Decoding
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Un-decoded
The scanner outputs raw data which represents the optical patterns in the barcode. Decoding these patterns into usable data must be done by an external decoder or by special decoder software running on the connected computer. External decoder boxes are readily available, and many industrial and point-of-sale terminals have decoders built in.

Decoded
A decoder is built into the scanner; the scanner outputs a data stream that represents the actual data contained in the barcode. The scanner is responsible for figuring out the type of barcode and doing all the decoding.

Decoders, whether built into a scanner or a separate interface box, often include the ability to manipulate the barcode data to some extent. Common examples are the automatic addition of a carriage return at the end of each barcode scan or the insertion or other special prefix or suffix characters.