SMART CARDS

SMART CARD
Smart card is also called a chip card. A smart card is plastic card with an embedded microchip that may be used to store to information about the cardholder or record card transaction as they occur. Plastic credit sized card that contain one or more semiconductor chips. This is credit card or sim card sized plastic card with an embedded microcircuit that contain either a memory card protected memory card or microprocessor card. By Charles Cagliostro defined at its highest level, a smart card is a credit-card sized plastic card with an embedded computer chip. The chip can either be a microprocessor with internal memory or a memory chip with non-programmable logic. The chip connection is either via direct physical contact or remotely via a contact less electromagnetic interface.

History
The technology has its historical origin in the seventies when inventors in Germany, Japan, and France filed the original patents. Due to several factors, not least of which was the immaturity of the semiconductor technology, most work on smart cards was at the research and development level until the mid eighties. Major rollouts such as the French National Visa Debit Card and France Telecom provided the industry with high volume opportunities. Since then, the industry has been growing at tremendous rate is shipping more than one billion (1,000,000,000) cards per year (since 1998).For an interesting historical perspective of the seventies and eighties, check out the card museum.

Technology
There are two general categories of smart cards: contact and contact less smart cards. A contact smart card requires insertion into a smart card reader with a direct connection to a conductive micro module on the surface of the card (typically gold plated). It is via these physical contact points, that transmission of commands, data, and card status takes place.

TYPES OF SMART CARDS

Contact smart card Contact less smart card Cash card Debit card Credit card Access control card

Contact card

Contact card is a smart card that requires physical contact with a card reading device to exchange data. Any card where information is transferred to a reader via a series of contact points located on the card.

Contact less card

A contact less card requires only close proximity to a reader. Both the reader and the card have antenna and it is via this contact less link that the two communicate. Most contact less cards also derives the internal chip power source from this electromagnetic signal. The range is typically two to three inches for non-battery powered cards, and this is ideal for applications such as mass transit which require very fast card interface.

Two additional categories, derived from the contact and contact less cards are Combi cards and Hybrid cardsA Hybrid card has two chips, each with its respective contact and contact less interface. The two chips are not connected, but for many applications, this Hybrid serves the needs of consumers and card issuers. Just emerging is the Combi card which in a single chip card with a contact and contact less interface. With Combi cards, it is now possible to access the same chip via a contact or contact less interface, with a very high level of security. The mass transportation and banking industries are expected to be the first to take advantage of this technology. The chips used in all of these cards fall into two categories as well: microprocessor chips and memory chips. A memory chip can be viewed as small floppy disks with optional security. Memory cards can hold from 103 bits to 16,000 bits of data. They are less expensive than micprocessor cards but with a corresponding decrease in data management security. They depend on the security of the card reader for their processing and are ideal when security requirements permit use of cards with low to medium security. A microprocessor chip can add, delete and otherwise manipulate information in its memory. It can be viewed as a miniature computer with an input/output port, operating system and hard disk. Microprocessor chips are available 8, 16, and 32 bit architectures. Their data storage capacity ranges from 300 bytes to 32,000 bytes with larger sizes expected with semiconductor technology advances. Their ability to download not just data but applications is being advanced by Sun with Java Card technology and Mondex with Multos.

Applications
The list of potential applications for smart card technology would be too long for this primer. Instead, listed below are some of the major applications seen around the world. There are over 300,000,000 GSM mobile telephones with smart cards which contain the mobile phone security and subscription information. The handset is personalized to the individual by inserting the card which contains its phone number on the network, billing information, and frequently call numbers. Almost every small dish TV satellite receiver uses a smart card as its removable security element and

subscription information. There are over 4 million in the US alone between DirectTV, USSB and Echo Star. There are millions more in Europe and Asia. The Financial industry has been quick to adopt smart card technology in various countries around the world. Every French Visa Debit card (over 25,000,000) has a chip in it. In Germany, about 40,000,000 banking cards have been issued. EuroPay, MasterCard, and Visa all have smart card programs for their bank members. In the Portugal and Singapore, the national banking networks have launched electronic purse projects. Proton has worked with its banking partners to issue over 25,000,000 electronic purse cards in several countries. Various countries with national health care programs have deployed smart card systems. The largest is the German solution which deployed over 80,000,000 cards to every person in Germany and Austria. There are over 100 countries world wide who have reduced or eliminated coins from the pay phone system by issuing smart cards. Germany, France, UK, Brazil, Mexico, and China have major programs. Other applications for smart cards include computer/internet user authentication and non-repudiation, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, pass ports, and the list goes on.

Cash card
This lets you get cash from cash machines by using a PIN (personal identity number). Your PIN should be kept secret; if you lose it or it is stolen, inform your bank immediately. If someone else withdraws cash with your card and PIN before you report it, you may have to pay for any amount that they took out. Keeping your card separate from your PIN reduces the risk of someone else being able to use it. Many cash cards will work in lots of different machines, so you don't have to use the machines for your bank. Your bank will be able tell you which cash machines you can use.

Debit Card
This card allows you to buy things without writing a cheque or carrying cash. You can also use it to buy things over the telephone or on the internet. It's just like using an "electronic cheque". When you use it, the amount of your purchase is "debited to" (taken from) your account, usually two or three days later. Your bank statement will often show which supplier you bought the goods from. Debit cards, also known as check cards look like credit cards or ATM cards (automated teller machine card). It operates like cash or a personal check. Debit cards are different from credit cards. Credit card is a way to "pay later," whereas debit card is a way to "pay now." When we use a debit card, our money is quickly deducted from the bank account. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. Its an alternative to carrying a checkbook or cash. With debit card, we use our own money and not the issuer's money.

In India almost all the banks issue debit card to its account holders.

Features of Debit Card

Obtaining a debit card is often easier than obtaining a credit card. Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction. Using a debit card frees you from carrying cash or a checkbook. Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel. Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted. The debit card is a quick, "pay now" product, giving you no grace period. Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant. Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check.

Tips for responsible use of Debit Card

If your card is lost or stolen, report the loss immediately to your financial institution. If you suspect your card is being fraudulently used, report it immediately to your financial institution. Hold on to your receipts from your debit card transactions. A thief may get your name and debit card number from a receipt and order goods by mail or over the telephone. Your card does not have to be missing in order for it to be misused. If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, don't choose a PIN number that a smart thief could figure out, such as your phone number or birthday. Never give your PIN number to anyone. Keep your PIN private. Always know how much money you have available in your account. Don't forget that your debit card may allow you to access money that you have set aside to cover a check which has not cleared your bank yet. Keep your receipts in one place -- for easy retrieval and better oversight of your bank account.

Credit card
Like a debit card, a credit card allows you to buy goods and services from a huge range of shops and other suppliers, including over the telephone or on the internet. The difference between a credit card and a debit card is that a credit card lets you pay for things now, but you don't get the bill until later. The firm issuing you with the credit card is lending you money to buy things. They may charge a yearly fee for the card. When you open your credit card account, you will be told of your limit (how much you can borrow). If you go over this limit, your card may be taken away from you. Each month your credit card company will send you a statement, showing what you have spent using the card. It will also tell you how much you owe them and by what date you need to make a payment. You have the choice of paying the bill in full, or paying part only. If you pay off only part of the outstanding balance, interest is usually charged on the whole balance, before deducting the payment. Not paying off the full amount of your credit card is a very expensive way of borrowing. If you can, you should try to pay the whole of the bill each month - or at least as much as you can afford. Credit cards are now issued with PIN numbers. Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.

Major Banks issuing Credit Card in India

State Bank of India credit card (SBI credit card) Bank of Baroda credit card or Bob credit card ICICI credit card HDFC credit card IDBI credit card ABN AMRO credit card Standard Chartered credit card HSBC credit card Citibank Credit Card

Precautions
To Avoid:

taken

after

receiving

credit

card

Bending the Card. Exposure to electronic devices and gadgets. Direct exposure to sunlight. Be cautious about disclosing your account number over the phone unless you know you're dealing with a reputable company. Never put your account number on the outside of an envelope or on a postcard. Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed. Don't sign a blank charge or debit slip. Tear up carbons and save your receipts to check against your monthly statements. Cut up old cards - cutting through the account number - before disposing of them. Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. Under the FCBA (credit cards) and the EFTA (ATM or debit cards), the card issuer must investigate errors reported to them within 60 days of the date your statement was mailed to you. Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly. Carry only those cards that you anticipate you'll need.

To Do:

Please sign on the signature panel on the reverse of the Card immediately with a non-erasable ball-point pen (preferably in black ink). This will ensure that the benefits of membership are yours and yours alone. Keep the Card in a prominent place in your wallet. You will notice if it is missing.

Reasons credit card being rejected at retail outlet:

One may have exceeded the borrowing limit or defaulted (constantly) on minimum payment suitable. The Card is hot listed.

The card has crossed its expiration date. Non-receipt of dues of one-card blocks future transactions on any other card(s) held of the same card-issuing bank. The magnetic stripe on the reverse of the card is damaged i.e. has been scratched or exposed to continuous heat/direct sunlight or magnetic field-like card kept near a TV set / other electronic appliances.

Systems or technology failures have in rare instances also led to non acceptance of cards when swiped through an Electronic Terminal

Global player in credit card market MasterCard

MasterCard is a product of MasterCard International and along with VISA are distributed by financial institutions around the world. Cardholders borrow money against a line of credit and pay it back with interest if the balance is carried over from month to month. Its products are issued by 23,000 financial institutions in 220 countries and territories. In 1998, it had almost 700 million cards in circulation, whose users spent $650 billion in more than 16.2 million locations.

VISA Card
VISA cards is a product of VISA USA and along with MasterCard is distributed by financial institutions around the world. A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations accept VISA cards.

JCB Cards
The JCB Card has a merchant network of 10.93 million in approximately 189 countries. It is supported by over 320 financial institutions worldwide and serves more than 48 million cardholders in eighteen countries world wide. The JCB philosophy of "identify the customer's needs and please the customer with Service from the Heart" is paying rich dividends as their customers spend US$43 billion annually on their JCB cards.

Grace / Interest Free Period

The number of days you have on a card before a card issuer starts charging you interest is called grace period. Usually this period is the number of days between the statement date and the due date of payment. Grace periods on credit cards are usually 2-3 weeks. However, there is likely to be no grace for balances carried forward from previous month and fresh purchases thereafter if any.

The following are some of the varieties of credit cards in India

ANZ - Gold ANZ - Silver Bank Of India - India card Bol - Taj Premium Bol - Gold Bob - Exclusive Bob - Premium Canara Bank - Cancard Citibank - Gold Citibank - Silver Citibank WWF Card Citibank Visa Card for Women Citibank Cry Card Citibank Silver International Credit Card Citibank Women's International Credit Card Citibank Gold International Credit Card Citibank Electronic Credit Card Citibank Maruti International Credit Card Citibank Times Card Citibank Indian Oil International Credit Card Citibank Citi Diners Club Card HSBC - Gold HSBC - Classic ICICI Sterling Silver Credit Card ICICI Solid Gold Credit Card ICICI True Blue Credit Card SBI Card Stanchart - Gold Stanchart - Executive Stanchart - Classic Thomas Cook Standard Chartered Global Credit Card

Standard segregation of credit cards

Standard Card - It is the most basic card (sans all frills) offered by issuers. Classic Card - Brand name for the standard card issued by VISA. Gold Card/Executive Card - A credit card that offers a higher line of credit than a standard card. Income eligibility is also higher. In addition, issuers provide extra perks or incentives to cardholders. Platinum Card - A credit card with a higher limit and additional perks than a gold card. Titanium Card - A card with an even higher limit than a platinum card.

The following are some of the plus features of credit card in India

Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Some facts of credit cards

The first card was issued in India by Visa in 1981. The country's first Gold Card was also issued from Visa in 1986. The first international credit card was issued to a restricted number of customers by Andhra Bank in 1987 through the Visa program, after getting special permission from the Reserve Bank of India. The credit cards are shape and size, as specified by the ISO 7810 standard. It is generally of plastic quality. It is also sometimes known as Plastic Money.

What does Grace / Interest Free Period Mean? The number of days given to you on your card before the card issuer starts charging you interest is called grace period. Generally the grace period is the number of days between the statement date and the due date of payment. Grace periods on credit cards are usually 2-3 weeks. However, there is likely to be no grace for balances carried forward from previous month and fresh purchases thereafter if any.

Can I use my Global credit card on the net to pay some US company for web hosting charges? Or I have to obtain permission from RBI. If any permissions are needed, How to get them? The RBI's exchange control manual mentions that 'International Credit Cards' can be used for "Registration of Internet domain name, hosting charges for website/home pages overseas and access fees for Internet related services through website". Before using your Global Credit Card on the net for web hosting charges, you further clarify the aforesaid issue or seek permission from your card issuer. Even get in touch with the card issuing bank or organization directly for such clarifications.

What does Grace / Interest Free Period Mean? The number of days given to you on your card before the card issuer starts charging you interest is called grace period. Generally the grace period is the number of days between the statement date and the due date of payment. Grace periods on credit cards are usually 2-3 weeks. However, there is likely to be no grace for balances carried forward from previous month and fresh purchases thereafter if any. What is implied in Cash Advance? Cash advances on Credit Cards are convenient and the easiest facility to utilise. Manority of the banks in India charge a transaction fee as well as service fee / interest charge on cash advances. This service fee accrues from the date of the advance (as soon as you receive the cash) to the date of full payment. The charge varies from banks to banks. Cash advance facility is a part of the overall credit limit assigned to a cardholder. The limit is of cash acvance is always lesser than the borrowing limit or the credit limit. How to make payments from Dubai to the already existing Citibank cards in India. How to avail of the statements to know the current bank balance of each card. Is online facility available? According to RBI " Resident Indians may be nominated as additional/add-on card holders by nonresidents. However, the non-residents from their foreign currency funds should meet claims arising out of use of such cards by residents only. In cases where the cards have been arranged by NRIs these liabilities may be met out of NRE/FCNR accounts in India also. Under no circumstances will any remittance be allowed by residents from India to settle their claims against use of such additional/addon cards". NRIs get rupee credit cards which are valid for use in India, Nepal and Bhutan.

Can I use my Global credit card on the net to pay some US company for web hosting charges? Or I have to obtain permission from RBI. If any permissions are needed, How to get them? The RBI's exchange control manual mentions that 'International Credit Cards' can be used for "Registration of Internet domain name, hosting charges for website/home pages overseas and access fees for Internet related services through website". Before using your Global Credit Card on the net for web hosting charges, you further clarify the aforesaid issue or seek permission from your card issuer. Even get in touch with the card issuing bank or organization directly for such clarifications. How will I know if my Credit Card application has got approved?

It is suggested to give your mobile number and e-mail id at the time of application for the Credit Card. This will help the issuer to intimate you either through SMS or through e-mail with the approved status of your application. You will also receive a letter by post informing you of the Card approval. You

should be receiving your Card around the same time as the approval letter. How will I know if my Credit Card application has got declined? You will receive a letter from the Bank even if your application for Card is not approved. If in case there is further information of missing documents, you will be sent a letter asking for the same. Then you need to fulfill with the documents to the specified address. What to do if Credit Card is Lost or Stolen? Report the loss or theft of your credit cards to the card issuers to the earliest through their 24-hour helpline service. Follow up your phone calls with a letter. Include your account number, when you noticed your card was missing, and the date you first reported the loss. After doing these, check your homeowner's insurance policy to see if it covers your liability for card thefts. If yes its fine otherwise change your policy to include this protection. Before the intimation, different banks have their own limit of loss bearing by the card holder. After the intimation, it is the bank who bears the loss if any amount is spent.

Control access card

It is a plastic card used to gain control access or enter restricted areas. Usually associated with magnetic or chip card and proximity cards with or without photo. When you use Zebra card printers to create your ID cards, authorized users can access your security system right away. Andover The access control system manufacturer (actually Tour Andover Controls) chosen for all future security/access needs on the campus Biometric reader A device in higher security areas, usually incorporated with a card reader, which will accept the required fingerprint in addition to the prox card, for access to the area. Carding The process of issuing the I.D./proximity cards. Card reader A wall-mounted device, usually outside a door, which will allow access and unlock the door when a valid prox card is presented. What is Access Control? Access Control (AC) is a term used to express how a building or room is secured and entrance and exit is controlled. This can range from a simple key lock, to a high-security key (non-duplicative), to proximity card access with biometric readers (such as a fingerprint). A proximity (prox) card is an identification card with an internal antenna/chip programmed with authorized access codes. What types of access control are available?

Campus Standards for Access Control allow for six types of standard door configurations. Some modifications will be made based on customer need with UWPD input. Further information will be provided once an access control system has been requested. Why is a centralized access control system needed? In the past there were a number of disparate systems across campus providing various levels of access control. These systems were of various quality and reliability and there was no central point that monitors door activity. Access control is used to be sure that only authorized people are in buildings or restricted areas, and in some cases to provide security and police response where needed. A central system will allow the UW to be sure the right people are in the right places at the right times. Who will monitor the system? High security sites will be monitored by the UWPD Communications Center. This will allow for a rapid response of police personnel in the case of a security breach. Lesser secure areas can be monitored by either UW Security personnel or door events can simply be recorded for later review and audit by a building manager. Some buildings will be able to control their own access control systems through an Andover Web Client .

What about camera systems? Generally, higher security buildings or rooms will be monitored by cameras. These cameras are able to record when someone enters or leave a secure area, as well as monitor the perimeter of high security buildings. These cameras can be viewed by the UWPD Communications Center staff as needed. Cameras may be placed in lower security buildings to monitor who enters and exits, as well as in areas where suspicious activity can be monitored. Cameras will also record activity for 30-60 days as needed. Who funds the cost of any access control system? Most funding for access control will come from the department making the request. However, if access control is mandated by internal or external regulations (red buildings), there may be a cost sharing with the overall campus administration. Blue or green buildings requesting some sort of access control will usually be required to fund the system through their own budgets. What is a Web Client, and how does it work? The Andover system is so versatile that some access control systems in lower security buildings will be able to maintain and monitor their own system via the Web. For example, a building manager will be able to enter and delete personnel as needed on any computer (password protected), and in addition,

can change door opening schedules, monitor who is coming and going from the building, and lockdown the facility if need be. This sounds complicated. How do we make changes or add new staff? The Web Client software is very user-friendly and all designated staff will be trained on its use once it is installed in a building. Once employees are entered in the database, the building manager or designee can approve the door group to which they would have access, and when an employee leaves the job, can take them out of the system with a simple checkmark. Do the police have to respond if there is an employee error? Police will respond to any of a number of breaches or employee errors in high security buildings or areas. In buildings with less security, errors or equipment malfunctions can usually be handled by a building manager. Is there a difference between security and access control? Access control covers any kind of monitoring and recording of door activity. Security applications by themselves, only apply to a select group of campus buildings.

Can I use my UW ID for my access card? Eventually it is the intent of the campus to have a one-card system. Currently students, faculty, and staff are issued a campus ID as well as a proximity card for access to their work or living areas (UW Dorms). For now, each person in an access controlled office or dormitory will have to carry a proximity card in addition to the regular UW ID card. In the future, we hope to combine all cards into one. Can I carry two cards if I work in two places? No, each person will only be issued one proximity card. On that card will be the persons name, title, and the affiliation that requires an access card. For example, if you are a graduate student, and also work as a lab assistant, you will have to choose what appears on the face of your ID card. Cards are programmed through software to give access wherever needed, even in multiple sites, and can be changed as needed. What is the cost of a proximity card? Departments will be charged a per-card fee based on actual costs. Currently each card will be billed at $15.00. High security cards (Smartcards) will be slightly higher.

Conclusion

The ATM fraud is not the sole problem of banks alone. It is a big threat and it requires a coordinated and cooperative action on the part of the bank, customers and the law enforcement machinery. The ATM frauds not only cause financial loss to banks but they also undermine customers' confidence in the use of ATMs. This would deter a greater use of ATM for monetary transactions. It is therefore in the interest of banks to prevent ATM frauds. There is thus a need to take precautionary and insurance measures that give greater "protection" to the ATMs, particularly those located in less secure areas. The nature and extent of precautionary measures to be adopted will, however, depend upon the requirements of the respective banks.