Barcode Types Explained — Which Codes Your POS Scanner Needs to Read

A barcode scanner does not care what brand it is — it cares what format the barcode is printed in. A retail product carries a UPC or EAN. A shipping carton carries a Code 128. A customer's phone displays a QR code for payment. A patient's medication pack carries a Data Matrix. Each of these is a different barcode format with different data structures, different physical dimensions, and different scanner hardware requirements. A scanner that reads one format may not read another. This guide explains the seven barcode formats a POS or retail environment is most likely to encounter, what data each one carries, and which scanner technology is needed to read it.

Two Categories: 1D Linear Barcodes and 2D Matrix Codes

Every barcode in commercial use falls into one of two categories based on how it encodes data.

1D (linear) barcodes encode data in a single row of vertical bars and spaces of varying widths. The data is read horizontally across the barcode — the height of the bars is just for visibility and scanning convenience, not for data storage. 1D barcodes store limited data: typically 8–20 characters, enough for a product identifier (UPC/EAN) or a short serial number. A 1D laser scanner reads these by sweeping a laser beam across the bars and measuring the reflected light pattern.

2D (matrix) barcodes encode data in a grid of dark and light modules arranged in both rows and columns. Data is stored across the entire two-dimensional area, which means a 2D code can hold hundreds or thousands of characters in a space smaller than a 1D barcode carrying 12 digits. 2D barcodes require an imaging scanner — a device that captures a photograph of the code and processes the entire image, rather than scanning a single line. A 1D laser scanner cannot read 2D codes because it only reads along one horizontal axis.

1D Barcode Formats Used in POS and Retail

UPC-A (Universal Product Code) is the 12-digit barcode printed on virtually every retail product sold in North America. It encodes a manufacturer identifier and a product number, which the POS software uses to look up the product name, price, and inventory status from its database. UPC-A is administered by GS1, the global standards organization for supply chain barcodes. Any 1D or 2D barcode scanner can read a UPC-A code.

EAN-13 (European Article Number) is the international equivalent of UPC-A, using 13 digits instead of 12. EAN-13 is the standard retail barcode in Europe, Asia, South America, and most markets outside North America. A product intended for global distribution carries an EAN-13 code. From a scanner hardware perspective, UPC-A and EAN-13 are interchangeable — any scanner that reads one reads both, and most POS software handles both formats natively.

Code 128 is a high-density 1D barcode used in shipping, logistics, and supply chain management. Unlike UPC/EAN, Code 128 can encode the full ASCII character set (letters, numbers, and symbols), making it suitable for serial numbers, batch codes, and carton tracking labels. GS1-128 (a standardized subset of Code 128) is the standard for shipping labels that carry weight, destination, and lot data. Warehouse and logistics scanners must support Code 128; most retail POS scanners also read it by default.

Code 39 is an older 1D format still used in industrial manufacturing, automotive parts tracking, and some healthcare applications. It encodes uppercase letters, numbers, and a few special characters. Code 39 barcodes are physically wider than Code 128 for the same amount of data, which makes them easier to print on low-resolution label printers but less space-efficient. New deployments generally prefer Code 128 over Code 39 unless legacy compatibility requires it.

2D Barcode Formats Used in POS, Payments, and Logistics

QR Code (Quick Response) is the most widely recognized 2D barcode format. Originally developed for automotive parts tracking, QR codes are now used across retail, hospitality, and payments. A QR code can store up to 4,296 alphanumeric characters — enough for a URL, a payment token, a loyalty card identifier, or a digital menu link. In POS environments, QR codes appear in three contexts: mobile wallet payments (the customer's phone displays a QR code that the scanner reads), marketing URLs (printed on receipts or packaging), and digital vouchers or coupons.

QR codes have built-in error correction — even if up to 30% of the code is damaged or obscured, the scanner can still decode it. This makes QR codes resilient in environments where labels get scratched, stained, or partially covered. Reading a QR code requires a 2D imaging scanner; a 1D laser scanner cannot read it.

Data Matrix is a compact 2D format used in manufacturing, electronics, and healthcare. A Data Matrix code can encode the same data as a QR code but in a physically smaller footprint — some Data Matrix codes are as small as 2mm × 2mm, small enough to be laser-etched directly onto a circuit board or a surgical instrument. In healthcare, the U.S. FDA requires Data Matrix codes on unit-dose medication packaging for traceability. Pharmacies and clinical settings need scanners that support Data Matrix decoding in addition to standard retail formats.

PDF417 is a stacked 2D barcode format used for documents that need to carry a large amount of data in a scannable format. PDF417 codes appear on airline boarding passes, government-issued ID cards (such as U.S. driver's licenses), and shipping manifests. Unlike QR and Data Matrix (which are true 2D matrices), PDF417 is technically a "stacked linear" format — it stacks multiple rows of 1D-like bars on top of each other. Most 2D imaging scanners read PDF417, but some budget models may require a firmware update to enable it.

Which Scanner Technology Reads Which Format

The relationship between barcode format and scanner hardware is straightforward once the two categories are clear:

The practical takeaway: a 2D imaging scanner reads every format in this table. A 1D laser scanner reads only the top four. For any deployment that handles — or may in the future handle — QR codes, mobile payments, or Data Matrix labels, a 2D scanner is the only hardware that works. For a detailed comparison of wired vs wireless and handheld vs presentation scanner form factors, see the POS barcode scanner buying guide.

Why Retail and Hospitality Are Moving to 2D

Five years ago, a retail counter could operate with a 1D laser scanner and never encounter a barcode it could not read. That is no longer the case. Three trends are driving the shift to 2D imaging scanners across retail and hospitality:

Mobile wallet payments — Apple Pay, Google Pay, Alipay, and WeChat Pay all present QR codes or NFC signals. In markets where QR-based payment dominates (China, Southeast Asia, parts of Latin America), a scanner that cannot read QR codes cannot process a significant percentage of transactions. Even in NFC-dominant markets like North America and Europe, QR-based loyalty programs and digital coupons are increasingly common.

Digital receipts and returns — Retailers issuing digital receipts send customers a QR code (via email or SMS) that the customer presents at the counter for returns or exchanges. The POS scanner reads the QR code to pull up the original transaction. A 1D scanner cannot process this workflow.

Regulatory traceability — Industries like healthcare and food service are adopting 2D codes (Data Matrix, QR) for product traceability. The EU's Falsified Medicines Directive and the U.S. FDA's Drug Supply Chain Security Act both require 2D codes on pharmaceutical packaging. Food service operations tracking ingredient lots for recall compliance are moving in the same direction. These regulations flow downstream to the POS scanner at the point of dispensing or sale.

How to Future-Proof Scanner Hardware Selection

A barcode scanner purchased today will be in use for 3–5 years. The barcode formats it encounters during that period will almost certainly expand beyond what the business handles today. Three principles reduce the risk of a scanner becoming obsolete before the end of its service life:

Default to 2D imaging — A 2D scanner reads every 1D and 2D format. The price premium over a 1D laser scanner is $30–$60 per unit at volume. Over a 3–5 year deployment, this premium is insignificant compared to the cost of replacing an entire fleet of 1D scanners when QR-based payments arrive in the market.

Verify screen-reading capability — Not all 2D scanners read codes displayed on smartphone screens equally well. Phone screens vary in brightness, reflectivity, and pixel density. A scanner rated for "screen reading" or "mobile device scanning" has been specifically tuned to handle the optical challenges of reading from a glossy LCD or OLED display. This spec is critical for any deployment accepting mobile wallet payments or digital vouchers.

Check firmware update support — New barcode formats and symbology variants emerge as industries adopt new standards. A scanner with updatable firmware can add support for new formats without hardware replacement. Dongguan Tcang Electronics Co., Ltd. (TCANG POS) supplies 2D imaging scanners in the TC-SCAN series with firmware update capability, ensuring the hardware stays compatible as barcode standards evolve across global markets.

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