Increase use of smart cards would be more beneficial in the USA. Information Technology has introduced may innovative ideas, among them is a smart card. “A smart card, typically a type of chip card, is a plastic card that contains an embedded computer chip–either a memory or microprocessor type–that stores and transacts data.”1 It can function as a credit/debit card, identification card for an organization/institution, utilized to manage health records and enterprise/network security. “The primary purposes of including a chip in a bank card are to store cardholder data securely, protect data stored on the chip against unauthorized modification, and reduce the number of fraudulent transactions resulting from counterfeit, lost, and stolen cards.”2
There are three types of smart cards: contact, contactless and a combination card. Contact cards need to be slide/swiped to a reader to access information. Contactless cards can be read by radio frequency (RFID) a few inches off the reader for the reader to receive information. Combination card, often called Multifunction card, has a microprocessor to store data. An example of a multifunction card is our college ID card, which also allows us to use it as a debit card too. Each card type comes with a set memory, so the consumer can decide which is most appropriate for their usage.
EMV, (Europay, Mastercard, and Visa implemented) provides global standards for chip based cards. EMV gives certification/approvals to appropriate parties involved. These include: Terminal Type Approval, Security Evaluation, and Card Type Approval. “A primary goal of EMVCo and the EMV Specifications is to help facilitate global interoperability and compatibility of chip-based payment cards and acceptance devices.” 3 Many countries, with the exception of USA, have been using smart cards rather than credit/debit cards. United States did not have a need to implement the smart cards due to its very low fraudulent rate and the near perfect security system of the software. For several reasons, US payment industry is thinking about implementing the EMV system. One, the credit card loss rate has increased identity theft. Second, the manufacturing cost of the smart card has decreased. Third, when we travel to foreign countries, our cards are sometimes rejected because payment terminals are not compatible to our cards. And lastly, to keep up-to-date with modern technology of contactless cards, this is a perfect opportunity to implement the smart card system.
The encrypted codes used in smart card makes it difficult for someone to steal card information. It makes it easier for employees to access something that requires user ID and passwords. Use of smart card is globally accepted, so joining the movement will only be more effective and efficient for the USA.
1) Smart Card Basics, http://www.smartcardbasics.com/smart-card-overview.html
2) Card Payments Roadmap in the U.S.: How Will EMV Impact the Future Payments Infrastructure?, Smart Card Alliance, February 2011, http://www.smartcardalliance.org/pages/publications-card-payments-roadmap-in-the-us
Interesting article, we use contactless smart cards for at work to give us access to secure areas. The cards are entirely blank, so while someone in the company would know what it is and how to use to it, if the card was found on the street there is little to worry about. No data can be removed from it and it is impossible to know what building / room the card would work in.
ReplyDeleteVery interesting article about Smart cards and the different types the come in. Thinking of my credit cards, I have contact credit card and a contactless one. Chase bank offers a feature called Blink where when your ready to checkout at a store,those with compatible terminals allow you to wave your credit card 2 to 3 inches above the terminal and it automatically processes the transaction. This credit card would be considered both a contact and contactless because it can be charged either way. I am also familiar with what Michael was talking about, the company I used to work at supplied us with smart card ID's which had to be waved in front of the door sensor for it to let you in and out of the building. Very secure type of technology, its a shame the US has not implemented these smart cards more into our business world. Give it another five years and see how involved smart cards are being used in our world. Smart cards can be considered technology of the future.
ReplyDeleteI have been using smartcards without actually knowing it, prior to reading this article. At my job, I use a smartcard to swipe into the building. The security system they have at the school I work at is very sophisticated. I need a key along with the smartcard to get into certain rooms and such. Also, to get into my bank ATM after store hours, I need to swipe my debit card to gain access to the ATM room. The main purpose of these for the way I use them would be for security. Obviously people want to be safe and secure at the ATM because it is dealing with money. In the school setting, the smartcards probably keep kids from entering certain rooms, which keeps them in a location where teachers/administration would know where they are.
ReplyDelete