APPLICATION OF TRANSACTION PROCESSING

SYSTEM

Dhwani Ojha

WHAT IS TPS?

A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency.

ORDER FULFILLMENT PROCESSSubmit order

Check credit

Generate Invoice

Approve credit

Assemble Product

Ship Product

Generate Order

Sales

Accounting

Manufacturing&

Production

PARTIES INVOLVEDCard

Holder The holder of the card used to make a

purchase; the consumer.

Card Issuing Bank

The financial institution or other organization that issued the credit card to the cardholder.

Merchant

Acquiring Bank

The financial institution accepting payment for the products or services on behalf of the

merchant.

The individual or business accepting credit card payments for products or services sold to

the cardholder.

Merchant Account

This could refer to the acquiring bank or the independent sales organization, but in general

is the organization that the merchant deals with.

Credit card Associatio

n

An association of card-issuing banks such as Discover, Visa, MasterCard etc. that set

transaction terms for merchants, card-issuing banks, and acquiring banks.

Transaction Network

The system that implements the mechanics of the electronic transactions.

PARTIES INVOLVED Contd

TRANSACTION PROCESS

Authorization

Clearing & Settlemen

tFundingBatching

CHARGEBACK