ISM

ASSIGNMENT -3

TPS

Submitted By:

Dhanusha R V 23AA04
Puviyarasan G 23AA25
Sandhyaa C 23AA28
Sanjay PS 23AA29
Vinoth Kumar V 23AA44
 TRANSACTION PROCESSING SYSTEM
1.User Initiates Transaction:
➢ You insert your debit or credit card into the ATM and enter your Personal
Identification Number (PIN).
➢ The ATM's TPS reads your card data using a magnetic stripe reader or chip reader.
2. Secure Communication:
➢ The TPS encrypts your card data (account number, PIN) to safeguard sensitive
information.
➢ It transmits the encrypted data securely (usually via a dedicated network) to a host
server. This server acts as an intermediary between the ATM and your bank.
3. Authorization Request:
➢ The host server communicates with your bank (the issuer of your card).
➢ It sends the following information for verification:
* Encrypted card data
* Transaction type (e.g., withdrawal)
* Requested amount
4. Bank Verification:
➢ Your bank performs several checks to ensure the transaction's legitimacy:
* Card Validity: Verifies if the card is active, not reported lost or stolen, and hasn't
expired.
* PIN Verification: Compares the entered PIN with the one on file for your account.
* Available Funds: Checks if your account balance has sufficient funds to cover the
transaction.
* Fraud Prevention: Analyzes the transaction for suspicious activity patterns. This
might
involve comparing it with your usual spending habits or location data.
5. Response from Bank:
➢ Based on the verification results, the bank sends an authorization message back to
the host server:
* Approved: The transaction can proceed.
* Declined: The transaction is denied, with a reason displayed on the ATM screen
(e.g., insufficient funds, invalid PIN).
6. Transaction Completion or Notification:
If approved:
* The ATM dispenses the requested cash amount.
* The TPS updates your account balance and records the transaction details for future
reference.
* You might receive a receipt for the transaction.

If declined:
* The ATM informs you of the decline and may suggest contacting your bank for further
information.