Payment Systems and Technologies

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Questions and Answers

What is one of the primary uses of Chip and PIN readers?

  • Reading barcode information
  • Processing payments (correct)
  • Tracking inventory
  • Transmitting data over long distances

Why are Chip and PIN readers considered more secure than contactless payments?

  • They use passwords
  • PIN typed must match the stored PIN on the chip (correct)
  • They use magnetic stripes
  • They require a signature

Which of the following is a disadvantage of Chip and PIN readers?

  • Fraud risk of PIN being read by someone else (correct)
  • Inability to process transactions offline
  • High cost of maintenance
  • Limited lifespan of the chip

What are the two main components of an RFID tag?

<p>A microchip and an antenna (D)</p> Signup and view all the answers

What is the primary function of an RFID reader?

<p>Capturing information stored on an RFID tag (D)</p> Signup and view all the answers

How do passive RFID tags differ from battery-powered RFID tags?

<p>Battery-powered tags use an embedded battery to power the RFID (D)</p> Signup and view all the answers

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Study Notes

Uses of Chip and PIN Readers

  • Payments are made using cards in places such as restaurants, supermarkets, and travel agents.

Advantages of Chip and PIN Readers

  • More secure than contactless payments due to PIN verification.
  • More robust than magnetic stripe cards.

Disadvantages of Chip and PIN Readers

  • Susceptible to fraud if PIN is read by someone else while typing.

Radio Frequency Identification (RFID) Readers

  • Use radio waves to read and capture information from tags.
  • Can read tags from a distance of several meters, an advantage over barcode systems.

RFID Tag Components

  • Microchip: stores and processes information.
  • Antenna: receives and transmits data.

Types of RFID Tags

  • Passive tags: use reader's radio wave energy to relay information.
  • Battery-powered tags: use a small embedded battery to power the RFID.

RFID System Diagram

  • RFID tag: connected to antenna.
  • Antenna: connected to reader.
  • Reader: connected to computer with a double-headed arrow.

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