Direct data entry and

associated devices

Chapter 2
 Learning Objective
• Describe direct data entry and associated devices, e.g.
magnetic stripe readers, chip and PIN readers, Radio
Frequency Identification (RFID) readers, Magnetic Ink
Character Reader (MICR), Optical Mark Reader
(OMR), Optical Character Reader (OCR), bar code
reader
• Identify the advantages and disadvantages of any of the
above devices in comparison with others
Magnetic Strip Readers are used to read data found on magnetic
stripes found on the back of cards.

USE:
Bank Cards: Contains Account details
Arcade: Contains balance
Security/Hotel Rooms: Allows entry to specific room.
Gift Cards (Vouchers) – amount of vouchers

Advantages: Disadvantages
• Fast data entry • Stripe could become
compared to unreadable -
keyboard scratched
• Secure/Error Free – • Does not work at
No Typing a distance
• Not effected by water • Easily Lost/misplaced
and robust if dropped
• Easily Updated
Chip and Pin Readers are used POS terminals to make a secure
payment using a debit or credit card.

USE:
Users can make payment at shops, restaurants by
simply inserting their credit/debit card into the chip
and pin reader and typing in their pin.

Advantages: Disadvantages
• Secure method of • The pin could be read
payment compared by some one watching
to swipe and or use of mirrors.
contactless • Fraudulent machines
method. can copy card details.
• Chip is less likely to
be damaged
compared to a
magnetic swipe.
Contactless Cards Readers are used by customers to pay for
products at the POS without the need to enter a PIN Number using
RFID technology Transactions are normally restricted to a small
amount (up to £20)
How it works
The payment terminal picks up a signal from the
chip to process and complete the transaction
when the card is within a few centimetres
distance.
Advantages: Disadvantages
• Quicker Transaction • Less secure than chip
meaning less time and pin method.
spent at POS. • Anyone could use
• Don’t have to use PIN card if lost.
• Transaction data • It is easer for thieves
(account details) to copy details of the
is encrypted. card.
• Only small payments
can be made
Compare the use of Contactless and Chip and Pin cards
at the POS terminal?
Key Words: Secure, PIN, Replicate details, limited payments,
speed of transaction, Overseen

The Chip and Pin is a more secure method of payment as the user would
be required to enter a 4 digit pin to proceed with the transaction. The
advantage of using the contactless method of payment is that it reduces
the time taken by retailers to deal with each customer which increases
the speed of the transaction. This will help reduce the queuing time at
the POS. However only small/limited payments can be made on the
contactless method which would restrict your purchase limit. Also it is
easier for thieves to copy/replicate details of the contactless card by
using a scanner at a short distance. On the hand the PIN could be
overseen by other people once it has been entered into chip and pin
reader. In conclusion the contactless method maybe a suitable method
of payments if the customer is only purchasing items within the limit of
the card.
Radio Frequency Identification
RFID reads information stored on tags (small silicon chip that
can be placed on a sticker) using radio waves. RFID tags can be
attached to objects or animals/people.

USE:
• Track movement of animals (livestock) or people
• Stock Control: Scan stock items for quantity
• Airports: Track Luggage to make sure nothing is lost
• Contactless cards to make a payment
Advantages: Disadvantages
• Can read objects from a • Radio symbols can be
distance. jammed or hacked.
• Can read in bulk • More expensive than
• Very fast reading – quick a barcode
response • Tags could interfere
• Allows read/write operations to with each other.
take place
• Can read biometric readings
 Radio Frequency Identification

An automatic washing machine contains a device to read

RFID chips sewn into clothing. When an item of clothing is
placed in the washing machine it is scanned. Describe how
the data is read from the RFID chip.

The washing machine sends out (interrogation waves) radio signal to

read the data from the RFID. They act as a passive transponder.

Explain the benefits of using RFID technology in a washing

machine.
The benefit of using RFID technology is that it stops material being
incorrectly washed. Also it stops coloured items of clothing being in the
wrong wash. In addition it stops clothing of different material being
washed with others. Furthermore it allows the wash cycle to be set
automatically. RFID technology will know the amount of water to use so
less water will be wasted.
 Magnetic Ink Character Reader
MICR is able to read characters printed in a special ink. These
characters are then converted into a form which could be
understood by the computer
USE:
Used to process bank cheques. The characters at
the bottom of cheque which are printed in a special
ink are read by the Magnetic Ink Character
Reader.
Advantages: Disadvantages
• No need to manually • More expensive than
enter text – less using a keyboard to
chance of human type manual data.
error. • Limited amount of
• Characters can not characters can be
be altered. read.
• Characters can be
read even if they have
been written over.
Optical Mark Reader
OMR is able to read marks written in pen or pencil. The position of
the mark is stored in the computers memory.

USE:
Used to scan in marks from multiple choice exams,
surveys,
and lottery tickets.
Advantages: Disadvantages
• Very fast method of • Forms have to be
inputting data as no completed correctly to
user has to manually avoid manual checks
enter results. which would waste time.
• More accurate than
OCR
• Less chance of errors
Optical Character Reader
OCR scans text from hardcopies and converts it into an editable
form which can be used and edited in a range of software
including word processors.
USE:
Used in Self-Immigration System at Airports.
Identity Cards
Students scanning text from books which
can be edited.
Advantages: Disadvantages
• Faster method of • Not as accurate as
data entry the OMR reader
compared to • Unable to
manually typing the read
data. handwriting.
• Less chance of errors.
Barcode Scanners are used to scan bar codes which contains
unique information about a product including price.

USE:
Barcode readers are typically used at
point-of-sale (POS) in shops when customers
are purchased goods.
Advantages: Disadvantages
• Far quicker and • Barcode could
more accurate than be unreadable
typing in codes or missing.
using a keypad. • Barcode could be
• Stock database can swapped.
easily be updated • Can be an
with new prices – expensive
barcodes would not system.
need to be
replaced.
 Quick Response Codes
• QR Codes made up of a matrix filled with dark
squares in a light background.
• It can hold over 7000 digits. It can contain
o Website link
o Telephone number
o Advertisement
o Menu card
• Reading QR codes can be possible using the built
in camera or by downloading applications.

• Advantages:
o No need to write down or key in a website address automatically done by
scanning.
o Providing a very effective method for advertising.