First founded in 1983 with a French card for pay phones, the smart card comes inbuilt with a memory chip. So, what exactly is a smart card, and how does the smart card payment system work?
Most products and services are available to customers over the Internet or other networks. Paying for these services require a more robust and useful platform than the traditional payment methods of cash, checks, credit card, or debit card. At such times smartcard payment systems are more suitable. You must consider a few factors when analyzing electronic card payment system options, such as
- customer needs and benefits,
- developmental and operational costs,
- corporate benefits,
- continually changing technologies,
- the critical mass of customers, security,
- standards of payment systems, and
- customer perception and comfort with new technologies.
Read on to learn more about smart cards.
Smart cards are a way of making payments or carrying easily scannable information. They come with an inbuilt integrated chip that links to a smart card reader either through wireless connectivity or physical contact. The cards are usually made of plastic, although you find them in the metal too.
All essential information for transaction processing is encrypted and retained on the smart card’s chip, which also serves as a security token for various applications.
A few smart cards include a microprocessor and memory chip to offer greater functionality, while others will only have the memory chip. However, in both cases, there’s no need to contact remote databases to confirm and process a transaction. All the information you need about the user is available on the card.
Types of smart cards
You will find different smart cards, each designed for slightly different functions.
Contact smart cards are the type you must have come across. The card is inserted directly into the smart card reader. A conductive contact plate on the card’s surface physically links to the card reader’s touchpoint, allowing the two to exchange information.
Contactless payment cards are becoming increasingly common after the recent pandemic. It requires no physical contact with the card reader. Instead, the card uses wireless radio frequencies to connect to the card reader antennae. You can place the card near the reader to activate and confirm the transaction.
Dual-interface smart cards combine the two capabilities of both contact and contactless cards. These hybrid cards are simple to use in any setting.
Microprocessor smart cards include a memory chip and a built-in microprocessor for increased function. The card’s data is manageable with smart card reader software.
Here are a few advantages of contactless payment cards over magnetic cards.
- More secure
Unlike magnetics, smart cards ensure better storage and secure data reading and writing because of excellent encryption algorithms and electronic keys. These cards are difficult to hack, forge, or reproduce. Previously, there have been numerous fraud cases with magnetic cards while in transit due to poor security and technology. Contactless smart card technology is deployed at multiple agencies worldwide, and there are no substantial fraud reports because of inferior quality technology. Investing in a smart card is a step towards security and fraud prevention.
- Smart cards are more trustworthy, quicker, and reduce maintenance costs.
If you are still deciding whether to upgrade from magnetics because of the cost factor, consider the long-term benefits of security, reliability, and low maintenance costs. Most of these touch-free payments are a lot quicker than the EMV chip.
It takes only seconds to complete a transaction in a better, safer way. The card is with the consumer without exchanging hands, eliminating physical touch risks. Lower maintenance can cover the higher upfront transaction costs.
- Ease of transaction
There are no forms to fill, search for tickets, feed into machines, or navigate a turnstile. However complicated a transaction might be, it does not take more than 300 milliseconds to complete. It will look simpler as people get used to doing more transactions.
- Transact on the move
Today, consumers are doing most of their transactions from their phones or tablets, and more and more customers use their mobile devices to keep an account of their card information. Hence, touch-free payments give your business and customers the ease of processing transactions anytime and anywhere.
Some payment facilities allow customers to have their transactions processed over the phone, while others enable customers to enter their card information remotely from their phones. Allowing the customers the freedom to transact from anywhere is a plus point for a business and customer while enhancing the customer experience.
What is the Fingerprint Sensor?
A fingerprint sensor comes with an inbuilt fingerprint detection module that ensures accuracy, better performance, and robustness based on complete fingerprint biometric technology. Fingerprint scanners or readers are highly safe & suitable devices for safety instead of secret passwords. Passwords sometimes are easy to hack, and users often fail to remember them.
Instead, it is more convenient to use a fingerprint scanner or reader using biometric software for confirmation, identification, and authentication, which allows your fingerprints to work similarly to digital passwords. You don’t have to worry about forgetting the passwords or being stolen.
Features of Fingerprint Sensor
- It contains image collection as well as chip algorithm
- The fingerprint reader performs effectively and can be fixed into a range of end products
- Energy-efficient, seamless performance, compact, affordable,
- Developed with optical technology and exact module-developed techniques
- Image processing capabilities are good and can effectively capture pictures up to 500 dpi resolution.
How does it work?
The working principles of the fingerprint sensor working process mainly include enrollment and matching.
In fingerprint enrollment, the users place their finger twice. The system checks the finger images to process and generate a pattern of the finger and store it.
In fingerprint matching, a user places the finger using an optical sensor which enables the system to capture and produce a pattern of the finger & compares it with the finger library templates.
The bottom line
There are abundant benefits to smart card technology. Smart cards are more secure than magnetic stripe cards because you don’t require to connect remotely to any separate data processing center.