Unit 3 Applications of ICT (Ch 12) Flashcards
What is EFT?
Electronic Funds Transfer
Customers pay for goods using credit or debit cards online; Money electronically transferred.
What is EFTPOS?
Electronic Funds Transfer Point of Sale
Pay for goods on terminal used at checkout.
Computer including barcode scanner + chip and pin terminal
What does a barcode consist of?
Digits encoded as a series of light and dark vertical bars of varying width.
- country code, manufacturer code, product code + check digit
What happens when a barcode is scanned at an EFTPOS terminal?
Barcode scanner reads barcode, barcode sent to server, computer searches stock file using barcode, when found, product price + description shows up, stock level updated + price + description printed on receipt.
What is a smart card?
Credit/debit card that contains an embedded microchip. Authenticated using a PIN.
What is a PIN?
Personal Identification Number
What happens when a smart card is used?
Card placed in a chip + PIN terminal
Terminal access contents of chips, prompting PIN entry
Entered PIN checked against PIN on card
If they match, transaction is complete
What can customers do at an ATM?
Withdraw cash, order bank statement, order new cheque book, obtain account balance, print mini-statement + lodge a bank cheque.
What is an ATM?
Automatic Teller Machine
What can a customer do thanks to online banking?
View recent transactions, search for particular transactions, pay bills online, transfer money between accounts, set up direct debit payments + view bank statements online.
3 advantages of ATMs?
Banks need fewer employees - reduced staff wages
Customers have 24/7 access to their accounts
Customers don’t have to carry large amounts of cash
What is E-commerce?
Selling goods or services over the internet.
4 ways of paying for goods + services?
Cash - ATM, smaller items
Plastic cards - Convenient, large reg purchases
Cheques - pay bills by post
Direct Debits/Standing Orders - reg monthly/annual payments
How are ATMs connected to their bank?
How do ATMs work?
Wide Area Network (WAN)
Read magnetic strip on card, connect to bank database and show options.
How do credit cards work?
Allow users to make purchases and draw cash up to a certain amount. Receive monthly statement showing purchases. Can pay off all or part w/interest on money they owe.
How do debit cards work?
Connected to bank account. Used to withdraw money from ATMs.
How do loyalty cards work?
Promote customer loyalty by awarding points that can be used for rewards or discounts.
How do store cards work?
Allow customers to make purchases on credit. Similar to credit card but in 1 store.
How can plastic cards be used:
- Telephone/Internet
- Checkout/ATM
- Cardholder name, card number + expiry date
- Electronically. Account number, PIN, bank sort code, credit limit, amount withdrawn.
Advantages of E-Commerce? (5)
Increase in postal staff + programmers Mobility issues not a problem Wider range of products Cheaper goods/services Product reviews available
Disadvantages of E-Commerce? (4)
Traditional shops may have to close
Easier for criminals to get credit card details
Interact with computers, not people
Gap between rich + poor increases
Advantages of Online Banking? (4)
Can check balance 24./7
Transactions in comfort of own home
Efficient
Can easily transfer funds
Disadvantages of Online Banking? (3)
Fewer staff in banks + banks close
Easier for criminals to get card details
Fraud + counterfeit cards
What are the 3 most common areas involving plastic card fraud?
Cards being lost/stolen, cards being copied (counterfeit) and payments made over phone/internet where card is not present.