6.9 : Computers in the retail industry

Question 1

where are computers used in the retail industry

Answer 1

• at the point of sale ( POS )terminals ,

- automatic stock control system

Question 2

what are Barcodes ?

Answer 2

• barcodes now appear on most product sold in shops , they allow for quick identification of details of the product that has been scanned by a barcode reader.

Question 3

how are barcodes used in supermarkets ?

Answer 3

• supermarkets use POS terminals to incorporate a barcode which can be scanned by a barcode reader and retrieve the price of the item and it also sends back information to the computer allowing it to update its files

Question 4

what makes a barcode ?

Answer 4

-barcodes are made up of vertical dark and light lines of varying thickness . It has a number underneath usually consists of four parts : country code , manufacturer code , product code and a check digit .

Question 5

what is a check digit ?

Answer 5

• its to validate that there were no errors in the process of reading the barcode

Question 6

write the sequence of how barcodes and POS terminals are used in the automatic stock control ?

Answer 6

• barcodes are attached to all items sold by the supermarket
• each barcode is associated with a stock file in the database and contains details like : the price , stock level , and a description about the product , the barcode will act as the primary key into these files.
• a customer will take their basket / trolley to the POS when they are done shopping the barcode of each item is then scanned , if the barcode cannot be read then the EPOS operator will need to key it in manually.
• the computer will keep searching until a match has been found
• the correct file is then accessed
• the database then sends information about the price and the product description to the terminal
• and the stock level is then decreased by one and a new number is calculated
• if the number reaches the minimum / re-stock level then the computer will automatically order supplies from the supplier
• when the shipment arrives the barcode is used to update the stock level
• at the end the customer is given an itemised bill containing the final price and the price of each product they bought
• if the customer has a loyalty card then the points will be updated automatically

Question 7

what does POS stand for ?

Answer 7

• Point of sale

Question 8

what is a POS ?

Answer 8

• is the place where a transaction happens , customers can pay by cash or using their debt/credit card and the stock level will be updated automatically when an item is bought at the POS.

Question 9

what does EFTPOS stand for ?

Answer 9

• Electric funds transfer at the point of sale

Question 10

what is EFTPOS ?

Answer 10

• when a payment is made by a card or an electronic device such as a mobile phone at the POS terminal , it is called electric funds transfer at the point of sale

Question 11

where does the communication between the EFTPOS and the bank happen ?

Answer 11

• secure connection over the internet

Question 12

how is EFTPOS done ?

Answer 12

• the customer will give their card to the cashier at the POS
• the cashier will insert the card into the chip and pin reader and confirms the value of the purchase
• then the customer will be requested to write their PIN , if it is the same one as the one on the chip then the transaction can continue
• the shop’s computer will use the account details on the chip to connect to the customer bank account and check their balance
• if they have sufficient amounts then the amount is subtracted from the customer bank account and deposited in the shop’s account and a bill is printed
• the cashier will then give the card back to the customer alongside with the bill printed.

Question 13

what is scanned if the PIN turns out to be correct ?

Answer 13

• it will be checked for validity and if the card has expired or if it has been stolen.

Question 14

what happens of the funds required is not available ?

Answer 14

• a declined massage will be sent to the shop’s computer and the customer will be asked by the cashier for another method of payment

Question 15

how does a payment of Chip and Pin will be carried out ?

Answer 15

the card will be inserted into a reader , the reader will make connection with the chip embedded in the card and then the PIN is entered this will act as a security check , then the PIN and other encrypted data is sent to the customer’s bank , then if everything checks out such as ( if the card has expired or stolen ), and if he has sufficient funds the transaction is approved and an authorisation code is sent back to the terminal and the funds are transferred to the supermarket’s bank

Question 16

Advantages of Chip and Pin cards ?

Answer 16

• they are more secure than magnetic stripe as there is a PIN which needs to math the one stored on the chip
• it is a quicker system and allows for contactless payment