Smart card is a plastic card with an embedded microchip. It can store large amounts of data, from bank details to medical records in its memory. The data is encrypted  – put into code – for security.

So why a smart card? How does it protect me?

A smart card is more useful and secure than a magnetic strip card. The card can hold up to 80 times more data and is much harder to copy a chip than magnetic strip. Data is protected because it is encrypted inside the chip. Although it is not possible to steal data from the chip, the high cost and computing power required deters criminals. The memory chip requires authentication before stored data is unlocked.

The “Chip & Pin” process makes a card payments more secure. The chip in the cards holds an encrypted copy of the users four-digit personal identification number (PIN). By entering the number into a reading device, a user can prove they own the card. This has reduced instances of card fraud; without the PIN, it is almost impossible for a crimincal to steal and use another persons card.

Smart card uses

  • In money – people use smart cards to access their individual bank accounts and withdraw money or check their account information.
  • Telephone calls – prepaid telephone cards are credited with a number units to make calls
  • Cell Phones – Smart cards in cell phones contain subscriber information to identify the user to the network.
  • Computer Security – to gain access to a personal computer, a smart card can authenticate the user.
  • Travel – Many subway systems use prepaid smart cards instead of tickets, passengers swipe their cards to gain access.
  • Health – smart cards provide an easy and safe way of storing and checking confidential medical information.

Interesting Facts:

  • The gold pad found on top of a Smart card allows a two-way flow of data between the card and the reader.
  • The first smart cards were introduced in Europe during the 1990s. They were mainly used as pay-phone cards.
  • Smarts cards will be replaced by radio tags embedded in objects that can be scanned remotely like key rings or even the uses body.

Want to know more about Radio Tags and Smart Card Like Chips? Will a Radio Tag be eventually implanted in you? Click here.