There are plentiful benefits to smart card technology.
In the case of payment processing, smart card reader software helps manage these functions at the point of sale. With built-in memory cards and microprocessors, it’s perhaps unsurprising that smart cards can serve multiple functions. The card’s data can be managed with smart card reader software. Microprocessor smart cards include both a memory chip as well as a built-in microprocessor for increased function. However, the data can’t be modified, and the card isn’t programmable. Prepaid phone cards and key fobs are a common example of this type of card, which includes a memory chip that stores, reads, and writes data. Memory chip-only smart cards are meant to provide a single function. There are also hybrid cards out there which include multiple technologies, such as microprocessors as well as RFID chips. With both contact and contactless capabilities, they’re easy to use in any setting. You can simply place the card near the reader to connect the pair.ĭual-interface smart cards combine the two types of technology. Instead, the card and reader connect using antennae and wireless radio frequencies. A conductive contact plate on the card’s surface physically connects to the card reader’s touchpoint, allowing data to be sent and received.Ĭontactless smart cards are becoming increasingly common, requiring no physical contact with the card reader. These are inserted directly into the smart card reader. There are several types of smart cards you might come across, each designed for slightly different functions.Ĭontact smart cards are the type you’re most likely to come across. The card reader acts as a middleman, passing the card’s data along to a separate authentication system for processing. Depending on the type of card, it uses either direct contact or wireless connectivity via RFID or NFC standards. A smart card’s memory chip and/or microprocessor is capable of exchanging data with the card reader. What happens when you connect a plastic smart card with a smart card reader? The smart card reader provides the power needed for the card to function. Smart cards must conform to international security standards, including the ISO/IEC 14443 and ISO/IEC 7816. However, in both cases there’s no need to contact remote databases to process a transaction. Some smart cards include a microprocessor and memory chip for greater functionality, while others will only include the memory chip. All required information for transaction processing is encrypted and included on the smart card’s chip, which also serves as a security token for various applications. Although plastic smart cards are most common, you’ll also come across designs crafted from metal. The chip is often embedded directly into the card and connects to a smart card reader either through wireless connectivity or physical contact. Used to make payments or to carry easily scannable information, smart cards are designed with an integrated chip built into the system. So, what is a smart card, and how does this type of technology work? Here’s what you need to know. First launched in 1983 with a French card for pay phones, this type of card comes with its own memory chip included. Many countries have phased out magnetic stripe card technology in favour of the smart card.