What is a Transaction Processing System?
A Transaction Processing System (TPS) is a sophisticated information system that enables firms to manage real-time transactions. It captures, processes, and stores every transaction within an organization, ensuring data integrity and providing rapid responses. TPS can handle batch processing or real-time processing, offering reliability, efficiency, and accurate transaction processing. It is pivotal for managing business transactions securely and maintaining seamless operations.
Key Takeaways:
- Transaction Processing Systems capture, process, and store transaction data in real-time.
- TPS can handle batch processing or real-time processing, offering reliability, efficiency, and accurate transaction processing.
- Benefits of TPS include increased efficiency, improved accuracy, cost savings, and scalability.
- Drawbacks of TPS include susceptibility to system failures, limited scalability, security vulnerabilities, and cost and maintenance challenges.
- Examples of TPS include banking ATMs, stock exchanges, and airline reservation systems.
Table of Content
- Types of Transaction Processing Systems
- Components of Transaction Processing System
- Characteristics of Transaction Processing System
- Benefits of Transaction Processing System
- Drawbacks of Transaction Processing System
- Examples of Transaction Processing Systems
- Transaction Processing System – FAQs