Credit Card Guide

What is a Smart Credit Card?

13 August 2010 by CreditCardsCo™

One of the biggest problems that many people are known to face today in the current financial market is being prone to fraud. Even though many experts believe that using credit cards and debit cards instead of cash is a safer option, as times have evolved, this is no longer the case. There have been a number of reported cases where credit card fraud is at an all time high with things expecting to get worse if action is not taken. The reason why fraud is so imminent with credit and debit cards is all to do with the small chip that comes inserted in the card. The technology used to device that chip is quite back dated which has created a number of loop holes in more recent years. These chips have simply been designed so that they can be used in all areas of the world through a PIN entry system.

Seeing as traditional credit cards are now causing a great amount of concern for all credit card holders on a mass scale, there has been a demand that new security measures be put into place. This is where the concept of a smart credit card comes into play. A smart credit card is a more advanced version of standard credit cards. When you look at a smart credit card at first glance, it is quite difficult to notice anything different. The design, shape and layout of the card are exactly the same to those that are traditional. So what makes a smart credit card that extra bit smarter and different? It is all to do with the chip that is installed into the card.

The great thing about the chip that is found in the smart credit card is that it is made of new technology known as cryptography and is known to have a built in microprocessor. What that basically means is that when ever you go to use your credit card at say an ATM machine or to make a purchase, there are a number of different encryptions that you have to by pass in order to gain successful access to your account. The card basically executes a sequence of exchanges to ensure that the person using the credit card is actually who the person should be. These sequences of exchanges are known to change on a continuous basis for the next time you decide to use your card. What that ensures is that anyone who might be eavesdropping will have no chance to use your card from fraud in any form or matter.

The concept behind a smart credit card is relatively new which is why many people do not know the benefits of applying for one. There are a number of other qualities that a smart credit card is known to offer as well which are known to be quite beneficial. If you are looking for more information on this particular topic, one of the best places to look would Wikipedia. Ideally it would be a good idea to visit your local branch to see if they are offering smart credit cards or not.

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