Abstract: A transaction handling system (THS) for use in a cellular telephone network using Short Messages is described. The THS comprises means for receiving digitally encoded information from one or more sources, such as magnetically encoded credit card information related to credit cards, smart cards, bar codes etc. Means are provided for interpreting the digitally encoded information into a message compatible with a particular database relevant in the transaction and formulating a query to the database. The query is routed to the database. Upon receiving a reply from the database, the reply is interpreted in the THS for compatibility with the cellular network and the structure of the Short Messages within it, and routed to a terminal having a display, printer or other input/output means.