Smart Card Forum
Smart Card Forum
Smart Card Forum
Smart Cards?
Smart Cards?
What’s so smart about
Smart Cards?
e-commerce
government
access control
wireless
campus solutions
loyalty
healthcare
banking
network security
transit
Cards?
ds?
Smart Cards?
Smart Cards?
Smart Cards?
Smart Cards?
Cards
We hope that you find this short overview on the smart card world educational and
informative. Since the Smart Card Forum was founded in 1993, the application of
smart card systems within North America has expanded and now, at the verge of the
new millennium, we see exciting possibilities for these systems. The Internet has cre-
ated enormous opportunities while it has also created privacy and security challenges.
Welcome to
We see smart card systems enabling privacy and security in this virtual world and as
a linchpin in creating increased high-assurance business to business commerce.
We expect you will find this brochure informative and hope you will take advantage
of the varied Smart Card Forum educational programs, workgroups, conferences, and
research materials in enabling privacy and security in your businesses.
Best Regards,
Smart
Donna Farmer
President and CEO, Smart Card Forum
Rémy de Tonnac
CEO, Gemplus Americas
Answers to Frequently Asked
Questions about Smart Cards
What is a smart card?
The smart card is one of the latest additions to the world of information technology. Similar in
size to today's plastic payment card, the smart card has a microprocessor or memory chip embed-
ded in it that, when coupled with a reader, has the processing power to serve many different
applications. As an access-control device, smart cards make personal and business data available
only to the appropriate users. Another application provides users with the ability to make a pur-
chase or exchange value. Smart cards provide data portability, security and convenience.
Information Technology
Businesses, the government and healthcare organiza-
tions continue to move towards storing and releasing
information via networks, Intranets, extranets and the
Internet. These organizations are turning to smart cards to make this information readily
available to those who need it, while at the same time protecting the privacy of individuals and
keeping their informational assets safe from hacking and other unwanted intrusions. In this
capacity, smart cards enable:
Wireless Communications
People using the Global System for Mobile communications (GSM) standard for mobile phones
use smart card technology. The smart card is inserted or integrated into the mobile handset. The
card stores personal subscriber information and preferences that can be PIN code protected and
transported from phone to phone. The smart cards enable:
Wireless providers benefit from reduced fraud thanks to the security offered by smart cards. With
the advent of mobile services such as mobile commerce, web browsing, and information services,
wireless providers rely on smart cards to act as the security mechanism to protect those services.
As a result, smart cards are beginning to move beyond GSM to secure mobile services for other
wireless standards as well.
Commercial Applications
Smart cards also provide benefits for a host of commercial applications in both B2B and B2C
environments. The smart card’s portability and ability to be updated make it a technology well
suited for connecting the virtual and physical worlds, as well as multi-partner card programs. The
cards store information, money, and/or applications that can be used for:
• Banking/payment
• Loyalty and promotions
• Access control
• Stored value
• Identification
• Ticketing
• Parking and toll collection
Multiple applications can be stored on the card, enabling partnering on card programs and pro-
viding added convenience to the card reader.
The International Organization for Standardization (ISO) has developed standards for smart
cards. These standards were developed for use by multiple industries. Individual industries are
now developing proprietary versions of these ISO standards to support their own specific smart
card applications. There are numerous standards developed by members of the Forum, and oth-
ers, to support and promote smart card standards.
What are the major benefits that smart cards offer consumers?
Smart cards contain unique features that bring many benefits to both consumers and issuing
organizations:
Feature Benefits
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 on a card can be updated without having to issue new cards
Convenience • chip is tamper-resistant
• Smart cards provide a portable, easy to use form factor that many are familiar with using
Meanwhile, Visa’s multiple application card strategy is based on providing applications that add
value to Visa’s core credit and debit payment products. A key component to Visa’s multi-applica-
tion offering is the flexible Open Platform technology. In addition to providing added application
security through the use of ‘firewalls’ on the chip, the Open Platform allows for downloading new
applications to the chip, without having to reissue the card.
Another multi-application program was conducted
at Florida State University where 40,000 smart cards
were deployed, which featured students’ personal
identification, dormitory security, banking, and a
wide range of stored value functions for the purpose
of food, payphone, photocopying, transportation and
vending services.
A standalone reloadable card (as opposed to a standalone disposable card) is very attractive to
some customers. This customer would tend to be someone who uses their stored value on a
frequent basis perhaps for public transportation, corporate cafeteria etc. and wants to be able to
reload the card on a periodic basis rather than have to buy a new card each time.
Smart cards have computational or processing power to provide greater security, allowing
verification of the cardholder. Entering a PIN is one method of verification, biometrics is another.
The benefit of the smart card is that you can verify the PIN or fingerprint securely, off-line.
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