An automated checkout system and method including a conveyor system that automatically transports objects along an item path through a read zone of a data reader (such as a portal data reader, tunnel scanner or other type of automated reader) and to an exit zone, an indicator system disposed in or along the exit zone that provides indication as to whether an item has been identified by the portal data reader. In one example, the indicator system includes lights at an indicator location that are selectively alighted a given color for the duration of the item passing the indicator location depending upon whether the reader successfully read the item (e.g., color green) or unsuccessfully read the item (e.g., color red).