Note the differences between smart cards and credit cards.
Both smart cards and credit cards allow you to make everyday transactions. Smart cards have taken credit cards to a more secure level where theft of your information is difficult to accomplish. A common sight in Europe, the smart card is catching on around the world.
Smart Cards
Commonly used in Europe, smart cards are similar in appearance to credit cards. Smart cards store data on a chip inside the card. This chip is used to store everything from your bank account numbers to health-insurance information. Compared to a diskette, smart-card technology is secure, so theft of your information from a smart card is impossible. Because of the security benefits, smart card technology is becoming more prevalent.
Credit Cards
The magnetic stripe on the back of a credit card has your financial information accessible for transactions. This stripe technology is still considered the universal standard for identification purposes. No further information is accessible on your credit card except your credit card number. Your account information can be stolen from a credit card with equipment easily available for purchase by the general public.
Differences
Smart cards are more expensive than credit cards to produce, but your personal information is safer. Smart cards hold more than just your financial information and reduce the need for you to carry multiple cards. Your information is protected internally on the chip inside the smart card. Credit cards are easy to hack and only have your financial information on them. The information is inaccessible on credit cards when the magnetic stripe is demagnetized or damaged, which happens frequently because of the exposed position of the stripe. .
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