Transaction processing in simplest terms means keeping a record of all individual and collective transactions, those that are successful and those that fail. In modern business times these are done over software. Transactions are binary in nature – never half complete. For instance when you buy a coffee, you pay the money or credit card and if it is accepted the transaction is complete and if it is not accepted the transaction is not complete. The technology that keeps the record of transactions is called transaction processing.
Transaction processing links multiple individual transactions into a single transaction while ensuring against errors. It also ensures that there is no mistake in calculations either because the data oriented sources are not updated until all operations of the transaction are completed successfully. Through this software, the chances of any monetary or operational mistakes are eliminated.
To understand transaction processing, it is important to familiarize with the basic features of transactions and how the tasks involved are carried out. The Microsoft platform describes these fundamentals with this example. “Transactions bind multiple tasks together. For example, imagine that an application performs two tasks. First, it creates a new table in a database. Next, it calls a specialized object to collect, format, and insert data into the new table. These two tasks are related and even interdependent, such that you want to avoid creating a new table unless you can fill it with data. Executing both tasks within the scope of a single transaction enforces the connection between them. If the second task fails, the first task is rolled back to a point before the new table was created.” These transactions can span across multiple data resources.
Transaction Processing Functions
Taking assistance from IBM knowledge center this time, we can see that there are three primary functions for transaction processing: System runtime functions, system administration functions, and application development functions. Runtime functions mean the availability of an environment that enables integrity and security of data. Administration functions include support for configuration, monitoring and managing of transactions. And finally development functions are the facilities in the form of business applications and communications designed custom made for the business in concern.
Transaction Processing Cycle
For every organization transactions make the core of the business activity. As the businesses grow, transactions also grow in number and volume and require a proper and smooth processing service to ensure against mistakes that can lead to financial losses as well as disruption in relations with customers and suppliers. Every company has its own modes and means for their transaction processing services, but a usual processing cycle consists of the following steps:
- Data entry – debit and credit sides of a transaction.
- Data validation – double input of data ensuring completion and accuracy of transactions
- File and data maintenance
- Report generation and document preparations
Usually there are some additional features to make transaction processing easier and convenient. One of these measures is to translate all expenses, revenues, and other transactions in the same monetary unit. This is especially true for business operating in more than one geographical region with multiple currencies. The second method is through clubbing together documents and transactions that are similar – by supplier, products, regions, and so on. The software used for transaction processing already has these built-in features that allow for this sort of categorization.
The report generation and inquiry processing parts are also included in the mechanics of the software. They are significant for more than just record keeping because they also tell about inventory levels, supply schedules, and credit limits of the business and customers, and also keeps the managers apprised of prices, delivery times, and market conditions.
Transaction Processing Outsourcing
Like all business operations that are technology and personnel intensive yet do not directly contribute to lead generations and revenues, transaction processing has also become one of the preferred activities of the business to outsource. Such external companies are immensely helpful in reducing costs and improving efficiency. At Intersoft BPO you will not only get qualified resources adept at handling transaction processing but also the latest technology for your business needs.
Among other services like advisory council and strategy building, Intersoft BPO will provide you:
- B2B and B2C collection services
- Data entry
- Billing and transcription
- Employee benefits and medical billing processing
- Operational analysis
- Report generation and communication
- Feedback on transactions and remedial strategy making if and when necessary
Outsourcing your transaction processing services will save you resources and time that you can spend on more profit making activities. Our team of experts will work as a branch of your own company, tailoring their operations to the specific needs of your business, ensuring improved efficiency, better communication and services, and eventually higher profitability and growth for your business.