Definition of Online Transaction Processing

Online transaction processing, or OLTP, allows any online transaction -- financial or data-only -- to process securely and in real time.

Function

• OLTP requires secure applications to transfer private information, such as credit card numbers, personal identification and bank account records. OLTP also allows for time-sensitive data transfers that must be processed immediately.

Usage

• Institutions such as banks, stock exchanges, financial management firms and businesses that provide e-commerce solutions to clients requiring high levels of security and time-sensitive transactions prefer OLTP. Other industries that handle personal or proprietary information, such as travel, business-to-business, human resources and employee management, use OLTP to ensure data isn't banked away for delayed transfers.

OLTP vs. Batch Processing

• Batch processing stores transaction data and executes bulk requests at pre-set times or quantities. Data stored in bulk requests, however, can be more vulnerable to hacking and theft. OLTP handles each transaction request in real time and immediately, so the data goes directly from one party to the other without delay.