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DEBIT CARD

A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account in to cash when making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. In many countries the use of debit cards has become so widespread that their volume of use has overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases. However, unlike credit cards, the funds paid using a debit card are transferred immediately from the bearer's bank account, instead of having the bearer pay back the money at a later date. Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cash back facilities to customers, where a customer can withdraw cash along with their purchase. favor of the payee's designated bank account. The card can be used as an alternative payment method

Types of debit card systems
There are currently three ways that debit card transactions are processed: online debit (also known as PIN include the functions of an online debit card, an offline debit card and an electronic purse card. Although many debit cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted only within a particular country or region, for example Switch (now: Maestro) and Solo in the United in Germany, UnionPay in China and EFTPOS cards in Australia and New Zealand. The need for cross-border Kingdom, Interac in Canada, Carte Bleue in France, Laser in Ireland, "EC electronic cash" (formerly Eurocheque) compatibility and the advent of the euro recently led to many of these card networks (such as Switzerland's "EC direct", Austria's "Bankomatkasse" and Switch in the United Kingdom) being re-branded with the internationally recognised Maestro logo, which is part of the MasterCard brand. Some debit cards are dual branded with the logo and Solo in the UK, Pinpas cards in the Netherlands, Ban contact cards in Belgium, etc.). The use of a debit card system allows operators to package their product more effectively while monitoring customer spending. An example of one of these systems is ECS by Embed International. of the (former) national card as well as Maestro (for example, EC cards in Germany, Laser cards in Ireland, Switch debit), offline debit (also known as signature debit) and the Electronic Purse Card System. One physical card can

Online Debit System
Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. One difficulty in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate PIN the online debit card is generally viewed as superior to the offline debit card because of its more secure pad to enter the PIN, although this is becoming commonplace for all card transactions in many countries. Overall, authentication system and live status, which alleviates problems with processing lag on transactions that may only issue online debit cards. Some on-line debit systems are using the normal authentication processes of Internet banking to provide real-time on-line debit transactions. The most notable of these are Ideal and POLl.

Offline Debit System
Offline debit cards have the logos of major credit cards (for example, Visa or MasterCard) or major debit cards (for example, Maestro in the United Kingdom and other countries, but not the United States) and are used at the point of sale like a credit card (with payer's signature). This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds. Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances. In some countries and with some banks and merchant service organizations, a "credit" or offline debit transaction is without cost to the purchaser beyond the face value of the transaction, while a small fee may be charged for a "debit" or online may opt to withdraw cash in addition to the amount of the debit purchase (if the merchant supports that compared to "credit" (offline) debit transaction. debit transaction (although it is often absorbed by theretailer). Other differences are that online debit purchasers functionality); also, from the merchant's standpoint, the merchant pays lower fees on online debit transaction as

Electronic Purse Card System
Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an externally recorded account, so that machines accepting the card need no network connectivity) are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria (Quick Wertkarte), the Netherlands In Austria and Germany, all current bank cards now include electronic purses. (Chipknip), Belgium (Proton), Switzerland (CASH) and France (Mon€o, which is usually carried by a debit card).

Examples of two of these providers are Goyow.Prepaid debit cards Prepaid debit cards. a company based in California that came up with the only dual Visa prepaid debit card product . The unique feature of the product is the fact that it comes with 2 separate accounts and not a shared balance. the ability for anyone over the age of 18 to apply and be accepted without regard to credit quality and the ability to direct deposit paychecks and government benefits onto the card for free. Some of the first companies to enter this market were MiCash. However. appeal to a variety of users. a company based in New York who has grown substantially in the past 2 years as a result of their unique features and low fees. The primary market for prepaid cards are unbanked people. not having to worry about paying a credit card bill or going into debt. in the past few years there have been several new providers that carry a number of other benefits. The advantages of prepaid debit cards include being safer than carry cash. card-to-card transfers and the ability to apply without a social security number. The company has been around for a couple of years now and their low fees and excellent customer service has made them as attractive as other products on the market. The other with the 2 cards inside the pack. also called reloadable debit cards. an umbrella term used to describe diverse groups of individuals who do not use banks or credit unions for their financial transactions. worldwide functionality due to Visa and MasterCard merchant acceptance. one is TransCash. such as money remittance service. RushCard and Netspend who gained high market share as a result of being first to market.

Advantages of debit cards  A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card. and rejected transactions by some banks.  Like credit cards. a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge. checks. Unlike personal checks. without agreement as to date. but not online debit card  For most transactions. which includes the use of a credit card.  Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented. legislation often transactions.  Many banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations. with a debit transaction PIN input. debit cards are accepted by merchants with less identification and scrutiny than personal do not believe that a payment via a debit card may be later dishonored. and bypassing the requirement to pay a credit card bill at a later date. amount and currency. as with a credit transaction PIN input. For example.Advantages and disadvantages The widespread use of debit and check cards have revealed numerous advantages and disadvantages to the consumer and retailer alike. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction. amounts not available causing further rejections or overdrafts. allowing him/her to make plastic transactions. most banks allow a certain threshold over the available bank balance which can cause overdraft fees if the users transaction does not reflect available balance. which charges higher fees and interest rates when a cash advance is obtained. Disadvantages of debit cards  Use of a debit card is not usually limited to the existing funds in the account to which it is linked. merchants generally  Unlike a credit card. over-the-limit. However. other than a foreign ATM fee. a check card can be used to avoid check writing altogether. or to write an insecure check containing the account holder's personal information. and even attempted but refused transactions by the merchant (some of which may be unknown until later discovery by account holder). thereby finalizing the transaction at the time of purchase. thus causing penalty fees for overdrafts. and theft using a signature-based . theft of users' PIN codes using skimming devices can be equally easily accomplished credit transaction is equally easy as theft using a signature-based debit transaction.  In some countries debit cards offer lower levels of security protection than credit cards. prevents minors from taking out debt. payee name. thereby making transactions quicker and less intrusive. Check cards debit funds from the user's account on the spot.

The bank may fight to void the charges of a consumer who is dissatisfied with a purchase. However.  In the UK and Ireland. Until or may be paid at the expense of an overdraft fee if the account lacks any additional funds to pay those items. While they must generally exhaust the process provided by the retailer first. car rental agencies require an actual credit card to be used. and such a credit check may actually hurt one's credit score.  When a transaction is made using a credit card. the bank has a vested interest in claiming its money where there is fraud or a dispute. the consumer has spent his/her own money. such as Canada & Australia. the consumer may be held liable for hundreds of dollars. This protection is not provided by legislation when using a debit card but may be offered to a limited extent as a benefit provided by the card network.  While debit cards bearing the logo of a major credit card are accepted for virtually all transactions where an equivalent credit card is taken. In Canada and additional unspecified countries. this is not necessary if the retailer has gone out of business. or car rental. such as Sweden. as long as there is such a thing as a credit score in the country of purchase and/or the country of residence of the customer. car rental companies will deny a rental to anyone who does not fit the requirements. among other countries. will verify the creditworthiness of the renter using a debit card. a major exception in some countries is at car rental facilities.  In some countries. But when a debit purchase is made. and the bank has little if any motivation to collect the funds. While the holder of a credit card is legally responsible for only a minimal amount of a fraudulent transaction made with a credit card. or at the . such as gasoline (via a pay at the pump system). The consumer also has a shorter time (usually just two days) to report such fraud to the bank in order to be eligible for such a waiver with a debit card. laws protect the consumer from fraud much less than with a credit card. this time may be up to 60 days. a consumer who purchases goods or services with a credit card can pursue the credit card issuer if the goods or services are not delivered or are unmerchantable. whereas with a credit card. In some very least. and the consumer will have no recourse. lodging. which is often waived by the bank. or even the entire value of fraudulent debit transactions. any other transactions presented to the account. A thief who obtains or clones a debit card along with its PIN may be able to clean out the consumer's bank account. and therefore. In many places. Visa debit cards. including checks. may be dishonored. or who has otherwise been treated unfairly by the merchant. and for certain types of purchases. for example. this isn't the case in other countries. the bank may place a hold on funds much greater than the actual purchase for a fixed period of time. the bank's money is being spent. countries. the hold is released.

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The issuer of the card creates money for payment to amerchant or as a cash advance to the user. which can be used like currency by the owner of the card. while others are set up in ways that work best for small business needs. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. To know what type of credit card fits your needs. subject to interest being charged. depending on what your needs are. The credit card may offer special business rewards and saving opportunities that go above and beyond what the individual credit card owner may have. Some are geared toward individual consumers. Since money management is essential in successfully running a business. A credit card also differs from a cash card. Types of credit card systems Different types of credit cards offer several different options. Business Credit Cards A business credit card offers the business owner the opportunity to keep business and personal expenses separate. the card may offer an expense management service that will allow you to keep track of the outgoing money.125 in) (33/8 × 21/8 in) in size.[2] In contrast. credit cards allow the consumers a continuing balance of debt. and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow A credit card is different from a charge card: a charge card requires the balance to be paid in full each month.370 × 2.60 × 53. Student Credit Cards .98 mm (3. let's review a few of your options. Most credit cards are issued by banksor credit unions. This is defined as 85.CREDIT CARD A credit card is a small plastic card issued to users as a system of payment. You can obtain additional credit cards for employees who may need them for travel expenses and such as well as have a higher credit limit than you normally would on an individual credit card.

you can earn cash back for your purchases. Instead of cash. like Sears. Credit Cards with Reward Do you pay your balance in full each month or make large purchases on credit? If so. will offer you cash off purchases made in their store. . take note. Credit Cards for Bad Credit It is possible. averages between $3. of your restrictions may be lifted. Still. gasoline.Many credit card companies will issue student credit cards that have lower credit limits and fewer incentives to help keep their spending in check. this can be a real problem when trying to pay them Prepaid credit Cards Prepaid debit cards are one type of credit card that has grown significantly in recent years. meaning you have to maintain a savings or some other type of some. hotel stays. Cash Back Credit Cards Many credit cards will now offer you cash back incentives for using their credit cards. even with bad credit to obtain a credit card. Many college students graduate with a credit balance that off. Although they work like a traditional credit card when making a purchase. rewards credit cards are a great choice. Either way. if you are planning on using a credit card.000 and with interest rates. but you collect points for each purchase you make. statement credits and more depending on which type of rewards card you choose. These cards will come with some restrictions not typically found on other types of credit cards. these points can be redeemed for free flights.000 and $7. Once you have established that you will be responsible. that is where the similarities end. They're similar to a cash back credit card. car rentals. Your credit limit will be lower and your interest rate higher. Depending on how much you have deposited into the debit cards account depends on how much credit limit you want on that card. account that will cover the expenses on the credit card. With prepaid debit cards. Some companies offer 1% off your balance while others. you have actually prepaid and set the credit limit by depositing money onto the debit card. if not all. finding one that will offer you a cash incentive is a smart choice. Some may require you to have a secured credit card. Depending on how much your balance is and how often you use the credit card. gift cards. This is a great way to have the convenience of a credit card without the chance of charging more than you can afford to pay off.

Balance Transfer Credit Cards Credit card issuers aren't just trying to get first time card holders. One of the most effective ways of doing this is to offer balance. normally between one year and 18 months. . so charity credit cards are a good way for us to do that. It's a very simple system . the provider will automatically donate a small percentage of the total to a charity of your choice.when you make a purchase with the charity card. saving you a huge pile of cash! Charity Credit Cards Most of us would like to give to charity when we can afford to. They are also looking to lure customers from other card providers. where customers can benefit from an introductory offer of zero interest on their transfered balance for a set period of time.

credit card are real and can be helpful as long as you remember your spending limits.Credit cards can also be useful in times of emergency.Having a good credit history is often important. Advantages of credit cards  Purchase Power and Ease of Purchase .and the longer you wait. rental applications. you may be able to spend up to $500 or $1.)  Credit Card Benefits .Credit cards can make it easier to buy things. you will have to pay it off -. Both your credit card statement (and the credit card stolen. While you should avoid spending outside your budget (or money you don't have!). some credit card companies offer insurance on large purchases. companies start making their money when you can't afford to pay off your charges!) the benefits example most airlines. such as discounts from particular stores or companies. not only when applying for credit cards. and car rental agencies).The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have.) While most of these benefits are meant to encourage you to charge more money on your credit card (remember. damaged. so even if you only have $100.  company) can vouch for the fact that you have made a purchase if the original receipt is lost or Building a Credit Line . month on the money you have borrowed. putting purchases on a credit card can make Disadvantages of credit cards  Blowing Your Budget -. Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit history. but also when applying for things such as loans. sometimes emergencies (such as your car breaking down or flood or fire) may lead to a large purchase (like the need for a rental car or a motel room for several nights.  the more money you will owe since credit card companies charge you interest each High Interest Rates and Increased Debt -.Credit cards may also offer you additional protection if something you have bought is lost.Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of . While this may seem like 'free money' at the time.  Emergencies . or even some jobs. In addition.  Protection of Purchases . and special insurances (like travel or life insurance.In addition to the benefits listed above. there are advantages and disadvantages to credit cards. hotels. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for buying things easier. bonuses such as free airline miles or travel discounts. or stolen. Knowing some of these can help you decide if you do or do not want to use credit cards.000 on your credit card. some credit cards offer additional benefits. Most credit cards do not require you to pay off your balance each month.Advantages and disadvantages Like most things.

each month. A good way to look at this is in comparison to what you would earn in interest from a bank or owe in interest to a bank loan: Savings accounts may pay you around 2% interest. o Don't loan your credit card to anyone and only give out your credit card information to trusted companies or Web sites. if you owe money to a credit card company. over the phone. o You can find out more about protecting your personal information by visiting our Personal Safety course. like $25 or $50. Pay off your balance on all of your credit cards at the end of each month. you will not be charged for any purchases that someone else has made. you may pay them around 20% interest (10 times as much as you earn off your savings. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt.50 a year on your $100      Credit cards can make life easier and be a great tool. Don't spend outside your budget. Even if you don't realize your credit card number has been stolen (sometimes you might not know until you receive your monthly statement). If you do decide to use credit cards. This means that if you have $100 balance that you don't pay off. most credit card companies don't charge you or only charge a small fee. This means that you owe almost $30 interest (plus the original $100) at the end of the year. if you have a loan from a bank you may pay them around 10% interest (5 times as much as you earn off your savings). This is how they make their money and this is how most people in the United States get into debt (and even bankruptcy.)  Credit Card Fraud .0 to 2. or from a Web site) and use your card to rack up debts.5% interest on your money savings. if you realize your credit card or number has been stolen and you report it to your credit card company immediately. unlike cash.$2. o Check your statement closely at the end of each month to make sure all charges are yours. even if to prevent credit card fraud: the thief has charged thousands of dollars to your card. most banks will give you at the most 2. The good news is that. Most credit cards charge you up to 10 times that amount of interest on balances.Like cash.) Consider this: If you have a $100 in savings. over the course of the year. This means you earn $2. remember these simple rules: Keep track of all your purchases. you will be charged 20-25% interest on that $100. . There are several things you can do o If you lose your card or wallet. report it to your credit card company immediately. Don't loan your credit or give out your credit card information to anyone but reliable companies. but if they aren't used wisely they can become a huge financial burden. sometimes credit cards can be stolen.00 .

Assignment of Computer Application Submitted By: Divya BBA(B&I)3RD SEM 2NDs 10436 .

There are two leading smart card operating systems: JavaCard and MULTOS. a research firm.7 billion smart cards will be shipped annually by 2003. and other applications. How Smart Cards Work A smart card contains more information than a magnetic stripe card and it can be programmed for different applications. used for telephone calling. trains. . Another study forecasts a $26. IBM. Europe is the region where they are most used. Smart cards can be designed to be inserted into a slot and read by a special reader or to be read at a distance. such as at a toll booth. Schlumberger. Ovum. representing Microsoft.SMART CARD A smart card is a plastic card about the size of a credit card. electronic cash payments. and Schlumberger. or buses Give hospitals or doctors personal data without filling out a form Make small purchases at electronic Buy gasoline at a gasoline station stores on the Web (a kind of cybercash) Over a billion smart cards are already in use. Compaq and Hewlett-Packard are reportedly working on keyboards that include smart card slots that can be read like bank credit cards. Bull. The hardware for making the cards and the devices that can read them is currently made principally by Bull. Currently or soon. you may be able to use a smart card to:        Dial a connection on a mobile telephone and be charged on a per-call basis Establish your identity when logging on to an Internet access provider or to an online bank Pay for parking at parking meters or to get on subways. Some cards can contain programming and data to support multiple applications and some can be updated to add new applications after they are issued. Gemplus. Another standard is called OpenCard. and other interested companies. with an embedded microchip that can be loaded with data. An industry standard interface between programming and PC hardware in a smart card has been defined by the PC/SC Working Group. Currently. predicts that 2. Cards can be disposable (as at a tradeshow) or reloadable (for most applications).5 billion market for recharging smart cards by 2005. and then periodically refreshed for additional use.

The total components. all this in a unified package that appears to the user as a simple device. This is followed by embedding a chip and then adding data to the . may be as many as 12 separate items. Polyester or Polycarbonate. How the card data is read and written 2). The typical card today is made from PVC. The next step in card. The type of chip implanted within the card and its capabilities. There is a wide range of options to choose from when designing your system.Types of smartcard systems Smart cards are defined according to 1). including software and plastics. that when brought together properly gives the card a specific life and functionality. there may be up to 30 steps in constructing a card. The card layers are printed first and then laminated in a large press. Card Construction Mostly all chip cards are built from layers of differing materials. or substrates. construction is the blanking or die cutting. In all.

The following chart demonstrates some general rules of thumb: Card Function Trade-Offs . Electrical contacts located on the outside of the card connect to a card reader when the card is inserted. readers. Single function cards are usually the most cost-effective solution. Choose the right type of smart card for your application by determining your required level of security and evaluating cost versus functionality in relation to the cost of the other hardware elements found in a typical workflow. This connector is bonded to the encapsulated chip in the card. issuance. training and advertising making up the other 85 percent. All of these variables should be weighted against the expected lifecycle of the card. On average the cards typically comprise only 10 to 15 percent of the total system cost with the infrastructure.Contact Cards These are the most common type of smart card. flexibility and memory will add cost. Increased levels of processing power. software.

Most cards of this type incorporate permanent security measures at the point of manufacture. This process can be reversed in the case of rechargeable cards. There are three primary types of memory cards: Straight. the chip has 60 or . and Stored Value.Memory Cards Memory cards cannot manage files and have no processing power for data management. no memory left for any other function. There is little or 12 memory cells. They should be regarded as floppy disks of varying sizes without changed with the larger quantities of processors being built for the GSM market. For simple applications such as a telephone card. The memory arrays on these devices are set-up as decrements or counters. Protected / Segmented Memory Cards These cards have built-in logic to control the access to the memory of the card. Straight Memory Cards These cards just store data and have no data processing capabilities. A memory cell is cleared each time a telephone unit is used. so your host system has to know what type of card is being inserted into a reader. They typically can be tracked by an on-card identifier. These cards cannot identify themselves to the reader. Stored Value Memory Cards These cards are designed for the specific purpose of storing value or tokens. All memory cards communicate to readers through synchronous protocols. Most contactless cards are variants on the protected memory/segmented memory card idiom. This is usually done through a password or system key. These measures can include password keys and logic that are hard-coded into the chip by the manufacturer. these devices can be set to write. The cards are either disposable or rechargeable. Protected. This has now into the advantage of these types of devices. one for each telephone unit. Sometimes referred to as Intelligent Memory cards.protect some or the entire memory array. These cards are easily duplicated and cannot be tracked by on-card identifiers. Some of these cards can be configured to restrict access to both reading and writing. these cards were traditionally the lowest cost per bit for user memory. Segmented memory cards can be divided into logical sections for planned multifunctionality. Once all the memory units are used. This has dramatically cut the lock mechanism. the card becomes useless and is thrown away. Before designing in these cards into a proposed system the issuer should check to see if the readers and/or terminals support the communication protocols of the chip. In all memory cards you read and write to a fixed address on the card. Often made with I2C or serial flash semiconductors. These cards are not easily duplicated but can possibly be impersonated by hackers.

Smart Card .Debit Card. Credit Card.

These cards are often protected memory types. the card is passed along the exterior of the reader and read. . the higher the cost.e. Instead.the more functions. They are also processing revenues (i. unlike traditional smart cards. convenience and security. versus microprocessor cards and the limited distance between card and reader required for operation. the technology enables secure identification of users and permits information updates without replacement of the installed base of cards. simplifying program changes and reducing costs. which specify chips from either specific or various manufacturers. Contactless card drawbacks include the limits of cryptographic functions and user memory. This capability permits different and multiple microprocessor or microcontroller chip that manages this memory allocation and file access. True read and write contactless cards were first used in transportation applications for quick decrementing and reloading of fare values where their lower security was not an issue. via a card operating system (COS). multifunction means greater many purposes. Specifically. Visa and MasterCard). gaining popularity in retail stored value since they can speed up transactions without lowering transaction Variations of the ISO14443 specification include A. manages data in organized file structures. and C. For the card user. Within the card is a chip is similar to those found inside all personal computers and when implanted in a smart card. allowing businesses to issue and maintain a diversity of ‘products’ through the card.CPU/MPU Microprocessor Multifunction Cards These cards have on-card dynamic data processing capabilities. Another type of limited card is the Gen 2 UHF Card that operates at 860 MHz to 960 MHz. This type of There are many configurations of chips in this category. Multifunction cards benefit issuers by enabling them to market their products and services via state-of-the-art transaction and encryption technology. One example of this is a debit card that also enables building access on a college campus. and ultimately. As a rule of thumb . Unlike other operating systems. Multifunction smart cards allocate card memory into independent sections or files assigned to a specific function or application. They communicate at 13. B. consolidation of multiple cards down to a select few that serve software controls access to the on-card user memory. including chips that support cryptographic Public hardware blocks.56 MHz and conform to the ISO 14443 standard. A=NXP-(Philips) B=Everybody else and C=Sony only chips. this functions and/or different applications to reside on the card. These cards function with a very limited memory and communicate at 125 MHz. Types include proximity cards which are implemented as a read-only technology for building access. Key Infrastructure (PKI) functions with on-board math co-processors or JavaCard®with virtual machine Contactless Cards These are smart cards that employ a radio frequency (RFID) between card and reader without physical insertion of the card.

including ISO7816. Hybrid Cards Hybrid cards have multiple chips in the same card. Multi-component Cards These types of cards are for a specific market solution. Or one company has built a card that generates a one-time password and displays the data for use with an online banking application. Vault cards have rewriteable magnetic stripes. Specialty shaped cutouts of cards with modules and/or antennas are being used around the world. Smart Card Form Factors The expected shape for cards is often referred to as CR80. These are typically attached to each interface separately. But this shape is not the only form factor that cards are deployed in. USB flash drive . How the card is made determines if it is a Hybrid or dual interface card. there are cards where the fingerprint sensor is built on the card. are SIM. Each of these technologies is specific to a particular vendor and is typically patented. The most common shapes tokens are also available that leverage the same technology of a card in a different form factor. inductive method or with a flexible bump mechanism. For example. Banking and ID cards are governed by the ISO 7810 specification. SD and MicroSD cards can now be deployed with the strength of smart card chips. The term can also include cards that have a magnetic-stripe and or bar-code as well.Multi-mode Communication Cards These cards have multiple methods of communications. The chip may be attached to the embedded antenna through a hard connection. Dual Interface Card These cards have one chip controlling the communication interfaces. ISO14443 and UHF gen 2. such as a MIFARE chip and antenna with a contact 7816 chip in the same card.

Advantages and disadvantages Advantages of smart cards              It provides reduction in costs It has technical specification standards It gives security of information It has emergency information It has more organized information The process doesn't require paper One card can access multiple transactions It can do transactions off and on-line It reduces fraud It is more convenient. since people don't have to carry cash or multiple cards It has high memory capabilities It has the ability for on-site approval End-user only accessibility Disadvantages of smart cards       Fees applied with the use of a card It gives liability issues if stolen or lost The accuracy of information is small Lack of technology to support users It is potential for too much data on one card if lost or stolen It is a potential area for computer hackers and computer viruses .

Brazil. A single card can include stored has adequate funds or if the card has been stolen. . Solaic. use correct change and worry about getting cut off in the middle of a call anymore. Smart cards technology can help to optimize portable solution for information access. Those are countries like German. estimates that there is over 420 million phone cards were sold worldwide in 1996 (Verifone. France. Other application of smart card is in the area of banking and finance industry. Over 1500 photo ID cards with a smart card chip were issued to everyone at US President Clinton's second inauguration. smart cards are used toward generalized healthcare coverage and to support more government's laws to protect individual data privacy. People don't have to in the world that have reduced or eliminated coins from pay phone system by issuing smart cards. management and improved communication among a variety of professionals involved in the healthcare administrations. The memory chip in the card can tell the business whether the customer Smart cards are also used as security access control cards. UK. Mexico and many more. (Verifone. a smart card manufacturer. 1997) In health care. After the insertion of a card into the reader. Schlumberger. France can monitor their pregnancies through medical records on smart cards. There are over 100 countries value. The mobile nature of today's healthcare administration necessitates immediate information access and total flexibility. Pregnant women in Blois. 1997)). China. an Europe smart card maker.APPLICATIONS Phone card is the most universal type of smart cards applications. estimates that more than 250 million patients in Europe and Asia will own healthcare smart cards (Verifone. individuals were automatically granted or denied access. By 2005. debit and loyalty programs. 1997). credit.

Over the next 5 years. It is a safe place to store valuable information such as account numbers. or personal information.4 billion unit by 2001. services worldwide. transactions history. development. which accounted for only 84 million units in 1995. mainly outside United States. there are smart cards that may be used for more than one function. the market for smart card units will reach 2. It is also secure enough to execute processes that are not to be exposed to the rest of the world. North America and Latin America are believed to be of the greatest potential in the next The reason for the growth is of smart cards' fundamental portability and security. As reflected by palm pilot another way supporting this direction.7 billion by year 2003. will expand to 1. smart cards are While most smart cards today only carry one function. money.SECURITY ISSUES Smart cards offer more security and confidentiality than other financial information. It is not only small. such as performing private key encryption. . According to recent study by Dataquest. Asia. microprocessor-based smart cards. the overall market for memory and microprocessor-based cards will grow from 544 million units in 1995 to 3. the industry will experience stable growth. This kind of card for example can store tickets information. people are looking for smaller and smaller way to carry data with them. FUTURE OF SMART CARDS Based on research by Ovum Ltd.2 billion units in 2001 Smart cards activities are growing 30% a year. Thus. but the security can also be guaranteed. especially in cards and devices to perform electronic commerce and to facilitate secure access to computer networks. Smart cards are projected to be used in 95% of the digital wireless phone three years. passwords.. frequent flyer miles and travel preferences. Of that figure.