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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.
Also found in: Financial, Acronyms, Wikipedia. An action taken in the course of conducting business. Whether manual or automated, all processes require input and generate output. Depending on the level of viewing and modeling, a process can be a single task or a complicated procedure such as building a product. A business information system process typically means updating a database from a transaction such as an order or application form (transaction vs. master). See transaction, business process modeling, business processing and information system.