Online-Academy
Look, Read, Understand, Apply

TPS with examples

What is a Transaction Processing System? Provide some examples of TPS.

Answer: A Transaction Processing System (TPS) is designed to process routine transactions efficiently and accurately. TPS is used by operational level staffs to ease their tasks and activities. TPS is responsible for collection more than ninety percentage of data in the organizations. Failure of TPS of few hours may result in heavy lost for organizations. Here are some common examples of TPS along with their inputs and outputs:

Point of Sale (POS) Systems are used in Retail Stores to capture sales data. Inputs provided to the POS are as follows:

  • Product barcode/ID
  • Quantity of products purchased
  • Price per unit of product
  • Payment method used (cash, credit card, etc.)

Outputs produced by those systems are as follows:

    Sales receipt
  • Updated inventory levels
  • Sales report for management

ATM (Automated Teller Machine) System of banks used for banking transactions like withdrawing money, printing statements etc. Inputs to these kinds of Systems are as follows:

  • Customer’s card details like bank name, card number, expiry date
  • PIN (for authentication)
  • Transaction type (withdrawal, deposit, balance inquiry)
  • Amount entered

Outputs produced by those systems are as follows:

  • amount of Cash dispensed (for withdrawals)
  • Updated account balance
  • Transaction receipt

Online Banking System which is used for online payments. Inputs to these kinds of systems are as follow:

  • User login credentials like user id and password
  • Transaction details (transfer amount, recipient account)
  • Bill payment information

Outputs produced by those systems are as follows:

  • Confirmation message
  • Updated account statement
  • Electronic receipt

Airline Reservation System is used for selling air tickets. Inputs for these kinds of systems are as follows:

  • Flight details (destination, date, class)
  • Passenger information (name, contact)
  • Payment details

Outputs produced by those systems are as follows:

  • Booking confirmation (e-ticket)
  • Updated seat availability
  • Boarding pass

Payroll Processing System used to track payment made to employees. Input for this system:

  • Employee work hours
  • Salary rates
  • Tax deductions
  • Benefits information

Outputs of this system are as follows:

  • Paychecks (or direct deposits)
  • Tax filings
  • Payroll summary report

Inventory Management System is used to manage and keep track of inventory in organizations. Inputs to inventory mgmt sys are as follows:

  • Product ID
  • Quantity received/sold
  • Supplier details

Outputs of Inventory Mgmt sys are as follows:

  • Updated stock levels
  • Reorder alerts
  • Inventory valuation report

Credit Card Processing System is to keep of credit card payments. Inputs to this system are as follows:

  • Cardholder details
  • Transaction amount
  • Merchant information

Outputs of credit card processing system are as follows:

  • Approval/decline message
  • Billing statement
  • Fraud detection alerts
Main Characteristics of TPS are as follows:
  • Real-time processing (e.g., ATM withdrawals)
  • Batch processing (e.g., end-of-day sales reports)
  • Ensures data integrity & accuracy
  • Supports high-volume, repetitive transactions