Smart Card Applications

A smart card does not perform any amazing tasks. A smart card, however, can perform all the transactions that are now carried out by magnetic stripe card or a plastic card plus many other computing tasks. A smart card can also store information in a secure format.

Consider a few scenarios where we use plastic cards these days:

• Loyalty Programs.
• To identify us.
• Conventional Telephony.
• Access Control.
• As credit cards.
• To obtain cash from the banks.

Across the world today, smart cards are used in:

• Banking (e.g. debit/credit transactions).
• Retail (e.g. loyalty schemes, electronic cash, frequent flyer points).
• Telecommunications (e.g. SIM cards).
• Security (e.g. access control).
• Health (e.g. patient records, pharmaceuticals).
• Transport (e.g. road tolls, parking fees, bus fees).
• Satellite TV.
• Government identification (e.g. Passports, Border Security Cards ).

Smart cards can be used along with a smart-card reader attachment to a personal computer to authenticate a user. Web browsers also can use smart card technology to supplement Secure Sockets Layer (SSL) for improved security of Internet transactions. Visa's Smart Card FAQ shows how online purchases work using a smart card and a PC equipped with a smart-card reader. Smart-card readers can also be found in mobile phones and vending machines.

Smart cards contain unique features.

• Chip is tamper-resistant.
• Information stored on the card can be PIN protected and/or read-write protected.
• It is Capable of performing data encryption store keys, e.g., authentication, file encryption. More.
• Smart Cards are Capable of processing (not just storing) information.
• You can update Post-issuance of information and application.
• With Restricted API A smartcard exports a minimal set of interfaces to avoid exporting flawed interfaces that lead to vulnerabilities.
• Mobility A user can carry a Smartcard, physically separating it from the outside world.

Based on numbers, pre-paid telephone cards seem to be the most common smart card application. Often such applications are reloadable. Value can be added to a card by paying the dealer. This ensures repeated usage of the smart card. Along with conventional telephony, cellular phones also use smart cards. The SIM card that is inserted into a cellular handset is nothing but a smart card.

The advent of smart cards has allowed banks to replace their current cards [ATM, Debit, Credit Account, Travel and Entertainment Cards] with one card. Smart cards are also being used in quite a few countries as electronic purses. Along with banks, many retailers have started using smart cards as Loyalty Cards.

Health care is another sector where smart cards are making their mark. Versichertenkarte in Germany and Sesam Vitale in France are examples of schemes using Smart Cards in health insurance schemes. Over 80 million such cards have been issued.

Smart cards are currently being used for fast ticketing in public transport, parking and road tolling in many countries. South Korea issued 1.5 million cards for public transport and is the largest user of smart cards in public transport. In India, Indian Railways Delhi Metro is also using smart cards with currency loaded for ticketing purposes.

Many universities and schools are using smart cards for ID purposes. Vishveshwarya Institute of Technology (VTU) and Rajiv Gandhi University of Health Sciences (RGUHS) These ID cards can also be used at the library, canteen, vending machines and other services on the campus.