What Is A Transaction Processing System?

The cash machine is the everyday example. One user, one transaction, an answer straight away. The contrast with how the alternative works explains why it feels different.

A transaction processing system, usually shortened to TPS, is a kind of information processing system. Its job is to handle all the transactions moving into and out of a business.
The defining feature is that it takes them one at a time, in turn.
The cash machine
An ATM is the example everyone has used. It serves one person at a time, completes what that person came to do, and then moves to the next.
One thing is worth clearing up about the word transaction. In this context it does not only mean something financial. A request for information counts as a transaction too. The system is not defined by money changing hands, it is defined by handling one request through to completion.
The other way of doing it
The direct contrast is a batch processing system, which collects many transactions and processes them together as a batch.
Neither is simply better. They answer different questions. A batch system is efficient when a large number of similar items have to be dealt with and nobody is standing there waiting. A transaction system is what you want when somebody is standing there waiting.
An analogy from a download
Think of a torrent file attached to a folder of files. You cannot open any one file until the whole folder has finished downloading. Everything is held until everything is ready.
Transaction processing behaves the other way round. Results arrive in real time, one completed item at a time, which is what makes it convenient and what keeps it from becoming confusing.
Why the distinction is worth carrying
Because you meet it constantly without naming it. Your card payment clears while you stand at the counter. Your payslip is produced overnight with everybody else’s.
One of those is a queue of one. The other is a pile dealt with at once. Knowing which kind you are dealing with explains most of what people find frustrating about waiting for a system to answer them.















