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 users 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 23 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 (Mono, which is usually carried by a debit card).

Prepaid debit cards

Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users. The primary market for prepaid cards are unbanked people, an umbrella term used to describe diverse groups of individuals who do not use banks or credit unions for their financial transactions. The advantages of prepaid debit cards include being safer than carry cash, worldwide functionality due to Visa and MasterCard merchant acceptance, not having to worry about paying a credit card bill or going into debt, 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, RushCard and Netspend who gained high market share as a result of being first to market. However, in the past few years there have been several new providers that carry a number of other benefits, such as money remittance service, card-to-card transfers and the ability to apply without a social security number. Examples of two of these providers are Goyow, 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 other with the 2 cards inside the pack. The unique feature of the product is the fact that it comes with 2 separate accounts and not a shared balance. 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. one is TransCash, a company based in California that came up with the only dual Visa prepaid debit card product

Advantages and disadvantages

The widespread use of debit and check cards have revealed numerous advantages and disadvantages to the consumer and retailer alike.

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, allowing him/her to make plastic transactions. For example, legislation often transactions. prevents minors from taking out debt, which includes the use of a credit card, but not online debit card

For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds

from the user's account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to pay a credit card bill at a later date, or to write an insecure check containing the account holder's personal information.

Like credit cards, 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.

checks, thereby making transactions quicker and less intrusive. Unlike personal checks, merchants generally

Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee.

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, 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.

Many banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations, and even attempted but refused transactions by the merchant (some of which may be unknown until later discovery by account holder).

Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks.

In some countries debit cards offer lower levels of security protection than credit cards. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction. However, 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. with a debit transaction PIN input, as with a credit transaction PIN input, and theft using a signature-based

In many places, laws protect the consumer from fraud much less than with a credit card. While the holder of a credit card is legally responsible for only a minimal amount of a fraudulent transaction made with a credit card, which is often waived by the bank, the consumer may be held liable for hundreds of dollars, or even the entire value of fraudulent debit transactions. 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, whereas with a credit card, this time may be up to 60 days. 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 the consumer will have no recourse.

In the UK and Ireland, among other countries, 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. While they must generally exhaust the process provided by the retailer first, this is not necessary if the retailer has gone out of business. 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, for example, Visa debit cards.

When a transaction is made using a credit card, the bank's money is being spent, and therefore, the bank has a vested interest in claiming its money where there is fraud or a dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a purchase, or who has otherwise been treated unfairly by the merchant. But when a debit purchase is made, the consumer has spent his/her own money, and the bank has little if any motivation to collect the funds.

In some countries, and for certain types of purchases, such as gasoline (via a pay at the pump system), lodging, or car rental, the bank may place a hold on funds much greater than the actual purchase for a fixed period of time. However, this isn't the case in other countries, such as Sweden. Until or may be paid at the expense of an overdraft fee if the account lacks any additional funds to pay those items. the hold is released, any other transactions presented to the account, including checks, may be dishonored,

While debit cards bearing the logo of a major credit card are accepted for virtually all transactions where an equivalent credit card is taken, a major exception in some countries is at car rental facilities. In some very least, will verify the creditworthiness of the renter using a debit card. In Canada and additional unspecified countries, car rental companies will deny a rental to anyone who does not fit the requirements, and such a credit check may actually hurt one's credit score, 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. countries, such as Canada & Australia, car rental agencies require an actual credit card to be used, or at the

CREDIT CARD
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates money for payment to amerchant or as a cash advance to the user. 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.[2] In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. Most credit cards are issued by banksor credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 53.98 mm (3.370 2.125 in) (33/8 21/8 in) in size.

Types of credit card systems

Different types of credit cards offer several different options, depending on what your needs are. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, let's review a few of your options.

Business Credit Cards

A business credit card offers the business owner the opportunity to keep business and personal expenses separate. The credit card may offer special business rewards and saving opportunities that go above and beyond what the individual credit card owner may have. Since money management is essential in successfully running a business, the card may offer an expense management service that will allow you to keep track of the outgoing money. 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.

Student Credit Cards

Many credit card companies will issue student credit cards that have lower credit limits and fewer incentives to help keep their spending in check. Still, take note. Many college students graduate with a credit balance that off. averages between $3,000 and $7,000 and with interest rates; 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. Although they work like a traditional credit card when making a purchase, that is where the similarities end. With prepaid debit cards, you have actually prepaid and set the credit limit by depositing money onto the debit card. Depending on how much you have deposited into the debit cards account depends on how much credit limit you want on that card. 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.

Credit Cards for Bad Credit

It is possible, even with bad credit to obtain a credit card. These cards will come with some restrictions not typically found on other types of credit cards. Your credit limit will be lower and your interest rate higher. Some may require you to have a secured credit card, meaning you have to maintain a savings or some other type of some, if not all, of your restrictions may be lifted. account that will cover the expenses on the credit card. Once you have established that you will be responsible,

Cash Back Credit Cards

Many credit cards will now offer you cash back incentives for using their credit cards. Depending on how much your balance is and how often you use the credit card, you can earn cash back for your purchases. Some companies offer 1% off your balance while others, like Sears, will offer you cash off purchases made in their store. Either way, if you are planning on using a credit card, finding one that will offer you a cash incentive is a smart choice.

Credit Cards with Reward

Do you pay your balance in full each month or make large purchases on credit? If so, rewards credit cards are a great choice. They're similar to a cash back credit card, but you collect points for each purchase you make. Instead of cash, these points can be redeemed for free flights, car rentals, hotel stays, gasoline, gift cards, statement credits and more depending on which type of rewards card you choose.

Balance Transfer Credit Cards

Credit card issuers aren't just trying to get first time card holders. They are also looking to lure customers from other card providers. One of the most effective ways of doing this is to offer balance, where customers can benefit from an introductory offer of zero interest on their transfered balance for a set period of time, normally between one year and 18 months, saving you a huge pile of cash!

Charity Credit Cards

Most of us would like to give to charity when we can afford to, so charity credit cards are a good way for us to do that. It's a very simple system - when you make a purchase with the charity card, the provider will automatically donate a small percentage of the total to a charity of your choice.

Advantages and disadvantages

Like most things, there are advantages and disadvantages to credit cards. Knowing some of these can help you decide if you do or do not want to use credit cards.

Advantages of credit cards

Purchase Power and Ease of Purchase - Credit cards can make it easier to buy things. 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. Protection of Purchases - Credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen. Both your credit card statement (and the credit card stolen. In addition, some credit card companies offer insurance on large purchases. company) can vouch for the fact that you have made a purchase if the original receipt is lost or Building a Credit Line - Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs. 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. Emergencies - Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget (or money you don't have!), 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.) Credit Card Benefits - In addition to the benefits listed above, some credit cards offer additional benefits, such as discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances (like travel or life insurance.) While most of these benefits are meant to encourage you to charge more money on your credit card (remember, credit card are real and can be helpful as long as you remember your spending limits. companies start making their money when you can't afford to pay off your charges!) the benefits example most airlines, hotels, and car rental agencies), putting purchases on a credit card can make

Disadvantages of credit cards

Blowing Your Budget -- The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have. Most credit cards do not require you to pay off your balance each month, so even if you only have $100, you may be able to spend up to $500 or $1,000 on your credit card. While this may seem like 'free money' at the time, you will have to pay it off -- and the longer you wait, month on the money you have borrowed. the more money you will owe since credit card companies charge you interest each High Interest Rates and Increased Debt -- Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of

each month. This is how they make their money and this is how most people in the

United States get into debt (and even bankruptcy.) Consider this: If you have a $100 in savings, most banks will give you at the most 2.0 to 2.5% interest on your money savings. Most credit cards charge you up to 10 times that amount of interest on balances. This means that if you have $100 balance that you don't pay off, you will be charged 20-25% interest on that $100. This means that you owe almost $30 interest (plus the original $100) at the end of the year. 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; 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); if you owe money to a credit card company, you may pay them around 20% interest (10 times as much as you earn off your savings.) Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt, over the phone, or from a Web site) and use your card to rack up debts. The good news is that, unlike cash, if you realize your credit card or number has been stolen and you report it to your credit card company immediately, you will not be charged for any purchases that someone else has made. Even if you don't realize your credit card number has been stolen (sometimes you might not know until you receive your monthly statement), most credit card companies don't charge you or only charge a small fee, like $25 or $50, even if to prevent credit card fraud: the thief has charged thousands of dollars to your card. There are several things you can do o If you lose your card or wallet, report it to your credit card company immediately. o Don't loan your credit card to anyone and only give out your credit card information to trusted companies or Web sites. o Check your statement closely at the end of each month to make sure all charges are yours. o You can find out more about protecting your personal information by visiting our Personal Safety course. over the course of the year. This means you earn $2.00 - $2.50 a year on your $100

Credit cards can make life easier and be a great tool, but if they aren't used wisely they can become a huge financial burden. If you do decide to use credit cards, remember these simple rules: Keep track of all your purchases. Don't spend outside your budget. Pay off your balance on all of your credit cards at the end of each month. Don't loan your credit or give out your credit card information to anyone but reliable companies.

Assignment of Computer Application

Submitted By:
Divya BBA(B&I)3RD SEM 2NDs 10436

SMART CARD
A smart card is a plastic card about the size of a credit card, with an embedded microchip that can be loaded with data, used for telephone calling, electronic cash payments, and other applications, and then periodically refreshed for additional use. 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, trains, 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. Currently, Europe is the region where they are most used. Ovum, a research firm, predicts that 2.7 billion smart cards will be shipped annually by 2003. Another study forecasts a $26.5 billion market for recharging smart cards by 2005. Compaq and Hewlett-Packard are reportedly working on keyboards that include smart card slots that can be read like bank credit cards. The hardware for making the cards and the devices that can read them is currently made principally by Bull, Gemplus, and Schlumberger.

How Smart Cards Work

A smart card contains more information than a magnetic stripe card and it can be programmed for different applications. Some cards can contain programming and data to support multiple applications and some can be updated to add new applications after they are issued. 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. Cards can be disposable (as at a tradeshow) or reloadable (for most applications). An industry standard interface between programming and PC hardware in a smart card has been defined by the PC/SC Working Group, representing Microsoft, IBM, Bull, Schlumberger, and other interested companies. Another standard is called OpenCard. There are two leading smart card operating systems: JavaCard and MULTOS.

Types of smartcard systems

Smart cards are defined according to 1). How the card data is read and written 2). 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.

Card Construction
Mostly all chip cards are built from layers of differing materials, or substrates, that when brought together properly gives the card a specific life and functionality. The typical card today is made from PVC, Polyester or Polycarbonate. The card layers are printed first and then laminated in a large press. The next step in card. In all, there may be up to 30 steps in constructing a card. The total components, including software and plastics, may be as many as 12 separate items; all this in a unified package that appears to the user as a simple device. construction is the blanking or die cutting. This is followed by embedding a chip and then adding data to the

Contact Cards
These are the most common type of smart card. Electrical contacts located on the outside of the card connect to a card reader when the card is inserted. This connector is bonded to the encapsulated chip in the card.

Increased levels of processing power, flexibility and memory will add cost. 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. 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, issuance, software, readers, training and advertising making up the other 85 percent. The following chart demonstrates some general rules of thumb: Card Function Trade-Offs

Memory Cards
Memory cards cannot manage files and have no processing power for data management. All memory cards communicate to readers through synchronous protocols. In all memory cards you read and write to a fixed address on the card. There are three primary types of memory cards: Straight, Protected, and Stored Value. 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. Most contactless cards are variants on the protected memory/segmented memory card idiom.

Straight Memory Cards

These cards just store data and have no data processing capabilities. Often made with I2C or serial flash semiconductors, these cards were traditionally the lowest cost per bit for user memory. This has now into the advantage of these types of devices. They should be regarded as floppy disks of varying sizes without changed with the larger quantities of processors being built for the GSM market. This has dramatically cut the lock mechanism. These cards cannot identify themselves to the reader, so your host system has to know what type of card is being inserted into a reader. These cards are easily duplicated and cannot be tracked by on-card identifiers.

Protected / Segmented Memory Cards

These cards have built-in logic to control the access to the memory of the card. Sometimes referred to as Intelligent Memory cards, these devices can be set to write- protect some or the entire memory array. Some of these cards can be configured to restrict access to both reading and writing. This is usually done through a password or system key. Segmented memory cards can be divided into logical sections for planned multifunctionality. These cards are not easily duplicated but can possibly be impersonated by hackers. They typically can be tracked by an on-card identifier.

Stored Value Memory Cards

These cards are designed for the specific purpose of storing value or tokens. The cards are either disposable or rechargeable. Most cards of this type incorporate permanent security measures at the point of manufacture. These measures can include password keys and logic that are hard-coded into the chip by the manufacturer. The memory arrays on these devices are set-up as decrements or counters. There is little or 12 memory cells, one for each telephone unit. A memory cell is cleared each time a telephone unit is used. Once all the memory units are used, the card becomes useless and is thrown away. This process can be reversed in the case of rechargeable cards. no memory left for any other function. For simple applications such as a telephone card, the chip has 60 or

Debit Card, Credit Card, Smart Card

CPU/MPU Microprocessor Multifunction Cards

These cards have on-card dynamic data processing capabilities. Multifunction smart cards allocate card memory into independent sections or files assigned to a specific function or application. Within the card is a chip is similar to those found inside all personal computers and when implanted in a smart card, manages data in organized file structures, via a card operating system (COS). Unlike other operating systems, this functions and/or different applications to reside on the card, allowing businesses to issue and maintain a diversity of products through the card. One example of this is a debit card that also enables building access on a college campus. Multifunction cards benefit issuers by enabling them to market their products and services via state-of-the-art transaction and encryption technology. Specifically, 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. For the card user, multifunction means greater many purposes. convenience and security, and ultimately, consolidation of multiple cards down to a select few that serve software controls access to the on-card user memory. This capability permits different and multiple microprocessor or microcontroller chip that manages this memory allocation and file access. This type of

There are many configurations of chips in this category, including chips that support cryptographic Public hardware blocks. As a rule of thumb - the more functions, the higher the cost.

Key Infrastructure (PKI) functions with on-board math co-processors or JavaCardwith virtual machine

Contactless Cards
These are smart cards that employ a radio frequency (RFID) between card and reader without physical insertion of the card. Instead, the card is passed along the exterior of the reader and read. Types include proximity cards which are implemented as a read-only technology for building access. These cards function with a very limited memory and communicate at 125 MHz. Another type of limited card is the Gen 2 UHF Card that operates at 860 MHz to 960 MHz.

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. They communicate at 13.56 MHz and conform to the ISO 14443 standard. These cards are often protected memory types. They are also processing revenues (i.e. Visa and MasterCard), unlike traditional smart cards. gaining popularity in retail stored value since they can speed up transactions without lowering transaction

Variations of the ISO14443 specification include A, B, and C, which specify chips from either specific or various manufacturers. A=NXP-(Philips) B=Everybody else and C=Sony only chips. Contactless card drawbacks include the limits of cryptographic functions and user memory, versus microprocessor cards and the limited distance between card and reader required for operation.

Multi-mode Communication Cards

These cards have multiple methods of communications, including ISO7816, ISO14443 and UHF gen 2. How the card is made determines if it is a Hybrid or dual interface card. The term can also include cards that have a magnetic-stripe and or bar-code as well.

Hybrid Cards
Hybrid cards have multiple chips in the same card. These are typically attached to each interface separately, such as a MIFARE chip and antenna with a contact 7816 chip in the same card.

Dual Interface Card

These cards have one chip controlling the communication interfaces. The chip may be attached to the embedded antenna through a hard connection, inductive method or with a flexible bump mechanism.

Multi-component Cards
These types of cards are for a specific market solution. For example, there are cards where the fingerprint sensor is built on the card. 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. Each of these technologies is specific to a particular vendor and is typically patented.

Smart Card Form Factors

The expected shape for cards is often referred to as CR80. Banking and ID cards are governed by the ISO 7810 specification. But this shape is not the only form factor that cards are deployed in. Specialty shaped cutouts of cards with modules and/or antennas are being used around the world. The most common shapes tokens are also available that leverage the same technology of a card in a different form factor.

are SIM. SD and MicroSD cards can now be deployed with the strength of smart card chips. USB flash drive

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

APPLICATIONS

Phone card is the most universal type of smart cards applications. Solaic, an Europe smart card maker, estimates
that there is over 420 million phone cards were sold worldwide in 1996 (Verifone, 1997)). People don't have to in the world that have reduced or eliminated coins from pay phone system by issuing smart cards. Those are countries like German, France, China, UK, Brazil, Mexico and many more. Other application of smart card is in the area of banking and finance industry. A single card can include stored has adequate funds or if the card has been stolen. use correct change and worry about getting cut off in the middle of a call anymore. There are over 100 countries

value, credit, debit and loyalty programs. The memory chip in the card can tell the business whether the customer

Smart cards are also used as security access control cards. Over 1500 photo ID cards with a smart card chip were issued to everyone at US President Clinton's second inauguration. After the insertion of a card into the reader, individuals were automatically granted or denied access. (Verifone, 1997)

In health care, smart cards are used toward generalized healthcare coverage and to support more government's laws to protect individual data privacy. The mobile nature of today's healthcare administration necessitates immediate information access and total flexibility. Smart cards technology can help to optimize portable solution for information access, management and improved communication among a variety of professionals involved in the healthcare administrations. Pregnant women in Blois, France can monitor their pregnancies through medical records on smart cards. By 2005, a smart card manufacturer, Schlumberger, estimates that more than 250 million patients in Europe and Asia will own healthcare smart cards (Verifone, 1997).

SECURITY ISSUES
Smart cards offer more security and confidentiality than other financial information. It is a safe place to store valuable information such as account numbers, passwords, transactions history, or personal information. It is also secure enough to execute processes that are not to be exposed to the rest of the world, such as performing private key encryption.

FUTURE OF SMART CARDS

Based on research by Ovum Ltd., the market for smart card units will reach 2.7 billion by year 2003. According to recent study by Dataquest, the overall market for memory and microprocessor-based cards will grow from 544 million units in 1995 to 3.4 billion unit by 2001. Of that figure, microprocessor-based smart cards, which accounted for only 84 million units in 1995, will expand to 1.2 billion units in 2001 Smart cards activities are growing 30% a year, mainly outside United States. Over the next 5 years, the industry will experience stable growth, 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. services worldwide. Asia, 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. It is not only small, but the security can also be guaranteed.

development, people are looking for smaller and smaller way to carry data with them. Thus, smart cards are

While most smart cards today only carry one function, there are smart cards that may be used for more than one function. This kind of card for example can store tickets information, money, frequent flyer miles and travel preferences.