Legal Definitions - smart card

A smart card is a physical card, typically made of plastic and similar in size to a credit card, that contains an embedded microchip. This microchip allows the card to store, process, and encrypt data, enabling secure transactions, identification, and information storage. Unlike older cards that rely on magnetic stripes, smart cards offer enhanced security features and greater functionality due to the chip's computing capabilities.

Here are some examples to illustrate the concept of a smart card:

• Example 1: Public Transportation Pass

  Imagine a commuter using a reloadable transit card to pay for bus and subway fares. When the card is tapped against a reader at a turnstile or on a bus, the embedded chip securely deducts the fare from the card's stored value. This demonstrates a smart card's ability to hold monetary value and process transactions securely and efficiently, replacing the need for physical tickets or cash.

• Example 2: Corporate Access Badge

  An employee at a large technology company uses their identification badge to enter secure laboratories and server rooms. The badge contains a smart chip that communicates with electronic readers at each door. When the employee taps their badge, the chip transmits encrypted credentials to the reader, which then verifies their authorization level and grants or denies access. This illustrates how smart cards are used for secure access control and identification within an organization.

• Example 3: Digital Driver's License

  In some regions, driver's licenses are issued as smart cards. These cards not only display visual information like a photo and name but also contain a chip that securely stores additional data, such as driving history, endorsements, and biometric information. When a law enforcement officer scans the card, the chip provides authenticated data, enhancing security and preventing fraud. This highlights a smart card's capacity for secure data storage and verification beyond what is visually printed on the card.