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What's behind the code bars?

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xyzzyplugh | 01:58 Wed 13th Nov 2002 | How it Works
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How does the EPOS gizmo read the barcode? because the stripes have no correlation to the numbers, there aren't 10 different thicknesses, only 3 and only 3 different spacings. Does the laser 'slide' down the bars and read the numbers by character recognition? Or What?
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I would expect the numbers are represented in binary form. a line being a one and a space a zero. The lines would really be only one thickness but give the appearance of thicker lines where there are two ones together. A 4 bit binary number could be used to represent all the numbers from 0 to 16, but as only numbers up to 9 are use this is OK. Has anyone else more info on this as I'm just guessing.
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except that the 'spooky' part of my question has been edited out...
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loyalty cards? TW, There are powers at work in this country about which we have no knowledge'.
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