What is a Smart Credit Card?
According to financial experts, majority of the US citizens have at least one credit card. They are fast becoming an important part of any financial transaction. They are the most widely recognized sources of identification, when somebody wants to rent a car or wants to reserve a room in a hotel. Various banking firms and financial institutions offer a variety of them to the customers based on their income level and needs. One such variation is the smart card.
A smart credit card can be described as an innovative pinjaman online ojk Kredit Pintar application of modern technology where better security features and secret codes are used to preserve the identity of the customer. History of a smart credit card goes back to 1984 when this type of card was first used in France. These cards have been introduced primarily to keep a check on the ever increasing problem of credit card fraud. A smart card involves application of all aspects of cryptography. In these cards, a small microprocessor chip is introduced into the card itself.
The way these credit cards operate is unique. Whenever the customer makes any transaction using a smart card, the identity code of the customer needs to the confirmed along with the card. Then the card and the card reader have to establish a connection between them, a process that usually occurs through encrypted signs present on the card. Once the contact is established, the transaction also occurs in an encrypted format, preventing even the customer to get a peep at the information, thus preventing the problem of anybody trying to defraud the system. The entire process is not visible to the customer or the merchant. One can use these cards for making a variety of transactions. These cards come with an enhanced in-built memory space capable of storing virtually every detail of the customer. Smart cards are capable of accommodating several applications in one single card.