A Transaction Processing System (TPS) processes data transactions in a database system. It allows for a time delay between an item being sold and actually being sold, to prevent multiple customers from purchasing the same item. An example is an online bus ticket booking system, which holds the ticket while a customer fills out their information to prevent another customer from purchasing the same ticket. A TPS is an information processing system that collects, modifies, and retrieves transaction data for business transactions.

1. Pooja Kumari
Assistant Professor (Commerce)
CMG GCW, Bhodia Khera (Fatehabad)
Transaction Processing
System (TPS)

2. A Transaction Processing System is a set of information
to processes the data transaction in database system.
The system is useful when something is sold over the
internet. It allows for a time delay between when an
item is being sold and when it is actually sold. So that
other customer does not order the same.
An example is that of a online bus ticket booking. While
the customer is filling out their information to purchase
bus ticket; the transaction processing system is holding
the ticket so that another customer cannot also buy it. It
allows for a ticket not to be sold to two different
customers.

3. A transaction process system (TPS) is an
information processing system for business
transactions involving the collection, modification
and retrieval of all transaction data.
Meaning of TPS

4. Batch Processing
• Information is
processed in a batch
• Results of each
transaction are not
immediately available
when the transaction
is being entered
• Eg. NEFT
Real Time Processing
• Process individual
item rather group
• Quick response
• Eg. Online payment

5.  Performance: Depends upon number of
transaction performed.
 Continuous availability: System will be
available even if other transaction is being
processed.
 Data integrity: Data would remain same. Eg.
two users can not book same seat of PVR.
 Ease of use: It is very simple and easy to
understand thus use.
 Retrieval of information anytime: As back up
system exist.

6.  Good data placement: The database should be designed
to access patterns of data from many simultaneous users.
 Short transactions: Short transactions enables quick
processing. This avoids concurrency and paces the
systems.
 Real-time backup: Backup should be scheduled between
low times of activity to prevent lag of the server.
 High normalization: This lowers redundant information to
increase the speed and improve concurrency, this also
improves backups.
 Archiving of historical data: Uncommonly used data are
moved into other databases or backed up tables. This
keeps tables small and also improves backup times.