This microprocessor can store memory and can also be used as a cash or credit card with a pre prescribed limit. Many companies have started replacing the traditional credit card with new age smart cards to curb frauds and protect the customers from hackers. Let us now discuss why smart cards are considered to have an edge over credit cards.
Secure Transactions
When using a credit card, you just swipe the magnetic strip of the card. This strip can be read, written over and duplicated easily leading to theft and different security breaches. On the contrary, the microprocessor used in a smart card is impossible to copy due to the cryptographic algorithms used in them. The traditional attempts to hack the card by making a duplicate card would not work in most of the cases. However, if the card falls in wrong hands, fraudulent purchases can be made by them. So be sure to get them disabled if you lose them.
Storage and Programming
A smart card can be used to store applications and information. They are not just to store bank or credit details like in a credit card. It can even store keep emergency medical information, phone calling cards or driver license number. There are many colleges that issue smart cards to the students that help them in gaining success to several buildings and also make purchases.
Reader Requirements
Smart cards have special reader requirements but they can also be used at locations where debit card and credit card readers are there. The only difference is that instead of swiping, smart cards are inserted into the writer. There are many contactless smart cards that do not require any contact with the reader. You just need to require your PIN or sign for completing the transaction.
Risk of Damage
Even though smart cards are not as susceptible to damage as the magnetic strips of credit card, they are not invincible. They can get damaged through physical or chemical changes. Extreme cold, heat and many environmental factors can damage the microchip too making it completely unreadable.
Conclusion Do remember, smart cards have found application as credit card and other banking devices because of their ability to provide a safe and reliable transaction process to the customer as well as the bank. Apart from being a payment option, they provide more benefits to all. After all, with the increasing number of fraudulent activities on the rise and more and more dependence on the plastic money, it is becoming more and more important to switch to a safer alternative and keep your hard earned money secure. If you are looking for answers regarding more financial queries, call our financial experts today and get the right advice.
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