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A smart card, which houses a microprocessor for storing data, is an important piece of computer hardware. Explore more images of computer hardware to see how it works.
©iStockphoto.com/Jonathan MaddockWhile a smart card looks similar to a credit card, its internal structure is far more advanced. Unlike a regular plastic credit card, which lacks any internal technology, a smart card houses a microprocessor beneath a gold contact pad. This microprocessor replaces the magnetic stripe typically found on credit or debit cards.
Smart cards are widely used in Europe, particularly in sectors like health insurance and banking. For instance, every German citizen carries a smart card for their health insurance needs. Although smart cards have been in use for over ten years, they are just beginning to gain popularity in the United States.
Magnetic stripe technology is still widely used in the United States, but it has its security limitations. The data on the stripe can be easily accessed, modified, erased, or rewritten with readily available tools, which makes it unsuitable for storing sensitive information. To safeguard consumers, U.S. businesses have invested in vast online mainframe systems for secure verification and processing. In contrast, Europe did not rely on such infrastructure, opting instead to place intelligence directly within the card itself.
The microprocessor in a smart card is crucial for its security. The host computer and card reader communicate directly with the microprocessor, which controls access to the data on the card. Without this protection, the smart card's RAM would be no more secure than a basic diskette.
Smart cards can store up to 8 kilobytes of RAM, 346 kilobytes of ROM, 256 kilobytes of programmable ROM, and feature a 16-bit microprocessor. These cards utilize a serial interface and draw power from external sources like card readers. The microprocessor uses a simplified instruction set, which is ideal for tasks such as cryptography.
Here are some of the most common applications for smart cards:
- Credit cards
- Electronic cash
- Computer security systems
- Wireless communication
- Loyalty programs (such as frequent flyer points)
- Banking
- Satellite TV
- Government-issued IDs
Smart cards can be utilized with a smart-card reader connected to a personal computer for user authentication. Web browsers can also integrate smart card technology to enhance the security of Internet transactions alongside Secure Sockets Layer (SSL). Visa's Smart Card FAQ demonstrates how online purchases are made using a smart card and a PC equipped with a smart-card reader. Additionally, smart-card readers are available in mobile phones and vending machines.
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