Transaction processing systems (TPS) perform routine business operations like processing customer orders, payments, and payroll. There are two types of TPS: batch processing, which accumulates transactions and processes them in batches, and online transaction processing (OLTP), which immediately processes each individual transaction in real-time. TPS ensure data integrity as transactions are completed, updating the relevant databases. The processing cycle involves inputting transaction data, maintaining databases, generating documents and reports, and allowing for inquiries. TPS provide operational support for core business functions.