Smart card system

A smart card system uses a small, secure card embedded with a microchip that stores and processes data. This chip can securely hold information like personal details, payment credentials, or access rights. When the card is inserted or tapped on a compatible reader, the system communicates with the chip to verify identity or authorize transactions quickly and safely. Smart cards improve security compared to traditional magnetic stripe cards, as the chip can perform encryption and authenticate data, making unauthorized access or fraud more difficult. They are commonly used for banking, identification, transportation passes, and secure access in various applications.