What Is a Chip Card?
A chip card, according to Forbes' Investopedia, is a "plastic card that has a computer chip implanted into it that enables the card to preform certain functions." They are used for security access, financial transactions and information storage.
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Types of Chip Cards
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There are three kinds of chip cards: Memory cards, smart cards and super-smart cards. Memory cards have storage capability but cannot do financial processing or security access. Smart cards are great processors and have non-volatile memory capabilities. Super-smart cards are smart cards with displays and key-pads.
Popular Uses of Chip Cards
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Chip cards are used in a variety of useful ways, such as in driver licenses, bank cards and government Electronic Benefit Transfer cards. Chip cards are also used in cell phones and in satellite TV decoders.
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Disadvantages to Chip Cards
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The main disadvantage to chip cards is the cost of the technology. New devices must be installed in existing terminals to read the chips in the cards. There is also a need for an external drive with input-output abilities.
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References
- Photo Credit bank card 8 image by chrisharvey from Fotolia.com
