Contactless smart card

A contactless smart card is a contactless 13.56-MHz credential whose dimensions are credit-card size. Its embedded integrated circuits can store and sometimes process data and communicate with a terminal via radio waves. There are two broad categories of contactless smart cards. Memory cards contain non-volatile memory storage components, and perhaps some specific security logic. Contactless smart cards do contain read-only RFID called CSN (Card Serial Number) or UID, and a re-writeable smart card microchip that can be transcribed via radio waves.

A contactless smart card is also characterized as follows:

Contactless smart cards can be used for identification, authentication, and data storage. They also provide a means of effecting business transactions in a flexible, secure, standard way with minimal human intervention.

Contactless smart cards were first used for electronic ticketing in 1996 in Seoul, South Korea.

Since then, smart cards with contactless interfaces have been increasingly popular for payment and ticketing applications such as mass transit. Globally, contactless fare collection is being employed for efficiencies in public transit. The various standards emerging are local in focus and are not compatible, though the MIFARE Classic card from Philips has a large market share in the United States and Europe.

In more recent times, Visa and MasterCard have agreed to standards for general "open loop" payments on their networks, with millions of cards deployed in the U.S., UK, France and around the world.

Smart cards are being introduced in personal identification and entitlement schemes at regional, national, and international levels. Citizen cards, drivers’ licenses, and patient card schemes are becoming more prevalent. In Malaysia, the compulsory national ID scheme MyKad includes 8 different applications and is rolled out for 18 million users. Contactless smart cards are being integrated into ICAO biometric passports to enhance security for international travel.

Contactless smart card readers use radio waves to communicate with, and both read and write data on a smart card. When used for electronic payment, they are commonly located near PIN pads, cash registers and other places of payment. When the readers are used for public transit they are commonly located on fare boxes, ticket machines, turnstiles, and station platforms as a standalone unit. When used for security, readers are usually located to the side of an entry door.

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Wikipedia