SMART CARD TECHNOLOGY

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SMART CARD TECHNOLOGY

• Prepared by

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What is Smart Card ?

• A smart card is a credit-card sized plastic card
  embedded with an integrated circuit chip that
  makes it "smart".
• It is the latest addition to the world of I.T.
• It is having multi purpose use.
• It provides data portability,security and
  convenience.

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Introduction

• This marriage between a convenient plastic card
  and a microprocessor allows an immense amount of
  information to be stored, accessed and processed
  either online or offline.
• Smart card contains both the data and the means
  to process it, information can be processed to
  and from a network without changing the cards
  data.
• Smart cards are portable, users can carry data
  with them on the smart card rather than
  entrusting that information on network storage or
  a backend server where the information could be
  sold or accessed by unknown persons.

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Classification of smart card

• CONTECT BASED CONTECTLESS
• MEMORY MICROPROCESSOR
• PC-CARDS

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CONTECT BASED CONTECTLESS

• Contact smart cards are inserted into a smart
  card reader, making physical contact with the
  reader.
• However, contactless smart cards have an antenna
  embedded inside the card that enables
  communication with the reader without physical
  contact. A combi card combines the two features
  with a very high level of security.

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MEMORY MICROPROCESSOR

• Memory cards simply store data and can be viewed
  as a small floppy disk with optional security.
• A microprocessor card, on the other hand, can
  add, delete and manipulate information in its
  memory on the card. Similar to a miniature
  computer, a microprocessor card has an
  input/output port operating system and hard disk
  with built-in security features.

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PC Cards

• While any IC-embedded card may be called a smart
  card, its distinguishing feature is its use for
  personal activities.
• For example, PC cards have the same
  characteristics as a smart card but they are used
  as peripheral devices such as modems or game
  cartridges.
• These PC cards are seldom called smart cards
  since they are extension devices without
  personalization. In this sense, a smart card is a
  processor card that allows persons to interact
  with others digitally to conduct transactions and
  other personal activities.

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Categories of Smart card

• Integrated circuits (IC)
  microprocessor cards.
• Integrated circuits memory cards.
• Optical memory cards.

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The way smart card is used.

• Very useful in global market place.
• Use of smart card has expanded each year
  to include application in a variety of markets
  and disciplines.
• The most important fields where it is
  used is as described.

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Information Technology

• To make the information readily available to
  the person on the spot.
• To protect the personal information
• From hackers,virus and unwanted instructions
  means bulks.

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Mobile Technology

• People using the Global System for Mobile
  communications (GSM) standard for mobile phones
  use smart card technology. The smart card is
  inserted or integrated into the mobile handset.
  The card stores personal subscriber information
  and preferences that can be PIN code protected
  and transported from phone to phone.

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Commercial Applications.

• Smart cards also provide benefits for a host of
  commercial applications in both B2B and B2C
  environments. The smart cards portability and
  ability to be updated make it a technology well
  suited for connecting the virtual and physical
  worlds, as well as multi-partner card programs.
  The cards store information, money, and/or
  applications that can be used for
• Banking/payment
• Loyalty and promotions
• Access control
• Stored value
• Identification
• Ticketing
• Parking and toll collection

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Security

• smart card can restrict the use of information to
  an authorized person with a password.
• However, if this information is to be transmitted
  by radio frequency or telephone lines, additional
  protection is necessary.
• One form of protection is ciphering (scrambling
  data). Some smart cards are capable of ciphering
  and deciphering, so the stored information can be
  transmitted without compromising confidentiality.
• Smart cards can cipher into billions of foreign
  languages and choose a different language at
  random every time they communicate.
• This process ensures that only authenticated
  cards and computers are used and makes hacking.

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• It provides
• Secure card management.
• PIN management.
• Automatic card lock.
• Automatic log out.
• So we can say ,
• A perfect solution for the e-commerce
  transaction.
• A safe place to store valuable information.

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multi purpose card.

• Supports different types of application in
  different fields on the card itself.Such as.
• Banking.
• Online business.
• Air way Reservation.
• Shopping.
• And many more.

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Standards and platforms.

• A number of international standard bodies have
  concerned themselves with developing basic
  standards governing the physical and logical
  attributes of smart card.
• Several countries are establishing different
  standards for the national schemes that is very
  useful for interoperability.

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Application Areas

• PUBLIC TELEPHONY
• MOBILE TELEPHONY
• BANKING
• LOYALTY
• PAY-TV

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How portable ?
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Smart card in uses

• Worldwide smart card sales could reach 1.6
  billion units in 1998.
• Western Europe accounts for about 70 of the
  current smart card uses.
• However, most smart cards issued today are
  memory cards (see Table) with limited processing
  capabilities. Still, hundreds of millions of
  processor cards are already in use today.
• Phone cards have become ubiquitous in Western
  Europe and Asia where coin-operated public phones
  are becoming nearly obsolete.
• However, processor cards are projected to be the
  fastest growing smart card uses by the year 2000.

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• A smart card begins with a micro-controller
  produced by semiconductor manufacturers such as
  Siemens, Motorola and Thomson.
• This integrated circuit chip is attached to an
  electronic module by inserting into a cavity on
  the module.
• Then, terminals between the chip and the
  electronic module are interconnected. Finally,
  the chip-embedded electronic module is glued to a
  plastic card.
• The global leader in card manufacturing is
  Schlumberger who sold about half of all smart
  cards in use in 1997.

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Smart card advantages

• Full Portability of Services
• International Roaming
• Intersystem Roaming
• Multiple Services on a Single Card
• Separation of Business and Personal Calls

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Smart card advantage

• Brand Recognition
• Customer Loyalty Programs
• Direct Marketing
• Advertising
• Trial Subscriptions

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Advantage over checks

• Reduced handling costs
• Improved ease of use
• Lowered costs in infrastructural supports such
  as banking system and phone networks
• Versatility of combining credit, debit and
  stored value cards in one convenient platform
• Lower transaction costs
• Ability to carry out offline, online and
  peer-to-peer transactions

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A drive towards cashless society

• Smart cards were first developed as a payment
  method to simplify small value transactions.
• This has proven to be useful in Western Europe
  and Asia where public transportation and public
  phones are widely used.
• In North American, the popularity of checks,
  credit cards and debit cards makes smart cards a
  less attractive alternative.
• . In some countries, the increasing use of smart
  cards is also leading to advancements in banking
  services and the acceptance of credit and debit
  cards by consumers.

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Smart card Payment system
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Conclusion

• SMART CARD IS ADVANCED STEP TOWARDS CASHLESS
  SOCIETY AND PERSONAL AUTHENTICATION.

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Latest Practical Application

• The Smart Village
• Resort and Park Management
• Smart Cards in PKI