Direct Data Entry Devices

Magnetic Stripe Reader

An input device which reads the magnetic stripe on the
back of a credit card.
You swipe the plastic card through the magnetic stripe
reader slot. The reader is able to 'read' or interpret the
data contained within the magnetic stripe on the card e.g.
bank account number.
Bank and Credit cards contain a magnetic stripe, so do
club cards and loyalty cards.

Uses:
 ATMs use them to process the information from bank cards,
 EFPTOS (Electric Funds transfer Point of Sale) use reader to transfer
money and purchase goods in store.
 Hotel rooms use them in place of door keys.
Chip and Pin
A security method to reduce card fraud.
PIN stands for Personal Identity Number. Credit and Debit
cards now include 'chip and PIN' technology. This means
there is a microchip embedded within the card that can
check if the PIN number you enter into the card reader is
correct.
You can tell if a card is chip and pin by looking for a small
rectangle of gold contacts on its surface. These are the electrical connec-
tions the card makes with the reader. Uses: To make secure payments in res-
taurants, supermarkets, online retail etc.

RFID Tags
Is an abbreviation for Radio Frequency Identification.
This is a term used to describe a type of wireless technology used to
identify objects, animals (or people). These can be in tag form or mi-
crochip.
Uses:
 Businesses that want to keep track of their stock as it moves
from one place to another.
 Security systems that can sense the identity of the person
wanting access to a restricted area.
 Anti-theft Many shops use RFID to deter shop-lifting. Have you
noticed some shops have some tall objects standing either side of the doors? You
have to walk between them in order to leave the shop. This is part of an RFID system
 Passports. Many countries, including the UK now use RFID tags inside passports.
Advantages and Disadvantages of RFID:

Advantages of RFID Technology

 The tag does not need to be in line of sight with the receiver to be read
(compare to a barcode and its optical scanner) (Shepard, 2004, p. 58).
 RFID tags can store a lot of information, and follow instructions
 Has the ability to pinpoint location
 Technology is versatile: can be smaller than a thumb tack or can be the
size of a tablet, depending on its use

Disadvantages of RFID Technology

 Active RFID can be expensive because of batteries
 There still needs to be regulations about RFID guidelines
 There is a privacy concern towards RFID devices, for example some
claim that Wal-Mart is infringing on natural rights by overseeing what
customers buy
 RFID may be easily intercepted, even if it is Encrypted (Shepard,
2004, p. 58).
 It takes a lengthy time to program RFID devices

Magnetic Ink Character Recognition

MICR stands for Magnetic Ink Character Recognition.
It refers to the magnetic codes found on the bottom of
cheques.
MICR uses special ink characters. When a document that con-
tains this ink needs to be read it passes through a machine
which magnetises the ink and then translates the magnetic
information into characters. MICR is most commonly used in Banks, to in-
terpret the various codes such the cheque number, sort code and account
number on a cheque. Uses: Mainly used to process cheques and some coun-
tries use it to process passport numbers on passports.
Optical Mark Reader (OMR):
This is an automatic input device.
Forms that have been filled in for use with an OMR machine are marked with
high contrast ink. The machine can then read the data very reliably and rapid-
ly. Try to picture a multiple choice test where you have to show your answer
by using a pencil to fill in a small oval next to the correct letter. The marks on
the paper contrast against the white background.
The form is scanned into the computer and the OMR software is used to rec-
ognise and record where the marks appear on the paper.
Uses: Used in processing of passports and identity cards, used in the process
of digitising books.