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:
• EFT:
Automatic Teller Machine
Electronic Funds Transfer
• POS:
• EPOS:
Point of Sale
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.