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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.
Why Do We Need Transaction Processing? Now that you have seen what transaction processing is, we need to look at why you would want to use it in developing your application. There were a number of reasons that became evident when looking at what transaction processing is. The ability to develop applications in a single-user mode, then use the transaction processing system to scale to hundreds or thousands of users is one reason. As a matter of course, the transaction processing system also provides the support for automatic rollback of transactions that did not complete successfully.