In the U.S., smart cards can be only used at a contained group of machines, or for one purpose. N.C. One of the advantage of using chips on cards with or instead of magnetic stripes is better security. Microprocessor chips are very difficult to alter or forge. Chips can carry more information than magnetic stripes can. A microprocessor chip can store up eight kilobytes of data.
Smart cards make possible cheaper and faster payments.
Money can be deducted from a chip without on-line authorization. Inc. Online information. Communications Week, 36-40. ABA Banking Journal, 46. Wells Fargo Bank.