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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.
A TPS can process transactions in two ways: batch and real time. With batch transaction processing, the system gathers transactions over a period of time and processes them all at once. For example, a payroll TPS gathers employees' hours for two weeks and then processes all the hours in one batch to calculate paycheck amounts. In contrast, with real-time processing, the system processes a transaction immediately. For example, when a traveler reserves a seat on a flight, a TPS uses real-time processing to reserve the seat immediately so that no one else can select it. Learn more about Software