Similar in size to today's plastic payment card, the smart card has a microprocessor or memory chip embedded in it. The chip stores electronic data and programs that are protected by advanced security features. When coupled with a reader, the smart card has the processing power to serve many different applications. As an access-control device, smart cards make personal and business data available only to the appropriate users. Another application provides users with the ability to make a purchase or exchange value.
Smart cards provide data portability, security and convenience.
Memory cards simply store data and can be viewed as a small floppy disk with optional security. A microprocessor card, on the other hand, can add, delete and manipulate information in its memory on the card. Contact smart cards Contact smart cards must be inserted into a smart card reader. When the card is inserted into a smart card reader, it makes contact with electrical connectors that transfer data to and from the chip. Contactless smart cards Contactless smart cards are passed near an antenna to carry out a transaction.