SALMIYA INDIAN MODEL SCHOOL, KUWAIT

Subject: ICT Date: 6.6.2022

Class: IX IG

Direct Data Entry (DDE) Devices:

Devices for reading information from cards:
Magnetic stripe readers: These are used to read information on the magnetic
stripe eg. found behind ATM cards.
Uses:
1. On credit/debit cards for use at ATM and EFTPOS(electronic funds
transfer at point of sale) terminals.
2. Security devices to allow entry to important buildings.
Adv:
1. Fast data entry compared to enter using keyboard.
2. Error free as no typing involved.
3. Secure as info is not human readable form
4. Prevents access to restricted/ secure areas.
5. Not affected by oil, water etc
6. No moving parts, hence physically strong.
Dis Adv:
1. If the magnetic stripe gets damaged the data is lost.
2. Doesn’t work at a distance
3. Since information is not in human readable form at times it can be a
disadvantage.

Contactless card readers: Contactless cards allow customers to pay for items
worth for a certain limit without entering the pin.
Working: These cards have a small chip that emits radio waves and when the card
is held within a few cm of the payment terminal, the terminal picks up the signal
from the chip and allows the transaction to be processed.
Steps:
1. The customers look out for the contactless symbol on the payment terminal.
2. The shop assistant enters the amount for the payment
3. The card reader informs the customer to present their contactless card.
4. The customer holds the card in front of the card reader.
5. The terminal display will indicate that the card has been read.
Adv:
1. Faster transaction than the magnetic stripe
2. The system uses 128-bit encryption to protect data.
3. Customers do not have to worry about entering wrong PIN.
4. Retailers no longer have access to customer’s card details
5. The chip in the card responds with the payment terminal reader with a
unique number used for that transaction only.
Dis adv:
1. They are expensive that the normal debit/credit cards.
2. The thief can keep the payment terminal just near your card and do the
transaction as no PIN is required without the person knowledge.
3. Can take money twice If customer uses it as a chip and PIN card.
4. Transactions are limited to a very small amount.

Chip and PIN readers: These are similar to smart card readers but are used at
EFTPOS terminals. The device has a slot where card is placed and the chip is read
and the PIN is entered using keypad. The reader has a small screen which gives
instructions to the operator. Here, the customer has to key in their PIN for
transaction and cards do not make use of RF technology.
Uses:
1. Where payments are made using cards.
Adv:
1. More secured system.
2. More robust system than magnetic stripe cards.
Dis Adv:
1. Fraud, need to be careful while entering the PIN from others.