Term

What is Transaction?

2 MIN READ

Transaction

A transaction is an arrangement between a seller and a customer to exchange products, services or financial instruments. In simple words, when a person A gives person B some money for a product K, it is called a transaction.

The term “transaction” is used in e-commerce relatively recently and came here from the banking sector, where it actually means the transfer of funds from one account to another one.

Transactions are made in two ways:

  • Online transactions – in this case, debiting, crediting, issuing funds are made in real time, for example, ATM transactions
  • Offline transactions – there is no direct connection between the participants in the process, and operations are made after some time.

Online transactions are protected (secured) and require prior authorization. In the process of performing an operation, an authorization code and a transaction number are assigned for every transaction. The transaction itself has only two states: completed or not completed.

If you have any trouble with your transactions, you can always call the support service of the transfer system you use (usually it works 24/7) to ask a specialist how to “freeze” the transfer, or correct it.

 

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