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A business transaction is a type of activity that includes elements of buying, selling, and marketing. The general process involves submitting an opportunity to purchase products, identifying the terms associated with that purchase, and then going through the checkout process to complete the transaction. Activities of this type are the engine of all types of commerce, allowing buyers and sellers to meet and participate in events that, ideally, benefit both parties.
The process of a commercial transaction actually begins with the efforts of the manufacturer of a good or service to attract the attention of consumers. During this phase, the emphasis is on informing potential customers of the benefits associated with the product in question. Assuming this marketing effort is successful, consumers’ attention is captured and at least a percentage of the target consumer market will express an interest in purchasing the offered good or service.
After capturing the attention of consumers, the commercial transaction moves on to the process of structuring the purchase conditions. During this phase, the buyer and seller agree on the cost of the product and how payment will be made. Depending on the exact nature of the transaction, this may involve some degree of negotiation between the two parties, arriving at a price that is acceptable to all involved. At the same time, the seller’s payment options are discussed, and it is up to the buyer to define the payment method that he considers most appropriate for the type of transaction in progress.
A final component in any business transaction is making the payment. This involves both parties to successfully complete the process. Buyers must initiate the payment method, using one of the methods accepted by the seller. Sellers, in turn, acknowledge receipt of payment and then deliver the product or service to the buyer. The duration of this phase will vary depending on the type of payment made and the nature of the product purchased. For example, an online transaction involving the purchase of a software product and payment by credit card will often result in the purchaser’s immediate ability to download the purchased product. On the other hand, a payment in the form of a check may take several days to clear the seller’s account, and the seller does not release the purchased product until the payment is verified.