Offline Transaction Processing is class or series of systems – which may or may not be linked to one another – that facilitate exchange, transaction applications and actions amongst banking institutions, merchant services providers, consumers and other related entities. As opposed to Online Transaction Processing, which is a series of systems that are truly linked together in operation amongst the aforementioned entities and is usually available instantly via the internet (allowing immediate user requests) the Offline version systems often operate discreetly on their own.
There are many a great number of offline transaction processing machines at work in today’s business environments. Some examples include electronic and laser barcode readers that are used in grocery stores for keeping track of stock, payment receipt books used in order to record sales transactions of businesses’ customers and information on their payments, and various accounting software applications and such other software used – like Microsoft Excel – to calculate the various accounts required of any viable company. These transaction machines largely support the business at hand and all of their customers since they document most of the exchanges that take place.
The devices that support offline transaction processing usually work with no internet access (or at least not constant internet access) while they are in process. Offline transaction processing machines are mostly essential for daily merchant or banking operations, similar to online transaction processing. There are, however, some disadvantages of offline transaction processing machines compared to their online counterparts, such as accuracy, speed and the number of transactions processed in any given time period.
Both offline and online transaction processing machines are valuable and helpful but indeed have their limits. Online data processing machines, when not maintained and updated well with substantial security measures, can easily become vulnerable to hacking by computer pirates seeking to intervene in merchant activity or steal assets. Offline transaction processing devices have greater chances of error, mainly due to greater human involvement but largely because the systems are fractured or do not overlap comprehensively. In many instances, it is best to choose online transaction processing machines over offline transaction processing machines to maintain a competitive edge due to their ease of use and the immediate access both merchants and banks have to the precious information that supports business worldwide.