Some smart cards are smarter than others.
The simplest cards are smart enough to be virtually impossible to clone or falsify but offer no protection in case of loss. More sophisticated cards manage several applications and passwords, while using authentication and ciphering techniques to combine total security and freedom. The advantage of using EP for the retailer is that the efficient transfer of funds greatly reduces banking costs for small value purchases. The advantage to the consumer is the convenience and security of not carrying cash. Certain cards have the ability to cancel or credit funds back to the owner in case of a lost or stolen card.