Smart Card Lucky

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Department of Electronics & Communication Engineering





CONTENT page No.
1. Acknowledgment 2. Introduction 3. What is a smart card? 4. Microprocessor smart card? 5. How smart card work. 6. History of smart cards. 7. Types of smart cards. 8. Construction of Smart Cards 9. Why Consider Smart Cards?
10. 11. 12.

Advantages of Smart Cards Applications Areas Conclusion References




I would like to thank everyone who helped to see this seminar to completion. In particular, I would like to thank my seminar coordinator Mr. P.K.SINGH for his moral support and guidance to complete my seminar on time. I would like to take this opportunity to thank Prof. P.K.SINGH, Head of the Department, Electronics& Communication Engineering for her support and encouragement. I express my gratitude to all my friends and classmates for their support and help in this seminar. Last, but not the least I wish to express my gratitude to God almighty for his abundant blessings without which this seminar would not have been successful.




Imagine the power of a computer, the speed and security of electronic data, and the freedom to carry that information anywhere on earth. Imagine a computer so small it fits inside a plastic card like the credit card you carry in your wallet. Imagine the Smart Card. Today's society is often characterized as an information society. Technological developments, particularly in the areas of computers and telecommunications have fundamentally changed the character of the modern organization. The smart card is one of the latest additionsto the world of information technology.



What is a Smart Card?
What is a smart card? The term Smart Card is loosely used to describe any card with a capability to relate information to a particular application such as magnetic stripe, optical, memory, and microprocessor cards. It is more precise, however to refer to memory and microprocessor cards as smart cards. • A magnetic stripe card has a strip of magnetic tape material attached to its surface. This is the standard technology used for bank cards. • Optical cards are bank card-size, plastic cards that use some form of laser to write and read the card. • Memory cards can store a variety of data, including financial, personal, and specialized information; but cannot process information. • Smart cards with a microprocessor look like standard plastic cards, but are equipped with an embedded Integrated Circuit (IC) chip. Microprocessor cards can store information, carry out local processing on the data stored, and perform complex

calculations. These

cards take the form of either “contact” cards which require a card reader or “contactless” cards which use radio frequency signals to operate.



Microprocessor Smart Card
For the purpose of this tutorial, we are focusing our discussion on the microprocessor type of Smart Card defined as an IC chip contact card with a microprocessor and memory. No bigger than a credit card, this smart card contains a dime-sized microchip that can process and store thousands of bits of electronic data. Unlike passive devices (such as a memory card or magnetic stripe card) that can only store information, the smart card is active and able to process data in reacting to a given situation. This capability to record and modify information in its own non-volatile, physically protected memory makes the smart card a powerful and practical tool. Smart cards are small and portable; they can interact with computers and other automated systems; and the data they carry can be updated instantaneously.



How Smart Cards Work
A smart card contains more information than a magnetic stripe card and it can be programmed for different applications. Some cards can contain programming and data to support multiple applications and some can be updated to add new applications after they are issued. Smart cards can be designed to be inserted into a slot and read by a special reader or to be read at a distance, such as at a toll booth. Cards can be disposable (as at a tradeshow) or reloadable (for most applications). An industry standard interface between programming and PC hardware in a smart card has been defined by the PC/SC Working Group, representing Microsoft, IBM, Bull, Schlumberger, and other interested companies. Another standard is called OpenCard. There are two leading smart card operating systems: JavaCard and MULTOS. To access the information stored in the smart card we require a Smart Card Reader. Smart card readers are the necessary interface between smart cards and information systems. They can be connected to PCs via serial or USB ports, integrated into computer keyboards, and now they can be integrated into la ptops. Portable readers can be used when a patient's smart card needs to be accessed outside of the health care facility.



History of Smart Card
The birth of Smart Card is from France. While investors in the USA, Japan AND Austria were issued patents that pre-date those of French man Rolland Moreno; it was the French, who put up big money to boost the technology. Mr. Ronald Moreno, father of the Microchip found the first patent on 25th March 1974 for the Smart Card. The First Cards were issued, a few years later but the initial reception was unenthusiastic. The miniaturization of electronic components in 1978 made it possible to mass-produce smart cards for general release.

The first company to make major R & D Investment in the technology was Bull, which holds about patents related to M.P. Cards. originally known as “CARTE A MEMOIRE” or Memory Card. 1980, France began a major campaign to export the technology; the Roy Bright of the Government’s marketing organization InteliMatique coined the word“Smart Card”.



1987, first large scale smart card application implemented in the United States with the U.S. Department of Agricultures nationwide Peanut Marketing Card. 1992, a nationwide pre-paid (electronic purse) card project (DANMONT) was started in Denmark. 1994, Europay, Master Card and Visa (EMV) published joint specification for global microchip – based bank cards (Smart Cards). Then, Germany begun issuance of 80 million serial memory chip card as Citizen Health Cards. Between 1995 and 1996, 40,000 multi functional, multi-technology MARC Cards with chips were issued to US Marines in Hawaii. 1996, more than 1.5 million VISA Cash stored value cards were issued at the Atlanta of Olympics. Microsoft has announced its new Windows Smart Card Operating System. France began piloting a Smart Health Card for its 50 million citizens. The U.S. Government (General Services Administration) began a two multi application Java Card Pilot in the Washington DC Metropolitan area.

In India, projects SMARS began in 1996 The primary aim of the project was to establish interoperability among different technologies


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and standards of cards, card readers and the clearing and settlement system. Amongst the other important aims were, the making of technical standards for cards, card readers and the clearing and settlement system, operational standards for operating smart cards and preparation of a business model for smart card deployment. It all started as a pilot project in December 1998, at IIT, Mumbai campus. The main aim of the project was to practically establish an interoperable system using different products of different technology vendors. Two branches one of Canara Bank and the other of State Bank of India in IIT, Mumbai, issued cards to all their savings bank account holders.

Types of Cards
Before implementing the Smart Card, it is necessary to understand the significance and potentiality of Smart Cards and also necessary to put the technology into contest. There are different technologies available for the purpose. In fact, there are five types of Smart Cards. 1. Memory Cards


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Introduction to Smart Card Bimaquest - Vol. IV Issue I1, July 2004 q 49 2. Processor Cards 3. Electronic Purse Cards 4. Security Cards 5. Java Cards There are different types of plastic cards that fall under the umbrella of “Advanced Card Technologies”. Embossed plastic card The embossed plastic card can be understood from a visual inspection. The issuer is identified through the print and card colour. The embossed lettering usually shows the name of the holder along with other significant data such as identification or account number. Transfer of information via embossing may seem primitive but the simplicity of the system has made worldwide proliferation possible. There is a signature style on the back of this plastic card which shows a typical signature of the cardholder to allow the personal identification. Magnetic Strip Card


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The main advantage of magnetic technology over embossing is reduction of paper documents. The magnetic Stripe Card can store up to 245 characters of information. The magnetic strip is divided into three parts according to international standard (parts 2, 4 and 5 of ISO7811) each of which has been designed for different applications. One of the tracks is designated a read and write track, with updated appropriate terminal equipment. The magnetic strip card has proven to be exceedingly successful over the years. Memory Card The memory Card is more advanced which has a microchip or integrated circuit with fixed memory functions, but no processing power. Memory Cards are less expensive and much less functional than Micro Processor Card. They contain EEPROM and ROM, as well as some address and security logic. Typical Memory Card Applications are pre-paid telephone cards and health insurance cards. Smart Cards Integrated Circuit Cards are known as Smart Cards. These cards follow the ISO 7816 Series Standard. The most important of this Stored Card is


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protecting against Introduction to Smart Card 50 q Bimaquest - Vol. IV Issue I1, July 2004 unauthorized access and tampering. Memory functions such as reading, writing and deleting can be linked to specific conditions, controlled by both hardware and software. Smart Card may be equipped with three types of memory depending upon the usage.

Read Only Memory (ROM) – Non volatile memory containing information loaded at the manufacturing stage, which can not be altered. Random Access Memory (RAM) – Volatile memory, which retains its contents only while power, is applied. Programmable Read Only Memory (PROM) non-volatile memory, the contents of which can be programmed depending upon the usage.

Memory Cards Memory card contain EEPROM and ROM memory, as well as some address and security logic, exists to prevent writing and erasing of the data. Complex designs allow for memory read access to


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be restricted. Example: pre-paid telephone cards and health insurance cards. Stored-value phone cards and a close-up of a memory chip from one Microprocessor Card Microprocessor Card is the most secure type card. It has a built-in Operating System in its microprocessor. The Central Processing Unit (CPU) uses RAM as its working memory and the data is stored in EEPROM, which size in modern cards varies from 1 KB to 1 MB and constitutes a dominating factor specifying the card capabilities. It has the capability to perform independent calculations and therefore it can store several applications. The card can be used in various areas, e.g. banking payment systems, Motor Insurance, Health Insurance, transportation systems, etc. Cryptographic Coprocessor Card Technically, these cards are in the category of microprocessor card. They are different from other type card because of the functionality. A cryptographic coprocessor is a hardware module, which includes a processor and the same is used for encryption and Introduction to Smart Card


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Bimaquest - Vol. IV Issue I1, July 2004 q 51 related processing. These cards are programmed with various security features to prevent unauthorized retrieval of data. Contact Smart Card Contact smart card is embedded with a single integrated circuit chip that contains just memory or memory plus a microprocessor. The microprocessor is less expensive and they offer less security. The microprocessor contain an "intelligent" controller used to securely add, delete, change, and update information contained in memory. This type of card is used in a wide variety of applications including network security, vending, meal plans, loyalty, electronic cash, government IDs, campus IDs, e-commerce, health cards, and many more.

Contactless Smart Card Unlike Contact Smart Card, contactless smart cards contain an embedded antenna attached to the chip for reading and writing information contained in the chip's memory. They need only be


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passed within range of a radio frequency acceptor to read and store information in the chip. The range of operation varies from 2.5" to 3.9" (63.5mm to 99.06mm) depending on the acceptor. This type of card is in a wide variety of application like Student identification, electronic passport, vending, parking, tolls, etc.



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Why Consider Smart Cards?
A rule of thumb useful to organizations considering the incorporation of smart card technology into their operations states the following: IF • A portable record of one or more applications is necessary or desirable. • The records are likely to require updating over time. • The records will interface with more than one automated system. • Security and confidentiality of the records are important. THEN The smart card is a feasible automation solution for making data processing and data transfer more efficient and secure. Scene 3.4: Advantages of Smart Cards The key advantages of smart card technology include: • The capacity provided by the on-board microprocessor and data capacity for highly secure, off-line processing.


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• Adherence to international standards, ensuring multiple vendor sources and competitive prices. • Established track record in real world applications. • Durability and long expected life span (guaranteed by vendor for up to 10,000 read/writes before failure). • Chip Operating Systems that support multiple applications and secure independent data storage on one single card. Scene 3.5: Barriers to Acceptance of Smart Cards The current obstacles to acceptance of smart card technology include: • Relatively higher cost of smart cards as compared to magnetic stripe cards. (The difference in initial costs between the two technologies, however, decreases significantly when the differences in expected life span and capabilities--particularly in terms of supporting multiple applications and thus affording cost sharing among application providers--are taken into account.) • Present lack of infrastructure to support the smart card, particularly in the United States,


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necessitating retrofitting of equipment such as vending machines, ATMs, and telephones. • Proprietary nature of the Chip Operating System. The consumer must be technically knowledgeable to select the most appropriate card for the target application. • Lack of standards to ensure interoperability among varying smart card programs. • Unresolved legal and policy issues, such as those related to privacy and confidentiality, or to consumer protection laws.

Applications Areas
Shown below are examples of smart card applications. Click each application for an explanation. Financial Applications • Electronic Purse to replace coins for small purchases in vending machines and over-thecounter transactions. • Credit and/or Debit Accounts, replicating what is currently on the magnetic stripe bank card, but in a more secure environment. • Securing payment across the Internet as part of Electronic Commerce.


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Communications Applications • The secure initiation of calls and identification of caller (for billing purposes) on any Global System for Mobile Communications (GSM) phone. • Subscriber activation of programming on Pay-TV. Government Programs • Electronic Benefits Transfer using smart cards to carry Food Stamp and WIC food benefits in lieu of paper coupons and vouchers. • Agricultural producer smart marketing card to track quotas.

Information Security • Employee access card with secured passwords and the potential to employ biometrics to protect access to computer systems. Physical Access • Employee access card with secured ID and the potential to employ biometrics to protect physical access to facilities. Transportation • Drivers Licenses. • Mass Transit Fare Collection Systems. • Electronic Toll Collection Systems.


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Retail and Loyalty • Consumer reward/redemption tracking on a smart loyalty card, that is marketed to specific consumer profiles and linked to one or more specific retailers serving that profile set.


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Health Card • Consumer health card containing insurance eligibility and emergency medical data. University Identification • All-purpose student ID card, containing a variety of applications such as electronic purse (for vending and laundry machines), library card, and meal card. Scene 3.8: Applications in the U.S. Because of the significant investment in an extensive magnetic stripe-based infrastructure, and the availability of reliable and low cost on-line telecommunication services, the U.S. has thus far represented a limited smart card market. Smart card projects implemented in the U.S. have been primarily closed systems deployed on military bases, universities, and corporate campuses. The exception to this has been the movement by the Federal Government to use smart cards in Electronic Benefits Transfers for food stamps and other similar social programs nationwide. The Federal Government’s ultimate goal is to adopt a limited number of multi-application smart cards that will support a wide range of Government-wide and agency-specific services. It is envisioned that eventually every Federal employee will carry smart cards that can be used for multiple purposes such as identification, building access, network access,


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property accountability, travel, and other administrative and financial functions. The U.S. Smart Card market comprises six major industries. Financial services lead it off with 32% of the market. Followed by retail with 27%, government with 22%, education with 18%, and a tie for last between transportation and phone; both at 1%. This completes Smart Card Technology, an on-line multimedia presentation, presented by the General Services Administration. We hope you have enjoyed this presentation and you will take time to explore the SmartGov Web site where you will find the latest in smart card news and information.


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So many business applications can be thought of. The following is my thought of implementing Smart card in the insurance sector in India. Let us examine how to pay the premium for Mediclaim policies. Insurance companies are already having their own mediclaim policies. I need not describe the full details of the mediclaim policies. While issuing the mediclaim policies, the concerned insurance companies may, along with the policy issue a Smart Card whic h holds the details of the policyholder. In the present scenario we may think of introducing this type of Smart Card for the specific diseases like Cancer, Cardiac, etc. If any point of time, the policyholder gets hospitalized, the case history can be stored into the card. There is no need of carrying all the details of case history to the Insurance companies for claim processing. In this case the hospital has to have the smart card application facilities. Till the law comes into force, the hospital authority, the insurance company and the policyholder can get into agreement for the authenticity of the information recorded in the smart card. Of course, security feature has to be enabled. Since the smart card is storing the policy details as well as case history of the policyholder, it will take less time for the insurance company


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to process the claim. In this scenario Banks play a major role whenever any payment /receipt is involved i.e., Medical Bill Payment, Premium Payment as well as Receipt of Claim. Similar type of application can be thought of Life Insurance Policy as by nature these policies are long-term policies. With this technology the policy document can be kept in safe and more secure manner.

• “Smart Card Hand Book”, Second Edition, W. Rankl& W. Effing, John Wiley & Sons, Ltd. • Economics of financial applications of the smart card: a summary overview by Charles Goldfinger, Chairman, Financial Issues Working Group • Smart Cards and Clinical Care Delivery (7/1/2003) HCT Project Volume 1 By Dr. Bruno Lassus, D.D.S., Gemplus. • Smart Cards and their Operating Systems by HengGuo HUT, Telecommunications Software and Multimedia Laboratory. • Anderson R. & Kuhn M. (1996).Tamper Resistance - A Cautionary Note, Computer Laboratory, Cambridge University, and Department of Computer Sciences, Purdue University. • Schumberger Limited (1996). Advantages, Smart Cards: Inherent advantages, Internet WWW page at URL:> (24 Mar. 1997).


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Website References:
• es • y/ • • mrtcdcb • • • • smart_cards/ • • • • product • • • • • • • • • • • • • • • • •


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