Smart Cards – Visa PayWave and MasterCard PayPass Contactless Credit Cards
Posted March 25th, 2010 and last modified December 7th, 2011
Able to detect a credit card reader and to store information, Smart cards and Contactless credit cards certainly redefine consumer transactions.
Smart Cards & Contactless Credit Cards available in Australia
Smart cards are the newest innovation in credit card security. These cards contain an embedded integrated circuit chip that is either a secure micro controller or a device with internal memory. By using direct contact or remote contactless radio frequency the card interfaces with a reader whenever you make a transaction. These cards are able to store significant amounts of information and carry out certain functions like encryption and mutual authentication. They can even interact in an intelligent fashion with the smart card reader.
Technology of smart cards
Smart cards conform to international standards, ISO/IEC 7816 and ISO/IEC 14443. They are available in many forms cards, fobs, and SIMS (subscriber identification modules) in GSM mobile phones, and USB tokens.
They can either be contact or contactless:
- Contact cards need to be inserted or swiped in a smart card reader that has a direct connection to a conductive contact plate on the surface of the cards. These physical contact spots transmit the commands, data, and card status.
- Contactless cards only need to be close to the reader. The card and the reader both have antennae and communicate through radio frequencies. The range is about one -half to three inches making them good choices for things that need a fast card interface.
Visa PayWave Contactless Credit Cards Comparison
MasterCard PayPass Contactless Credit Cards Comparison
There are also dual interface cards and hybrid cards:
- Hybrid cards have two chips. One for contact and one for contactless interface, these to chips are not connected.
- Dual-interface card has on chip that has both contact and contactless interface.
Chips used in smart cards are either micro controller chips or memory chips:
- The memory chip is similar to a floppy disk with added security. They are less expensive and have a less security control then micro controller chips.
- Micro controller chips have the ability to delete, add, and manipulate the data in its memory. It works like a mini computer that has an input and output port, an operating system, and a hard disk.
Choosing the technology of a smart card depends upon many issues including how it will be used, the market it will be used in, the budget set for it in your business model, and the plan for shared application cards.
Some of the ways these cards are used include the following:
- Secure identification like employee badges, citizen identification documents, electronic passports, online authentication, and drivers licenses.
- Healthcare applications like portable medical records and patient or physician identification cards.
- Payment applications with credit or debit cards and transit payment cards.
Smart cards are the wave of the future. It is not science fiction to think that in the very near future we will all have one card that contains all of our personal, financial, and medical information stored on it.
Image source: Asim Bijarani
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
 |
 |
 |
 |
0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
|
|
|
|
Subscribe to our newsletter and get "The Ultimate Guide to Balance Transfers"
If You Like This Post...
Get all the latest deals, guides and loopholes go in Credit Card Finder's free bi-monthly email. Don't miss out - join the thousands who get it emailed!
Ask A Question