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.

Action Steps
The best contacts and resources to help you get it done

Use smart card data chips to secure online financial transactions

Smart 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.

I recommend: Smart card chip suppliers include Almex offers a number of smart card options online from smart cards programmable in BASIC to high end dual interface cards that can be read by contact devices or contactless RFID scanners. Avante offers a smart card and key fob combination that come blank or custom-printed in four colors to display your company brand.

Rely on smart card chips to verify employee identities

Digital 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.

I recommend: Buy smartcard chips on line from retail vendors such as USASmartCard, who offers a number of USB PKI smart tokens from more than half-a-dozen international manufaturers. Other smart card chip suppliers include Raak Technologies, whose Omnikey line may provide the most options with smartcard chip dual hybrid technology. The CardMan 6121 with C2-10 Smart Card increases token flexibility, and its Cryptoken CT-40 also carries a reader chip which allows it to run on Windows machines without driver installation.

Incorporate devices that read smart card chips into your business

Your 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.

I recommend: Raak Technologies offers a wide line of readers, including dual interface readers that will process cards with contacts or without. You can purchase your own software development kit to administer your readers, but IdentiPhi offers both workstation edition and enterprise edition reader and software combinations.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  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).