The chip also contains advanced security features that protect the card s data. Memory cards simply store data and can be viewed as small floppy disks with optional security. Memory cards depend on the security of a card reader for their processing. A microprocessor card can add, delete, and manipulate information in its memory on the card. It is like a miniature computer with an input and output port, operating system, and hard disk with built-in security features.
Smart cards have two different types of interfaces.
Contact smart cards must be inserted into a smart-card reader. The reader makes contact with the card module s electrical connectors that transfer data to and from the chip. Contactless smart cards are passed near a reader with an antenna to carry out a transaction. They have an electronic microchip and an antenna embedded inside the card, which allow it to communicate without a physical contact. Contactless cards are an ideal solution when transactions must be processed quickly, as in mass transit or toll collection.