Smart Card Technology: What They Do and How They Work?

In this modern era smart cards have made their place quite easily. Almost everyone nowadays holds a smart card in their pockets or wallet. 

Now smart cards can be seen everywhere. Smart cards are being used for money transactions to marketing purposes. 

This small card with a chip has become an essential part of human life. A smart card is a type of physical card that contains an integrated chip embedded in it. 

Thi8s chip acts as a security token for the data stored inside it. The size of smart cards is like a typical driver’s license, not too big and not too small. 

The material from which they are made is normally plastic or metal. 

Smart cards are sometimes called a small portable computer without the mouse and keyboard part, this shows how versatile and advanced smart cards are. 

Smart cards the most common type of IT processing power in the modern world. 

With that being said, to know more about these smart card technology, do give cardxe digital business cards a shot. 

How Smart Cards Work?

Smart cards contain a small electronic chip embedded in them. This chip is the main component of the smartcard, without it, the smartcard is just a rectangular piece of plastic or metal. 

The chip embedded within is activated by coming in contact with a little bit of voltage. The voltage comes from a card reader. 

An external power source like a card reader is used to power a smart card or the chip within a smartcard to be specific. 

The microprocessor of a smartcard uses a serial interface when exchanging data with card readers and other systems. 

Direct contact or using short-range wireless connectivity are two ways in which a smart card communicates with a smart card reader. 

The card reader then sends all the data stored within the smart card to its designated destination which is usually a money transaction.

Uses of Smart Card:

The main purpose of a smart card is to save time by working efficiently and saving time. 

Smart cards are usually used in such places which require fast delivery and services, secure and encrypted money or good transactions, and the dire need to protect one’s personal information. 

Smart cards are also sometimes used to document legal documentation like visas, passports,s or government documentations. 

Smart cards which are affiliated with ATMs or back accounts are encoded and most of the time a pin code is set up to protect the data within. Multinational companies use smart cards for security purposes. 

The identity data of the members is encoded within the microprocessor of the card and then passes through a card reader the identity of the person can be accessed. 

Types of Smart Card:

There is a big variety of smart cards. They are categorized into different groups and this categorizing mainly depends on how the card reads and stores the data, which type of chip is embedded in the smart card, and what the special capabilities of the embedded chip.

The following are some types of smart cards.

Contact Smart Cards:

These cards are the most common type, they can be seen almost everywhere and their usage is greater than compared to other types of smart cards. 

The card reader comes in direct contact with the conductive contact plate which is forged onto the surface of the card. 

Data and card values are transmitted along with these contact points between the card reader and the conductive plate.

Contactless Smart Cards:

This is an advanced type of smart card. This is also read via an electronic card reader. 

But a physical contact between the card and the card reader is not required to transmit data. 

Contactless smart cards contain a built-in antenna and data can be transmitted by only putting the card within close proximity of the card reader. 

Dual-Interface Cards:

These types are cards are made with both contact and contactless interfaces which ensures a secure connection to the smart card chip.

Memory Smart Cards:

These types of cards come with a memory chip only. The data stored within the smart card can be changed or over-written but the card itself can be programmed. 

These types of cards are read-only and contain passwords or PIN codes that are used to modify the user data. 

The configuration of memory smart cards can be changed and they can be made to be disposable or rechargeable that’s because they contain data that is used only once over a limited time period.

Microprocessor Smart Cards:

These types of cards have a microprocessor that is built into the chip including the memory blocks.

Different sections of files which are allocated with different kinds of functions can be incorporated within the card.

This is a multitasking card that can be used for more than one type of purpose. 


As stated above, the smart card happens to be a thing of the modern era. Since the day these cards have been introduced to the people, they have managed to create quite a fandom of their own. 

But there is a reason behind this stated fact. The smart card has made life for people, especially for business owners and young entrepreneurs much easier. 

Being a result of innovative technology, all we can say in praise of smart cards is that these are simply incredible! 

In this guide, we have tried to cover each and everything that you might need to know about smart business cards. 

Relate to this guide whenever you feel the need to enrich yourself with a proper understanding of the smart cards.

With that being said, do get a smart card for yourself, and witness what hidden benefits it comes stored for you! 

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