Transaction processing system (TPS)

Definition

A Transaction Processing System (TPS) is an information system that collects, stores, modifies, and retrieves the transactions of an organization. It ensures the smooth execution of daily operations by processing data generated from business transactions such as sales or payments.

Related terms

Real: time processing - The immediate processing of data upon entry, which is a key feature of many transaction processing systems.

Batch processing: The collection of data over a period time which is processed all at once, often used in transaction systems for non-time-critical tasks.

Database Management System (DBMS): Software that interacts with end-users, applications, and the database itself to capture and analyze data, often utilized within TPS to manage the storage of transaction data