Applications and uses for smart cards
Smart cards are capable of many different applications. Right now many of the uses have not been implemented in the US, but make no mistake, they are on their way.
Financial Industry
The financial industry has the most widespread adoption of smart card uses. In Europe, many debit and credit cards have smart card technology. Also banking networks have launched electronic purse projects. The US is relatively behind in adopting the different financial uses for smart cards.
Other Applications
Smart cards can also be used for Internet authentication, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, passports, and biometrics.
Advantages and Disadvantages
Smart cards are very portable and take the form of the familiar credit card. Where the typical magnetic card falls short, the smart card picks up. There are, however, disadvantages that make smart card implementation difficult, especially in the US.
Advantages
Security
Chip is tamper-resistant
Information stored on the card can be PIN code and/or read-write protected
Capable of performing encryption
Each smart card has its own, unique serial number
Intelligence
Capable of processing, not just storing information
Smart cards can communicate with computing devices through a smart card reader
Information and applications can be updated without having to issue new cards
Disadvantages
Sensitive information
People tend to be careless with regard to PIN’s and Passwords
If tampered with, much more information will be at risk
Money Crimes
Money Laundering
Counterfeiting
Tax evasion
Other
Adapting to new technology (terminals and schemes)
LOSS OF PRIVACY
http://komar.cs.stthomas.edu/qm425/02s/Dammann1.htm
Smart cards are capable of many different applications. Right now many of the uses have not been implemented in the US, but make no mistake, they are on their way.
Financial Industry
The financial industry has the most widespread adoption of smart card uses. In Europe, many debit and credit cards have smart card technology. Also banking networks have launched electronic purse projects. The US is relatively behind in adopting the different financial uses for smart cards.
Other Applications
Smart cards can also be used for Internet authentication, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, passports, and biometrics.
Advantages and Disadvantages
Smart cards are very portable and take the form of the familiar credit card. Where the typical magnetic card falls short, the smart card picks up. There are, however, disadvantages that make smart card implementation difficult, especially in the US.
Advantages
Security
Chip is tamper-resistant
Information stored on the card can be PIN code and/or read-write protected
Capable of performing encryption
Each smart card has its own, unique serial number
Intelligence
Capable of processing, not just storing information
Smart cards can communicate with computing devices through a smart card reader
Information and applications can be updated without having to issue new cards
Disadvantages
Sensitive information
People tend to be careless with regard to PIN’s and Passwords
If tampered with, much more information will be at risk
Money Crimes
Money Laundering
Counterfeiting
Tax evasion
Other
Adapting to new technology (terminals and schemes)
LOSS OF PRIVACY
http://komar.cs.stthomas.edu/qm425/02s/Dammann1.htm