Bar codes contain details about the product, and ends with a check digit, so the computer can validate that the data is correct.
EPOS stands for Electronic Point Of Sale- the tills at supermarket. The bar codes are scanned into the system by a laser scanner on the till which is connected to the store's computer system. This computer system contains the current price of the products in the database.
The computer reduces the recorded stock of the product and when stock falls below the pre-set amount, more is automatically ordered.
Reduce the need for cash
Allow customers to use debit cards instead of cash.
This is called Electronic Funds Transfer At The Point Of Sale (EFTPOS)
Till automatically reads customers bank account details.
Card stores information as a chip or magnetic stripe
Card fraud is a potential problem- PIN number reduces this problem, some stores accept a signature instead of a PIN
Find out exactly what the shopper buys
Loyalty cards contain details of the customer and their loyalty scheme account number. The card is swiped when the customer buys something and details of their purchase are stored on their computer system.
The customer is usually 'rewarded' for their loyalty if they spend above a certain amount.
Also, the store knows exactly what each customer has bought. They can use this information so send personalised mail-shots to customers.