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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.
Most transaction processing systems also include a method of ensuring that all the information entered as a transaction is simultaneously saved. When a large number of transactions are taken and then stored to be dealt with at a later time, the process is known as batch processing.elated Terms: Internet Payment Systems. Transaction process is a term that refers to the adding, changing, deleting, or looking up of a record in a data file or database by entering the data at a terminal or workstation.