A smart card is any pocket-sized plastic card that contains an integrated circuit. Banks and other financial institutions issue their clients with credit and debit cards, which are a form of smart cards, in order to transact offline and online payments from their bank account.
Advantages of smart cards
Smart cards have become widely popular in a number of industries, most notably the banking and mobile networking sector where they are being used for SIM cards as well as credit and debit cards. The Chip and PIN technology of smart cards enhances the security feature of bank cards as it provides only account holders to authorize payment transactions from their bank account.
There are a number of reasons why smart cards are used amongst so many industries; some of these are detailed below;
- Mobility: instead of carrying large sums of cash, credit and debit cards allow individuals to access all the funds from the bank accounts when making payments. They are not required to have any amount of cash on them as shops all across the globe now have POS terminals with card readers.
- Accessibility: with the installment of Automated Transaction Machines (ATM) across the globe, individuals are able to access their account at any given time. They are also able to withdraw cash and check their account balance from an ATM machine.
- Automatically Updated: in the event that there are some changes in your personal information or you choose to change your PIN code, the smart card is automatically updated from the bank’s system.
Smart cards pose many benefits for their card holders. They allow bank account holders to conduct payment transactions from across the globe as well as access their balance from ATMs. Their convenience and efficiency make them a technological development that has spread across many industries.