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A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.Transaction processing systems also attempt to provide predictable response times to requests, although this is not as critical as for real-time systems.he first transaction processing systems was American Airlines SABRE system, which became operational in 1960. Designed to process up to 83,000 transactions a day, the system ran on two IBM 7090 computers.
Each transaction cycle involves several events. Business Processes Three main transaction cycles: An acquisition (purchasing) cycle is the process of purchasing and paying for goods/services. A conversion cycle is the process of transforming resources acquired into goods/services.NFORMATION SYSTEMS. Central Themes of This Text Business processes Information systems Business Processes A sequence of activities: for acquiring goods and services for producing goods and services for selling goods and services Business Processes Models of business processes viewed in terms of transaction cycles.