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1-min read

Why Smart Cards Are A Better Option than Normal Credit Cards

A smart card has a specially embedded microprocessor, which is a computer processor on a microchip.

Anshika Bajpai |

Updated:February 13, 2019, 12:18 PM IST
Why Smart Cards Are A Better Option than Normal Credit Cards
Image for representation.

While credit cards and smart cards might look alike, they are certainly different from the inside. A smart card has a specially embedded microprocessor, which is a computer processor on a microchip. If you look on the side of the card, there is a gold pad under which lies the microprocessor. A credit card, on the other hand, has a magnetic strip without anything on its inside.

Smart cards have memory storage in their microprocessors and thus, can be used to access data stored in the chip. They can also be used as cash cards or credit cards with a specified credit limit and even as an ID card with stored passwords.

Why do smart cards have an edge over credit cards?

1) When you shop using a credit card, you are supposed to swipe your card and then sign which can be easily read, written, altered or duplicated. The microprocessor in smart cards makes it almost impossible to be breached due to cryptographic algorithms.

2) If you lose your smart card then it can be disabled right away and once it’s done there is no way anyone can access the information stored in it.

3) A smart card can be used to store information in it. Other than your bank account details, you can link your emergency contact information, driver’s license or even phone calling cards.

4) Smart cards can’t be swiped and used. They require special readers in which you insert the chip side of your card. There are also ‘contactless’ smart cards that read the information with the use of Radio Frequency Induction Technology to send money. All these technologies are much better and safer than normal swipe and sign.

That being said, smart cards have now found its application in credit cards and other banking devices too. It is a means to convert a normal credit card into a more secure and reliable smart card by giving it more benefits than just being a payment option.

With fraudulent activities on the rise and more dependence on plastic money with each passing day, it is important that you switch to smart cards and make your hard earned money safer.

To know more, click here.

This content has been created in association with YONO SBI.

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