Transaction - Term Overview

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The meaning of transaction is the operation of a different type that is carried out between two or more parties and that implies the exchange of goods or services in exchange for the corresponding capital. The term transaction can be used in different areas of everyday life, but it's generally used for operations of an economic nature that involve the use of money to defray the cost of a service or good purchased.

One of the aspects that most characterizes the transaction is that there is a common idea between the parties that carry out the operation. In order for this to be done, it will be necessary to have a capital and someone to provide a service or that is adjusted to the amount claimed.

The most common is that the transaction is developed by the need of one or both parties, and usually ends up generating profits. While it takes many styles and forms, the concept of transaction will entail an exchange.

There is another definition of a transaction that is totally unrelated to buying or selling operations. And it's the term used in the banking sector, where many operations are called transactions. They are usually those actions that a client executes to reorganize, invest or know their capital.

Transactions are also used in other areas such as computing or law. In the first case, secure electronic transactions were designed at the request of companies such as MasterCard and Visa with the aim of providing greater security to users when entering their bank details on the Internet. Over the years it would end up falling into disuse to the detriment of other systems such as 3-D Secure and all electronic banking systems. In law, a transaction is understood to be the bilateral legal act that consists of the extinction of doubtful obligations through reciprocal concessions made by the parties.

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