Smart card data chips are microprocessor or memory chips embedded in credit card or token-sized devices. Originally designed for services such as banking and health care, they are rapidly being adopted by businesses that require data to be both portable and secure.
Smart cards chip manufacturers make chips that are memory only, but the most secure devices combine memory and processor chips. Smart card chips offer a number of advantages over traditional password protection and document-based identification:
1. Chips for smart cards make the devices portable, often resembling credit cards or small token drives (often called thumb or jump drives).
2. Smart card data chips include internal security systems, which can include a secure file system or cryptoprocessor.
3. Chips for smart cards work with a digital administration system that reads, exchanges and verifies information without tying up personnel.
Use smart card data chips to secure online financial transactionsSmart cards secure financial transactions including pre-authorized payments and high security transfers. They can also serve as electronic wallets that can be pre-loaded with funds for expected business expenses and protect money exchanges. They are often considered the most secure method for online banking transactions.
Rely on smart card chips to verify employee identitiesDigital identity can be equally important and smart card chips can also be incorporated into token devices (similar to USB drives). Smart cards add a level of security beyond traditional password login. They can also store encrypted digital certificates using Public Key Infrastructure (PKI) as well as other confidential company information about the user.
Incorporate devices that read smart card chips into your businessYour business will need to be able to read and process the smart cards, which means you will need reading devices and software to administrate the systems. Most smart card chips vendors also supply the readers you'll need to work with your card system, including card-based and usb-based devices.
- In spite of their security, even smart cards aren't 100 percent secure. Viruses can be written to interfere with Internet transactions. In addition, smart cards still suffer from a lack of standardization, especially in the retail environment (although this issue is being addressed).