transaction

tran-ZAK-shun /trænˈzækʃən/
nounB1
neutral

An instance of buying or selling something; a business deal; an exchange or interaction.

In finance, it's any movement of money into or out of an account, or an agreement between parties.

The story behind the word. The word 'transaction' comes from the Latin 'transactio', meaning 'an agreement, accomplishment'. It's formed from 'trans-' (across) and 'agere' (to do, drive). So, a transaction is literally 'doing something across' or 'carrying through' a business deal or exchange.

Word relationships

  • deal: A deal is often a broader agreement; a transaction is the specific act of carrying it out.
  • exchange: Exchange implies a reciprocal giving and receiving; transaction can be a one-sided action like a deposit.

Word family

  • transact (verb): to conduct or carry out (business).

Collocations

  • financial transaction
  • bank transaction
  • card transaction
  • complete a transaction
  • secure transaction

Example sentences

  • "Her bank statement showed several transactions, including deposits, withdrawals, and card payments." Reviewing bank activity.
  • "The real estate transaction was finalized after months of negotiation." A business deal.

Memory hook

A TRANSACTION is an action that goes TRANS- (across) between two parties. ACTION across

When not to use

Do not use 'transaction' for a simple discussion or interaction that doesn't involve an exchange or deal.

Fun facts

  • The prefix 'trans-' appears in many English words, often indicating movement 'across' or 'through', like 'transport' or 'translate'.
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