Computers in shops and internet shopping Cambridge IGCSE Information & Communication Technology revision

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In plain words

Scan, beep, pay. In the few seconds a product spends at a supermarket till, the computer has found its price, changed the stock records, and asked a bank for the money.

6 things to know

  1. A point of sale (POS) terminal is the till. The bar code is scanned, and the code is looked up in the stock file to find the price and description, which are shown and printed on the receipt.
  2. The stock file is updated automatically: the number in stock is reduced by one. When it falls to the re-order level, the system orders more automatically.
  3. An electronic funds transfer at point of sale (EFTPOS) terminal takes payment by card. The card is checked to be valid: not expired and not reported stolen. The customer proves it is theirs with a chip and PIN, or pays contactless.
  4. Contactless cards and phones using near field communication (NFC) are held near the reader, with no PIN needed for small amounts.
  5. The shop's computer contacts the customer's bank, which checks that there is enough money. If so, the payment is authorised and the money is moved to the shop's account.
  6. Internet shopping: customers can shop at any time from home, compare prices and choose from a wider range. But the goods cannot be seen or tried, delivery takes time and may cost money, returning goods is harder, and there is a risk of fraud.

Worked example

A tin of soup is scanned at a POS terminal. Describe how the stock is controlled automatically.

  1. The bar code is read and the product is found in the stock file.
  2. The number in stock for that product is reduced by one.
  3. The new number is compared with the re-order level. If it is at or below that level, an order is sent to the supplier automatically.

Tips and tricks

  • POS is about stock and prices. EFTPOS is about payment. Keep them apart.
  • For chip and PIN, mention each check: the card is valid, the PIN is correct, and the account has enough money.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Computers in shops and internet shopping: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. What does a POS terminal use to identify a product?
    • its weight
    • its bar code (the answer)
    • the customer's PIN
    • its colour

    The code is looked up in the stock file.

  2. What happens when stock falls to the re-order level?
    • The product is removed from sale.
    • More stock is ordered automatically. (the answer)
    • The price is increased.
    • The till stops working.

    The system places the order without anyone checking shelves.

  3. What does EFTPOS allow?
    • scanning of bar codes
    • payment by card at the till (the answer)
    • printing of bar codes
    • weighing of goods

    Money is moved electronically from the customer's bank to the shop's.

  4. What does NFC allow?
    • typing a PIN
    • paying by holding a phone or card near the reader (the answer)
    • reading a bar code
    • printing a receipt

    It works over a very short distance.

  5. Which is a disadvantage of internet shopping for the customer?
    • Shops are open all hours.
    • Prices are easy to compare.
    • Goods cannot be tried before they are bought. (the answer)
    • There is a wide choice.

    The customer sees only pictures and descriptions.

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