What is the transaction processing system? What does a transaction server do? What components does the transaction server consist of? What are the features of a well defined TPS? What is an Online Transaction Processing System? How does an OLTP enhance the data integrity of the data being processed?
A TPS or a Transaction Processing System or a transaction server is a software and hardware combination or a software system that supports transaction processing. It gathers and stores data related to transactions and occasionally it manages the decisions made as part of a transaction. A transaction is the activity or the action that modifies stored data.
Examples of a transaction is when you use your credit card, making cash withdrawal from an ATM, or making a reservation. There are 2 types of transaction processing: batch transaction processing, and real time transaction processing. In batch transaction processing, the information collected and stored are not immediately processed. An example is when you pay cheques in a banking system.
In real time transaction processing, the information collected and stored during the transaction is processed right away and the operator has access to online database. An example for this is when you withdraw from your bank account. American Airlines SABRE system was the first transaction processing systems which became operational in 1960.
