Some maintain the details of the transactions processed dally and some process real-time transactions. These systems constantly communicate with the database and update the details on day-to-day basis. (Valhalla, George and Hoofer, 2006) TIPS: Transaction Processing System Definition: A transaction processing system is a business system that collects, modifies and retrieves the data, stores the modified data in the business enterprise before it is used in an information system. 2014) (Obstreperousness. O. UK, In other words, TIPS process the details of the necessary Information that is needed to update the data operations of an organization under Its norms and to reduce the time taken In processing day-to-day transactions. Features: A commercial enterprise must be able to successfully process transactions to ensure that the requirements of customers, clients, partners and employees are met on time satisfactorily. Hence, transaction processing has become an integral part of effective business management.
TIPS also ensures rapid and smooth flow of data in and out of the system without leaving the system in an unstable state throughout the organization. (Obstreperousness. Co. UK, 2014) TIPS consequently handles information subject to business and its transactions. Data about every transaction Is caught, confirmed transactions are stored and others are credited and rejected. Mostly, reports may be produced at ongoing or may be exchanged to different processes to handle parts of business movement. TIPS has to process data rapidly to ensure smooth flow of data In progression throughout the enterprise.
For this, TIPS will exhibit the following characteristics: With the advancement in technology, the customers demand prompt action anytime they need. Hence, TIPS are designed to process transactions promptly and effectively to ensure data is available to the customers as and when they require and to the processes that require it. Reliability TIPS are designed to safeguard and recover from disasters which may be initiated by system failure and inconsistency with the help of system recovery mechanism. These mechanisms make sure that the data is safe and not corrupted when natural and technical disasters happen.
Standardization Every organization maintains a standard for its transactions based on the system and the processes. Different types of businesses have different processes. Hence, transactions must be streamlined and processed in a standard fashion for all departments to maximize efficiency and result in identical data for every transaction sugarless of the customer interference. Controlled Access Access must be provided to only those employees who require their use. This is called controlled or restricted access which ensures that the departments that do not require or are not capable of using the data must not have access to it.
This avoids unauthorized access to data and violation of the rules of the organizations. For this reason, systems have a facility to authenticate the user with the credentials using a unique pass access. (Obstreperousness. Co. UK, 2014) The main objective of TIPS is to intro the execution of a set of simultaneous transactions to simplify day by day transactions and in this manner lessen the workload. TIPS should likewise have the capacity to multicast when there are various processes that run simultaneously.
Application of Transaction Processing System: TIPS is used in retail, logistics, banking, hospitals, IT companies and many more. The procedures and the rules are generalized for most of the sectors. In Banks, TIPS is applied in a number of processes. These processes use TIPS to an optimum level to make sure that the transaction is stable, quick and error free. Earlier, there were Just couple of transactions that banks had the capacity perform. Banks were utilized just to store the cash an individual had at hand. A man would go to the bank, store the cash in his account and save it.
With the introduction of savings accounts, a customer had the privilege to earn interest on the money he saves. Transferring money from one person's account to another person led to the introduction of cheeses. With the revolution of computer and network technology, Banks have ended up becoming more than simply what its definition regards it to be. With the advancement in technology, and introduction to more sophisticated inking, introduction of plastic money was revolutionized with credit and debit cards because of which, the customer didn't need to carry money as currency with them.
ETC (Electronic Data Capture) machines recognizes the bank account and accept the payment with the help of a black magnetic strip on the back-face of the cards. Customer presents the card to the merchant for billing the purchase. Merchant swipes the card in the slot on the machine. Once the card is swiped, ETC machine captures the information linked to the card. This includes the card name, card number, transaction amount, etc. It also records the name of the merchant and the details of the transaction. The information so captured is transferred to the bank for authorization using the telephone line or wireless internet.
Once the authorization completes, the amount is transferred to the merchant's account. (Disestablishment. Com, 2014) With the introduction of the Internet and eventually mobile Internet and smart phones, transaction processing in banks has made the life very easy for the customers. Internet Banking Banks have designed the internet banking in such a way that it conveniences the customers to manage their accounts at the comfort of their home anytime. Additionally, special attention is laid on the ease of use of the interface with simplicity.
This technology makes managing an account exceptionally advantageous in saving customers' time. Banks have also made sure that the services on the internet are 100% safe. There is optimum security on the internet by the use of a pass code for the customer to login. In Internet Banking, the customer has access to a number of processes to ease the use of basic banking transactions. Banks have also made sure that the systems are fairly easy for the customer to navigate and perform the transactions. Consider the case of a simple funds transfer process.
Here, the customer is able to perform two major kinds of transfers; namely, transfer of money between the customer's accounts and transferring the funds to another person's account to another bank. To transfer the between the accounts, after logging in to the account the customer is able to see both the accounts he has. Then, he selects the account he needs to make a transfer from and clicks transfer. The transaction completes in a couple of seconds. To transfer the funds to another person's account, the customer needs to enter the destination account number and branch code.