EFT,
EPOS and EFTPOS
EFT (electronic funds transfer) – is the moving of
money from one bank account to another using data communications and without any
use of paper. Example – people
can be paid their wages direct into a bank account and spend them without
handling any actual money.
EPOS (electronic point of sale) – most larger shops
have EPOS terminals. They are the cash registers which also act as terminals to
a main computer system. They
produce itemised receipts. When you go to the cashier they often scan a bar code
or tag into a machine. This records
the sale, identifies the item being sold and sometimes updates a stock list.
EFTPOS (electronic funds transfer at point of sale) –
These are similar to EPOS terminals but with extra features that allow transfers
of funds from customer bank accounts directly into the shop’s bank account
when a credit or debit card is used.
Advantages of EFT
and EFTPOS
- Less
chance of theft because no cash is used.
- It
is a simple way of transferring funds.
- More
secure for transferring large sums of money.
Disadvantages of
EFT and EFTPOS
- Many
people don’t have bank accounts or prefer to use cash.
- Cards
are not practical for buying small items.
- Both
buyer and the seller have to pay charges for use of the cards.
Changes in Shopping
Shops
use IT in a number of ways:
- Automated
data capture is being used at checkouts to provide information to the shop
about customers.
- Bar
code systems allow easier stock control.
- Customers
often use cards for payment.
- Accounts
and stock control are being automated in large shopping chains.
- Shopping
from home by the Internet, TV and teletext is now more and more common.
Advantages of
computerisation of shopping
- Queues
are shorter because it takes less time to get through the cashier.
- Shop
assistant’s work is simpler and less mistakes are made.
- More
accurate stock control.
- Automatic
delivery of goods to shop.
- Easier
to pay for goods.
- Shops
can use customer information to improve their service.
Disadvantages of
computerisation of shopping
Customers
may feel that their privacy is threatened by database marketing.
- Shop
assistants may feel threatened by computer monitoring of their work rate
e.g. their speed at the checkout.
- Small
shops often can’t afford to take part in the new systems and can’t
compete.
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