Transaction Processing System

Transaction Processing System

Transaction processing systems are cross functional information system that process data resulting from the occurrence of business transactions. And transactions are events that occur as parts of doing business, such as purchases, deposit etc. The system is useful when something is sold over the internet. It allows for a time delay between when an item is being sold to when it is actually sold.


  • Batch processing: Processes several transactions at the same time, with a time delay.
  • Real-time processing: Deals with one transaction at a time and does not have a time delay.

Transaction Processing System is an information processing system for business transactions involving the collection, modification, and retrieval of all transaction data. This system captures and procedure the detailed information necessary to update data on the basic operations of an organization. A Transaction Processing System is also used to collect, store, retrieve and modify transactions executed by an organization.

Some examples of transaction processing systems include:

  • Automated Teller Machines (ATM),
  • Credit Card Authorizations,
  • Online Bill Payments,
  • Self-Checkout Stations,
  • Trading Stocks Over the Internet.