Smart Card Ready to Shift Credit Card

Carrying large amounts of paper money is certainly not practical, as well as unsafe. Similarly, demand deposits (checks and giro), which although quite safe, not always promise practicality. You can imagine how difficult that must be to open a check every time you shop at different stores and not necessarily willing to accept your check. In 1950 plastic money was first introduced in the United States with the goal of providing a practical means of payment and security to the community.Subterfuge banking plastic money in the next stage, be used to circumvent U.S. banking Banking Act Peper-MC Fadden. Laws enacted since 1927 it has been dispelled opportunities U.S. banks to open branches in other states. Law was formed by the U.S. government worried that the financial strength to be centered on a single bank, if the certain bank  managed to build networks across the United States. But with the credit card, direct marketing support and computer network, a bank in New York to extend credit to its customers in Washington without having to have a branch there. The success of Citibank New York to build retail bank through a credit card marketing in the United States have created laws Pepper-MC Fadden tooth loss.The secret is in the chips plastic money is not always practical, because sometimes we have to wait just long enough to sign the bill that is being written cashier. In addition we are also hard to control spending, because spending when we do not know how big we are spending on the following days. Credit card system also cause traders to lose the opportunity to enjoy the cash, because there is always a lag time between the purchase of goods by the cardholder with the payment by credit card companies. This is one reason why credit cards are not widely accepted in shops. By adding one or several microchips on credit cards, these problems can be overcome. The presence of microchips made of plastic money can be programmed to record all purchases and always displays  final transactions customers' financial position. Another plus, the funds can be transferred directly from the customer's account to the merchant account in the bank so there is a transaction. But when customers use credit, then at the time the transaction occurs, the bill will soon be listed on the customer's credit account and the same amount of funds immediately recorded in the merchant account. Because of this sophistication, this card is worth in dubbed smart card.Able to think and remember smart card technology in the mid 1970s by a French company called Innovatron. But progress is less rapid. Process perfected only takes up nearly a decade. New in 1982, smart cards tested in the country of his birth and for the first time be used as a debit card. In this function smart card is like a checkbook with extra capabilities that allow cardholders can instantly transfer money from his account to a merchant account. Course for success of this transaction, the merchant must have a smart card reader and a special terminal that is connected to the computer's central bank. In principle, all smart card versatility comes from the ability of logic and memory. A bit microprocessor with a capacity of 4-8 plastic card making it capable of thinking. Important data such as account numbers, passwords and financial information of the card holder is stored in volatile memory. To save memory, most of the smart card producer complete cards with electrically programmable read only memory (EPROM) chips or electrically

Erasable Read Only Memory (EEROM) chips.EPROM chips on all transaction data is stored permanently and can only be written once. As a result, it quickly filled chips and cards can not be used anymore. While the chips EEROM useless data can be removed to be used again so that the card can be used any longer. Because of all abilities come from chips, smart cards are often dubbed electronic money.You can have it Actually, at the time still being in the lab, smart card technology has taken over the French telecommunications company to use the phone card. Phone card technology is simpler. Phone cards can not be found on microprocessors and logic chips instead is a more modest called programmable logic arrays. Smart cards in the United States have been tested since 1985 by Master Card International to study the possibility replace credit cards. At the same time his main rival, Visa International does not want to miss and announced immediately to develop a smart card. Ability not only to be able to transfer funds directly, but also can display the latest financial position, counting, storing addresses and medical data. Smart Card is a more sophisticated so-called super smart cards which have the form thicker and has a keypad and display.  Bank Seriousness it can threaten the credit card business, it turns out the banking industry is very keen to develop smart card. This is understandable, because it turns out the bank during busy with paperwork, sending checks and receipts. With smart cards such affairs can be reduced.Electronic money has a great chance of replacing credit cards, but there are still some things that need to be solved. Smart card in order to be accepted in every place, the electronic card reader and the central computer connection must be propagated. In addition to the smart card issued to manufacturers that one is always different from the other manufacturers, so it takes a different reader. That would complicate the universal acceptance of electronic money. And if the only smart card to take over the role of the checks, the customer can no longer use checks backward, because every time there is a transaction, customer funds can be directly transferred to the merchant.Source: Jacking E. Victory