Smart CardDebit CardCredit Card

PurposeSecured storage value of information and moneyTo act as a payment card against the balance held by a customer in his/her account in merchant shops, who accept these cards in lieu of payment in cash. Presently usable for even utility payments and also through internet.To act as a payment card on credit for some period at select outlets of merchants who accept these cards in lieu of payment in cash. Presently usable for even utility payments and also through internet.

What is it A smart card, typically a type of chip card, is a plastic card that contains an embedded computer chipeither a memory or microprocessor typethat stores and transacts data. This data is usually associated with either value, information, or both and is stored and processed within the card's chip. The card data is transacted via a reader that is part of a computing system. Systems that are enhanced with smart cards are in use today throughout several key applications, including healthcare, banking, entertainment, and transportation. These types of cards can be issued by any organisation based on their usage., not limited to banks For example SIM card in a GSM is also an example of a smart card. Loyalty cards given by top brands, transportation, Hospitals, Gaming, where the value can be stored exclusively for their own use Can be used for Physical Access to buildings For e-commerce payments Now a days Debit cards come with the embedded chip are also Smart Cards.Debit cards are issued by banks to be used against the balances held by the customers in their account.

The magnetic stripe on the back of a Debit card has your financial information accessible for transactions.This stripe technology is still considered the universal standard for identification purposes. No further information is accessible on your credit card except your credit card number. Your account information can be stolen from a credit card with equipment easily available for purchase by the general publicCredit cards are given to customers after assessing their credit worthiness by the banks

The magnetic stripe on the back of a credit card has your financial information accessible for transactions. This stripe technology is still considered the universal standard for identification purposes. No further information is accessible on your credit card except your credit card number. Your account information can be stolen from a credit card with equipment easily available for purchase by the general public.

Why these cards. (Advantage)Improved convenience and SecurityThe data in the chip is encrypted and hence securedOne card can access transactions, like usage in ATM, Purchases, can be used as Identity clearance, secured storage of data.Reduces fraudInformation in the card cannot be erased

Convenience, card readers are inexpensive, standardised technology over the decadesConvenience, card readers are inexpensive, standardised technology over the decades

How this is useda) Smart cards can be used to store information in a secured way like ID cards b) It can be used as a payment mechanism as it has stored value in a secured way. Today Many of the debit cards/ATM cards have come with chip embedded and acts as a smart card.Used on any type of payments including utilities and internetUsed on any type of payments including utilities and internet

Disadvantages Too much data in one card, when compromised by loss and hacked by computer experts Availability and usage of chip based readers for usage across shopping outlets Expensive card readersNot very secured. Financial information can be easily compromised and many frauds have taken place.Prone to attacks like skimmingwhere fraudsters, skim the data from the magnetic stripes without the knowledge of the customer and use itNot very secured. Financial information can be easily compromised and many frauds have taken place.Prone to attacks like skimming where fraudsters, skim the data from the magnetic stripes without the knowledge of the customer and use it