A transaction processing system (TPS) collects, modifies, and retrieves business transaction data to process orders. A TPS ensures performance, reliability, and consistency. An order fulfillment process in a TPS includes submitting an order, checking credit, generating an invoice, approving credit, assembling the product, shipping it, and generating sales and accounting records. Parties involved in a transaction process are the cardholder, card issuing bank, merchant acquiring bank, merchant, merchant account, credit card association, and transaction network.

1. APPLICATION OF
TRANSACTION
PROCESSING SYSTEM
Dhwani Ojha

2. 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.

3. ORDER FULFILLMENT PROCESS
Submit
order
Check
credit
Generate
Invoice
Approve
credit
Assemble
Product
Ship
Product
Generate
OrderSales
Accounting
Manufacturing
&
Production

4. PARTIES INVOLVED
Card 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.

5. 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
Association
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

6. TRANSACTION PROCESS
Authorization
Clearing &
Settlement
FundingBatching
CHARGEBACK