1. A smart card is a credit card sized plastic card embedded with an integrated circuit chip that makes it "smart". This made between a convenient plastic card and a microprocessor allows an large amount of information to be stored, accessed and processed either online or offline. Smart cards can store several hundred times more data than a conventional card with a magnetic stripe. The information or application stored in the IC chip is transferred through an electronic module that interconnects with a terminal or a card reader.

2.  EMBOSSED-CARDS embossing allows for textual information or designs on the card to be transferred to paper by using a simple and inexpensive device.  MAGNETIC-STRIP-CARDS the primary advantage that magnetic stripe technology offers over embossing is a reduction in the flood of paper documents. The stripe’s storage capacity is about 1000 bits and anyone with the appropriate read/write device can view or alter the data.

3.  SMART CARDS (CHIP CARDS) The Integrated Circuit Cards have conventionally come to be known as "Smartcards". These types of cards allow far greater orders of magnitude in terms of data storage – cards with over 20 Kbytes of memory are currently available. Also, the stored data can be protected against unauthorized access. Memory functions such as reading, writing, and erasing can be linked to specific conditions, controlled by both hardware and software.

4.  CONTACT CARDS (1)Memory-Cards: though referred to as smartcards, memory cards are typically much less expensive and much less functional than microprocessor cards. They contain EEPROM and ROM memory, as well as some address and security logic. (2)Microprocessor-Cards: Components of this type of architecture include a CPU, RAM, ROM, and EEPROM. The operating system is typically stored in ROM, the CPU uses RAM as its working memory, and most of the data is stored in EEPROM.

5. (3) Cryptographic Coprocessor Cards: these card are category of microprocessor card. They are different from other type card because of the functionality. Cryptographic coprocessor is a hardware module, which include a processor and the some is used for encryption and related processing. CONTACTLESS 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 passed within range of a radio frequency acceptor to read and store information in the chip.

6. Optical Memory Cards These cards can carry many megabytes of data, but the cards can only be written once and never erased with today’s technology. Hybrid Card (Combi card) Hybrid card is combination of contact card and contactless card. The contactless chip is used for fast transaction times and/or mass transit application. The contact chip can be used for higher levels of security applications.

7. As discussed previously that smart card has its smartness because of chip embedded on the card. As shown in figure the MICROCONTROLLER CHIP is combined with printed circuit. This combination is then glued to the plastic support card. Thus smart is made.

8. PHYSICAL CHARACTERISTICS:  A smart card must have physical dimensions of 85.6 mm x 54 mm, with a corner radius of 3.18 mm and a thickness of 0.76mm. (according to ISO 7810 )  Consequently, smart card chip placement is defined in ISO 7816-2, which was released in 1988. These physical characteristics are depicted in Figure

9.  Mask ROM Specification: The mask ROM contains the operating system of the smart card. It is largely concerned with the management of data files but it may optionally involve additional features such as cryptographic algorithms  Application Software Specification: This part of the card development process is clearly specific to the particular application.  Application load: Assuming the application is to be placed in the PROM memory of the IC then the next stage in the process is to load the code into the memory. These commands allow the reading and writing of the PROM memory.  Card Personalization: The card is personalized to the particular user by loading data into files in the PROM memory in the same way that the application code is loaded into memory.  Application Activation: The final operation in the manufacturing process is to enable the application for operation.

10. APPLICATIONS  Financial services - Financial institutions are looking to use Smart Cards to deliver higher value-added services to businesses and consumers at a lower cost per transaction.  Affinity programs - Airlines, retailers, and other companies that offer a range of ancillary services and loyalty programs along with their basic product want to use Smart Cards to deliver these programs with a higher level of service, improved ease of use, and at a lower cost.  Cellular phones - Smart Cards offer a mechanism to secure cellular phones against fraudulent use, only Java Cards offer the ability to download new functions into a phone in real time.  Other Applications of Smart Cards technology include : Government, Healthcare, Information Technology, Mobile Communication, Banking, Loyalty Programs, Mass Transit, Driving Licensing, Electronic Toll Collection, Telephone Cards, etc.  Secure network access - Smart Cards can carry an individual's digital signature. With this ability, they provide a special mechanism to secure access to computer networks within a corporation

11. ADVANTAGES  Security: Smart cards incorporate encryption and authentication technologies that can implement issuer's and user requirement for the highest degree of security.  Convenience: Smart cards will combine paper, plastic and magnetic cards used for identification, automatic teller machines, copiers, toll collection, pay phones, health care and welfare administration.  Economic Benefits: Smart cards reduce transaction costs by eliminating paper and paper handling costs in hospitals and government benefit payment programs.  Customization A smart card contains all the data needed to personalize networking, Web connection, payments and other applications.  Multifunctional: The processing power of a smart card makes it ideal to mix multiple functions. For example, a college identification card can be used to pay for food, phone calls and photocopies, to access campus networks and to register classes.

12. CONCLUSION Finally, it is concluded that the smart card is an intrinsically secure device. Smart cards have proven to be useful for transaction, authorization, and identification media. Eventually replacing all of the things we carry around in our wallets, including credit cards, licenses, cash, and even family photographs, account numbers, and valuable personal data such as biometrics information. The smart card can be an element of solution to a security problem in the modern world.