3.4 Electronic Monetary Processing

Overview Demonstrate and apply knowledge and understanding of: − EFT and identify the advantages and disadvantages to the customer and the vendor − the operation of a typical ATM in terms of facilities offered − a typical POS system used in a supermarket − the use of chip and pin − the use of barcode technology

Electronic Funds Transfer Advantages to customer Can work with different currencies easily Do not have to carry as much cash around Can obtain cash back from an EFT transaction Disadvantages to customer Money is removed from the account straight away

Electronic Funds Transfer Advantages to vendor Payment is guaranteed Less handling of cash and chance of robbery Reduced forgery incidents Disadvantages to vendor Equipment is expensive Specialised equipment is needed Transactions sometimes do not go through until the end of the day

ATM Features Can withdraw cash Change a PIN View/print a statement View/print a balance Order a cheque book

EFTPOS A checkout connected to a computer with a bar code reader that can transfer money from customer accounts to pay for the goods

Chip and pin Can store more data than a magnetic stripe Information on the chip can be processed

Barcode technology Normally has 13 digits The thick and thin bars are read by laser Collected data is compared to the overall database and the price etc returned to the POS Contains: Product code Manufacturer code Country of origin Check digit

Acronyms ATM: Automatic Teller Machine EFT: Electronic Funds Transfer POS: Point of Sale EPOS: Electronic Point of Sale Terminal EAN: European Article Numbering PIN: Personal Identification Number EFTPOS: Electronic Funds Transfer Point of Sale

Associated words Smart card Loyalty card Credit card Debit card

Discussion “We are heading towards a cashless society.” Discuss this statement.