The transactional model builds on the linear and interactive models by recognizing that in many communicative interactions, the speaker and listener are simultaneously encoding and decoding messages within an environment that includes the context of the situation as well as the personal and cultural backgrounds of each communicator. Thus, there is is not a delay in acting as a sender or receiver, but rather, both parties communicate (provide feedback, encode, and decode messages) simultaneously.

There are two communication models:

- The transactional

- The linear

The transactional model is bi-directional and happens, when one person or subsystem interacts and the second one interacts back.

The linear communication model happens when the sender creates a message with the correct channel code and sends it out to the audience.

Explanation:

Linear model of communication is rather basic as the sender interacts with the receiver, but transactional model builds upon it two people communicating to one another simultaneously.

The transactional model or circular model, is used for interpersonal communication the sender can encode the message in writing or as a speech, aiming to convey information to a receiver, who will decode it reading or listening, taking turns each time.

Barnlund's transactional model varies by means that it is a multi-layered feedback system. The sender and the receiver are in the same level of continuous interchange process and the feedback for one is the message for the other.