring bank and the participating bank are identified, the client of which is the card holder. The most common payment systems now are Visa and MasterCard.
How does a bank transaction occur?
- The payment system needs to check the card number, namely to scan it to see if it is in the stop-list.
- After receiving a positive request, the payment system sends a request to the issuing bank that issued the card.
- The issuing bank sends this request to theAuthorization center, in which the card will be tested for the legality of the transaction. This is done for the purpose of preventing fraud and checking for violation of the terms of the service contract.
- After that, the PIN code entered by the cardholder is checked, as well as checking the balance of the account or, if the card is a credit, the payment limit.
- If all the verification steps have been successfully completed, the issuing bank sends the request through the payment system directly to the outlet.
- Further, the issuer's bank makes settlements with the acquiring bank, which is the holder of the terminal: the payment system receives a commission for its use.
- Further, the funds are debited from the customer's payment card. This completes the transaction.
Now consider how an offline transaction occurs.
- An offline transaction occurs without contacting the acquiring bank.
- Money simply remains on the account of the terminal, the holder of which is the acquirer-bank.
- The funds are debited from the customer's accountinstantly, and money from the terminal goes to the account of the acquiring bank after the terminal is connected to the communication channel for information transfer. An example of such an offline system is the payment system Sberkart.
- The advantages of such a system are that it excludes delays in accessing an acquiring bank, which, in fact, does not happen, unlike the case with an online transaction.
- Thus, the cardholder whocarries out an offline transaction, minimizes the risk of losing time and receiving a refusal from the acquiring bank, the reason of which may be not in its card, but in the failure of the servicing terminal system.
Read other definitions in the Definitions section.