Transaction Processing System (TPS) is a type of system used by businesses to process routine transactions quickly and accurately. It helps record, store, and manage daily operations like sales, payments, and inventory updates.
Major Characteristics of TPS (Transaction Processing System)
1. Speed and Accuracy
A TPS processes transactions quickly to ensure smooth business operations. It reduces manual work and minimizes errors, making transactions efficient and reliable.
2. Reliability
The system must operate continuously without failure, as businesses depend on it for daily transactions. Even a small error can cause issues in financial records or inventory management.
3. Automation
TPS reduces manual effort by handling repetitive tasks automatically. For example, when a customer buys a product, the system updates the inventory and records the sale without human intervention.
4. Real-time Processing
Many TPS systems process data instantly, ensuring that information like account balances, stock levels, and payments are always up to date. This is essential for businesses like banks and retail stores.
5. Security
Since TPS handles sensitive information such as financial transactions and customer details, it includes security measures like encryption and authentication to prevent fraud or unauthorized access.
6. Scalability
A good TPS can handle a growing number of transactions without slowing down. Businesses need a system that can support their expansion and increasing transaction volumes.