Explanation of How Smart Cards Work

Smart cards are a more secure and safe way to perform financial transactions. Smart cards are now widely utilized in practically every economy throughout the world, and almost everyone who earns a paycheck uses them. The aim behind a smart card is to eliminate the outdated practice of individuals carrying cash about and feeling uneasy because of prying eyes and countless examples of heists related to moving big sums of money around. Smart cards, in essence, provide a safer and more secure way of completing financial transactions while also making life easier in a cashless environment. 

Smart Card

Smart-Cards are a type of portable storage device that can be used in several applications that require limited access to sensitive data. It’s about the size of a credit/debit card and has one or more integrated circuit chips inside. It performs the functions of a CPU, memory, and an input-output interface. In several scientific and technical domains, the Worldwide Organization for Standardization (ISO) establishes voluntary international standards. However, the International Organization for Standardization (ISO) has yet to develop any standards for “Smart Cards.”

Why are they referred to as “smart cards”?

They’re called smart cards because they’re more than simply cards; they’re cards that include a significant quantity of private information and data that can only be accessed by the card’s owner.

These cards contain memory chips integrated into them, which are microprocessors capable of storing a large amount of data about their users. These users can use the technology to conduct online financial operations like purchasing without having cash on hand, paying bills, and transferring funds to a third party.

The cards have become smarter as a result of the inclusion of microprocessors, which allow them to store information and utilize it as needed.

How does Smart Card Works?

Smart cards look and feel like conventional cards (they’re the same size and made of the same plastic), but they have a memory chip embedded in a contact pad. The touchpad with the integrated memory chip serves as the foundation for a smart card transaction. The card is no longer smart after this contact pad is removed. Smart cards are similar to conventional cards, except they contain a memory chip hidden inside a contact pad. Smart cards cannot operate without the use of a smart card reader. When the smart card’s issuers have inscribed some necessary personal information onto the card, you’ll need a card reader to insert the card, type in your security code, and complete any transaction.

It is the contact pad that makes physical contact with the card reader and, as a result, creates an electronic connection with the card reader.

This then allows you to complete transactions via a Point of Sale (POS) system and other methods. Some smart cards, on the other hand, do not need a card reader interface to work; contactless cards are becoming more popular as a result of their ease. Over a serial interface, smart card microprocessors or memory chips interchange data with card readers and other devices. The smart card reader, in most cases, is the source of power for the smart card.

Smart cards communicate with readers either through direct physical touch or through the use of RFID or another short-range wireless communication technology. Data is stored in the card’s chip or processor, which is accessed via the card reader. The card’s processor houses a simple operating system (OS) that allows the card to store, transport, and protect data.

Over a network connection, the card reader sends data from the smart card to its destination, which is commonly a payment or authentication system.

Contactless Smart Card

Contactless cards just need to be close to a card reader; no direct touch is required. Both the card and the reader have antennae and communicate through a contactless link utilizing radio frequencies. The antennas are usually copper wires that wrap around the card’s edge.

How does Contactless Card work?

Contactless smart card systems and contact smart card systems are closely linked. Information is saved on a chip integrated into the contactless smart card, just like it is in contact smart card systems. Unlike contact smart cards, however, the power given to the card and the data communicated between the card and the reader are accomplished without the need for contacts, instead of relying on magnetic or electromagnetic fields to both power and exchange data with the reader.

The antenna of a contactless smart card is attached to the card’s plastic body (or to a key fob, watch, or another object). A microchip in the card is activated when it is placed in the reader’s electromagnetic field.

When a contactless smart card is brought close to a card reader, the following four functions define the sequence of events at a high level:

• Transferring energy to the card to power the integrated circuit (chip)
• Transfer of the clock signal
• Transfer of data to a contactless smart card
• Transfer of data from a contactless smart card

As a result, the card will be powered up and ready to communicate with the reader once it is placed within reach of an electromagnetic field of the proper frequency.

Conclusion

The security that smart card technology provides consumers is its main selling point. Users can store personal information such as bank records, student identities to gain access to exclusive libraries, company identity cards to gain access through computerized security checkpoints, phone contacts as in sim cards, and many other benefits that ensure the security of personal data with the smart card.

Shopping is becoming more convenient as the need for cash fades into shortage and the convenience of making payments spreads. Smart cards are here to stay and will continue to play an important role in our technological life for many years to come.