Transacting

Transacting refers to the act of engaging in a transaction, an agreement between two or more parties to exchange something of value, such as money, goods, or services. Transactions may occur in person, online, or through automated systems, and they are typically documented for accountability and record-keeping.

In commerce, a transaction usually involves offer and acceptance, transfer of ownership or delivery of goods, and consideration. Records capture the terms, amount, and parties involved, enabling accounting, taxation, and auditing.

In information systems and finance, a transaction is a unit of work that must be completed in full or not at all to preserve integrity. Traditional database transactions follow ACID properties: Atomicity, Consistency, Isolation, and Durability. Distributed transactions may require coordination protocols such as two-phase commit to maintain atomicity across systems.

Common stages of a transaction include initiation or request, authorization or approval, processing, settlement or fulfillment, and reconciliation. Financial transactions often involve clearing, settlement between institutions, and post-settlement dispute handling.

Transactions vary by type and context. Financial transactions include payments, transfers, trades, and loans; commercial transactions cover purchases, sales, leases; non-financial or data transactions involve updates, transfers of digital licenses, or changes to records. Digital platforms enable transacting through electronic payments, card networks, wallets, or blockchain-based methods and smart contracts.

Risks and controls: Fraud, counterparty risk, settlement risk, liquidity considerations, and regulatory compliance must be managed with security, transparency, and audit trails.