Transaction Processing Systems

Transaction Processing Systems

Transaction Processing Systems
Transaction processing is supported by programs that are called transaction processing systems.
Transaction processing systems provide three functional areas:
System runtime functions
Transaction processing systems provide an execution environment that ensures the integrity, availability, and security of data. It also ensures fast response time and high transaction throughput.
System administration functions
Transaction processing systems provide administrative support that lets users configure, monitor, and manage their transaction systems.
Application development functions
Transaction processing systems provide functions for use in custom business applications, including functions to access data, to perform intercomputer communications, and to design and manage the user interface.
The services of a transaction processing system runtime environment include the following:
Scheduling and load balancing. Controlling the rate and order in which tasks are processed to give higher-priority tasks the best response times and to adapt to the availability of application servers and other system resources.
Managing system resources. Maintaining a pool of operating system resources to be used for transaction processing, loading application programs, and acquiring and releasing storage.
Monitoring. Monitoring the progress of tasks, suspending those waiting for input, adjusting task priorities, and resolving problems.
Managing data. Obtaining required data needed by tasks, coordinating resource managers (such as file servers and database managers), locking data for update, and logging changes.
Managing communications. Monitoring communications with users and between servers and other systems, starting communications sessions as needed, managing data handling and conversion, and routing data to the right destination.
Time management. Managing transaction processing in relation to the passage of time, starting tasks at predefined times, logging the date and time of events onto disk, and regularly controlling part of the business system to provide degrees of automation.
Services for systems administration and application development are described in subsequent sections.
How Does Transaction Processing Systems Works?
Transactions from ATMs in the United States go first to their own processor (the Acquirer). From that point, the connections branch out to different networks, issuing financial institutions, and sometimes other processors.
Each processor's data configuration is slightly different from the other. The route the transaction takes can vary considerably.In the end all transactions must make it to the card-issuing financial institution and back again. For this reason, ATM cardholders can use their cards almost anywhere in the United States.
We can thank the transaction processors for this remarkable state of affairs, because, one way or another, they have chosen virtually all of the networks to be their partners.
At the top of the "pyramid" are national networks Plus (Visa) and Cirrus (MasterCard), in addition to Discover and American Express. At the next level there are networks such as NYCE, Jeanie, Star (East and West), Mac, Quest, Pulse and others.
There are other, more specialized, networks that use the magnetic stripe card. One example is the Armed Forces Financial Network (AFFN). This extensive network serves all members of the U.S. military. President of Western Reserve Processors Mike Stevenson says there are approximately 200 different card issuers that will only be accepted on terminals on which the AFFN works.
In addition, there is the U.S. government Electronic Benefits Transfer (EBT) network that delivers food stamps and cash benefits, like Temporary Assistance to Needy Families (TANF). As states consider additional programs, such as Social Security and Unemployment Compensation, which could be delivered with the same card, the EBT is rapidly changing to the Electronic Services Delivery (ESD) system.