ICT Application

Online booking system: -

Online booking system used int the following: -
(a) The Travel industry.
(b) Concerts (theatre and music events).
(c) Cinema tickets.
(d) Booking sporting events.
Online booking system has advantages and disadvantages for applying it
Advantages: -
1- Prevent double-booking.
2- Immediate feedback on the availability of seats or not.
3- Making booking at any time of the day.
4- “Special offers” can come through e-mail.
5- Saves a lot of postal card printouts.
6- Allowing use of technology such as QR code which contains all the
booking information necessary.
Disadvantages: -
1- Setting and maintenance is expensive.
2- Customers using this technology need access to computer or mobile
Phone with reliable Internet connection.
3- Often difficult to cancel the booking after being done.
4- Some special offer done by travel agent may not be available online.
(a) The travel industry: -
Let’s assume we want to book flight the form will be having the
following fields and investigations: -
- Schedule of departing and returning date and time.
- Asks the passenger if there is any emergency case would he/she able to
travel before or after one day.

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 - Is the flight going to be returning or it’s only one way.
- The route of the flight means from where to where and if there are any
transits in the middle.
- If there any other travelers (e.g., children, infants) and their numbers.
(b) Concerts (music, theatre or cinema): -
Three activities involve booking seats, when the customer logs into the
system the following procedures take place:
• The customer clicks on the performance he wants to attend.
• A date and time typed in.
• Required number of seats entered.
• Seating display at the avenue appears on the screen.
• User selects the seats by highlighting actual seats on the screen,
then clicks on confirm to go to next process.
• Database checks on the availability of the selected seats.
• The total price will be shown in case the availability is approved.
• The customer clicks on confirm on the screen.
• The seats will be held temporarily and set by the system NO
LONGER AVAILABLE.
• The customer then enters his/her personal details.
• Payment method then selected and the payment is made.
• Theatres’ seats then will be booked in the customer’s name.
• An email sent to the user containing the QR code which contains
all the customer details (acts as e-ticket); the QR code then scanned in at the
avenue.
• Database is finally updated and the seats will be booked in the
customers’ name and set permanently no longer available.

Banking system: -
Banking applications: -
(a) Automatic Teller Machine (ATM).
(b) Electronic Fund Transfer (EFT).
(c) Credit/debit card transactions.

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 (d) Cheque clearing.
(a) Automatic Teller Machine (ATM):-
ATM allows the user to:
- Withdraw cash.
- Deposit cash.
-Deposit cheque.
- Check the balance of user’s account.
- Display mini bank statement.
- Pay bill.
- Do money transfer.
Assuming the customer wants to withdraw cash here the
following what user does and what happens behind the scenes:

User’s cash withdraw Background Process

Customer puts the card into ATM Contact made with bank’s computer
PIN entered PIN checked if it’s correct, if it’s not
will ask the customer to retype the
PIN. Card checked to see if the
expiration date has exceeded or if the
card has been stolen.
If the card is stolen and PIN entering
exceeded three then the card
retained.
Number of options given:
- Change PIN
- Account balance
➢ On screen.
➢ Printed out.
- Pay in cheques.
- Get a mini statement.
- Pay a bill.
- Make a money transfer.
- Deposit cash.
- Withdraw cash
Customer selects withdraw cash

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A number of cash amounts are shown
Customer accepts one of the cash or
types in different amount
The customer asked if they want
receipt
The card is returned
Money is dispensed
Customer’s account checked if it’s
having a sufficient fund.
Check then made to see if the daily
cash limit has been exceeded, if all
above is ok then authorization made
and machine counts the cash.
Customer’s account gets updates

Depositing cheque in ATM process will be as follows: -

- User asked to insert their debit card and types in PIN.
- A message then appears with the service ATM offers.
- User chooses to deposit cheque.
- A drawer then open and customer insert the cheque.
- The drawer then close and OCR(Optical Character Reader/Recognition)
will check the cheque details including amount of money.
- The amount appears on the screen and the user confirms it.
- User’s account will then updated with amount of cheque (pending cheque
clearance from 24 to 48 hours).
- A printed receipt with the amount of cheque given to the user.
- If no other service required the card returned to the customer.
Advantages of ATM: -
- Can withdraw cash at any time of the day.
- No need to go to the bank.
- Possibility of account access from around the world.
- Quicker than queuing in the bank.
Disadvantages of ATM: -

- They are under threat by thieves.

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 - Possibility of card cloning.
- ATM services may be charged by the bank.
- If debit card is faulty no transactions will take place.
(b) Electronic Fund Transfer (EFT): -
It’s an electronic transfer money between banks
Uses of EFT: -
- Salaries payments to the staff of the company.
- Purchase payment in store via credit/debit card using system called
Electronic Fund Transfer at Point of Sale (EFTPOS).
Advantages of EFT: -
- Very secure payment method.
- Very quick payment method.
- Less expensive than using cheque.
- Customer has right to dispute EFT up to 60 days.
Disadvantages of EFT: -
- Once money transaction happened no way to reserve it.
- Customer has to have funds immediately unlike cheques.
- No guarantee of recipient.

(c) Credit/debit card transactions: -

Either credit or debit card both have chip built in them, it contains PIN key.
Taking scenario of paying for meal in restaurant using chip and PIN card to
see how the transaction works:
(a) PIN is entered using keypad.
(b) Card is check to see if it’s valid (expiry date, is it stolen or no).
(c) PIN is read from the chip and compared to the one entered by
customer.

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(d) If match occurs the transaction proceeds.
(e) If no match the transaction terminates.

(f) A check is made if the funds are sufficient.

(g) If there are insufficient funds the transaction terminates.

(h) If every check is ok the transaction is authorized.

(i) An authorization code is sent to the restaurant.
(j) The price of the meal is then deducted from the customer’s account.
(k) The same amount of money debited to the restaurant’s account.
(l) A receipt as produced as proof of purchase.
Advantages and disadvantages of credit cards and debit cards:
Type of card Advantage Disadvantage
Customer protection if a Can be charged with high
company stops trading interest rate
or goods do not arrive
Internationally accept Easy to end up with
Credit method of payment credit damage
Interest free loan if Security risks when use
money paid back with credit card online.
agreed time
Can buy items online
No interest charge as Less customer protection
money comes from than credit if goods do
customer’s current not arrive
Debit account
Safer than carrying cash No credits allowed
Can buy items online Security risks when using
the debit card online

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 (d) Cheques: -
Cheque is one of oldest banking system used instead of cash dealing.
Let’s discuss the advantages and disadvantages of it

Advantages
More convenient and
safer than carrying cash
Possible to stop payment
if necessary
Can be drawn at any
time up to six months
Can be post paid
Can be traced if lost
Disadvantages
Not a legal tender and
can be refused
Slow method of payment
Easier for fraudsters than
credit or debit card
system
Relatively expensive
method of payment

Central clearing of cheques: -

It’s method of dealing with banks through cheques using OCR (Optical
Character Recognition/Reader) software.
It’s based on creating digital record of the money by taking image of
cheque showing the money amount.
Assuming bank A wants to pay cheque with amount of money to bank B.
here the sequence of the process of the clearing:
• Out clearing takes place which is presenting bank B with the cheque,
camera takes image of the cheque and OCR converts it into digital format.
• Bank B uses this electronic data to create digital record of the money
to be paid, sort code of the cheque and account number on the cheque.
• There will be created file with the bank A added to the other files
containing images and details of every bank.
• Bank B sends all the files to the central facility.
• Central facility will process the files in the following ways:
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 o Breaks down all files into individual payment message.
o Does payment validation.
o Creates and sends ‘request to pay’ message to bank A.
• Bank A will receive ‘request to pay’ and carries out the transaction, A
‘no pay’ decision will be made based on:
o Insufficient funds.
o The account is blocked.
o Cheque is not signed.
o Suspected fraud.
• Central facility will receive ‘Pay’ or ‘No pay’ and will route it to bank
B.
• All this happens in less than 24 hours.

Advantages and disadvantages of using cheques:-

Advantages
1- More convenient and safer than
carrying cash
2- Possible to stop payment if
necessary
3- Cheque can be drawn at any time
(up to 6 months after dated and
signed)
4- Cheques can be post dated
5- Cheques can be traced if they lost
Disadvantages
1- Cheques are not legal tenders
and can be refused
2- Slow method of payment
3- Easier for fraudsters than credit
and debit card payment methods
4- Relatively expensive payment
method