A transaction processing system (TPS) is a type of information system that manages and records daily transactions in an organization. These systems ensure that transactions are processed accurately and efficiently, often in real-time. Common examples include point-of-sale systems in retail and online banking systems, which handle sales, deposits, and withdrawals. TPS typically consist of hardware and software components that work together to capture, store, and retrieve transaction data. They are crucial for maintaining data integrity and supporting business operations. By automating routine tasks, TPS helps organizations improve productivity and reduce errors in transaction handling.