Transcript EFTPOS - Mid Yell Junior High School

EFTPOS
Lesson 5:
What is EFTPOS?
Commercial Data Processing
By the end of this lesson you will be able to:
1.
Suggest what the initials EFT stand for.
2.
Suggest what the initials EPOS stand for.
3.
Suggest what the initials EFTPOS stand for.
4.
Explain how EFT works.
5.
Explain how EPOS works.
6.
Explain how EFTPOS works.
7.
List 2 advantages of EFTPOS for the seller of goods.
8.
List 2 advantages of EFTPOS for the buyer of goods.
9.
Explain why you should never buy goods that say MULTIPACK
DO NOT SELL INDIVIDUALLY.
Commercial Data Processing
Electronic Funds Transfer
 EFT is used to pay for goods without using cash.
 Funds transferred automatically from one bank
account into the another.
How EFT works
1.
The shop assistant inserts the card into the reader.
2. The terminal contacts the bank to get an authorisation code
3. The details of the transaction is added to the batch file for
processing at the end of the day.
4. When the batch file is processed the money is transferred
from the person’s account to the shops bank account.
Commercial Data Processing
Electronic Point of Sale (EPOS)
EPOS terminal collects the sale data automatically from the checkout as
the customer buys the goods.
EPOS terminals are computers that have:
an input device e.g. a barcode scanner.
a backing store or a connection to a mainframe.
How EPOS works
1.
The assistant passes the goods through a bar code reader.
2.
The bar code is validated.
3.
Using the bar code the computer finds the product name and price.
4.
Item is added to the till display and printed on the itemised receipt.
5.
Computer updated stock records are adjusted.
6.
Computer calculates the total for the customer.
Commercial Data Processing
EFTPOS
 EFT stands for Electronic Funds Transfer.
 EFT is the transfer of money from one account to another.
 EPOS stands for Electronic Point Of Sale
 EPOS is the automatic gathering of data about sales.
 EFTPOS stands for Electronic Funds Transfer at Point of Sale,
ie EFT and POS working together.
 EFTPOS is used in most shops to sell/purchase goods.
Commercial Data Processing
Advantages of EFTPOS
 Payment guaranteed to shop is guaranteed.
 Less paperwork for the shop to processes, ie no cheques or cash to
pay-in their banks.
 Improved security because less cash is held in the stores.
 Customers are happier it doesn’t take so long to process their shopping.
 Fewer mistakes by employees – items are scanned rather than the
prices typed in.
 Special offers are programmed into computer rather training the
unreliable till assistant.
Commercial Data Processing
Disadvantages of EFTPOS
1. The systems are expensive to install.
2. System failures (part or whole) cause major problems.
3. GIGO. If the wrong product price has been programmed into the
computer everyone buying it will be charged the wrong price.
4. Multi-pack items barcodes cause problems. Don’t buy products
that say “MULTI-PACK DO NOT SELL INDIVIDUALLY”.
5. Card fraud has become a major problem for customers.
Chip and pin cards were brought in to cut fraud by including a smart chip and also
by having users verify transactions by keying in a pin number rather than signing a
receipt.