Online Transaction Processing Flashcards, test questions and answers

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What is Online Transaction Processing?

Online Transaction Processing (OLTP) is a type of business process used to facilitate the exchange of goods and services via the internet. It is a short-term, single-phase transaction that involves two or more parties exchanging information over an online network such as the internet. The purpose of OLTP is to provide a secure and efficient way for customers to conduct their transactions with businesses, government agencies or other entities.A typical OLTP system consists of three components: user interface, database and application layer. The user interface provides all necessary information to the customer. This includes entering order details, selecting payment methods, placing orders and viewing product inventory. The database allows for storing all entered data such as customer information, order details and payment histories in an organized manner. Finally, the application layer links all components together by providing a secure connection between customers and businesses for conducting transactions.In terms of security measures taken during OLTP transactions, businesses use encryption technology to protect customer data from being accessed by unauthorized individuals or organizations. Additionally, authentication protocols are used for verifying users’ identities before allowing them to access any sensitive information associated with their accounts. These measures are designed to ensure that only authorized personnel gain access to the system data and processes required for successful completion of online transactions. The advantages offered by OLTP include increased efficiency in processing payments from customers; reduced costs associated with manual processes; improved accuracy in recording financial records; quicker response times when dealing with customers’ queries; and improved security surrounding customer data protection. Furthermore, this form of electronic commerce also helps businesses gain insights into their customers’ behaviour through tracking buying habits which can then be used for targeted marketing campaigns or developing new products/services tailored specifically towards those needs expressed by their target audience through purchases made on their platform/website.