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Storage Components, Cards
A smart card, chip card, or integrated circuit(s) card (ICC), is defined as any pocket-sized card with embedded integrated circuits. Although there is a diverse range of applications, there are two broad categories of ICCs. more...
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Memory cards contain only non-volatile memory storage components, and perhaps some specific security logic. Microprocessor cards contain memory and microprocessor components.
The standard perception of a "smart card" is a microprocessor card of credit card dimensions (or smaller, e.g. the GSM SIM card) with various tamper-resistant properties (e.g. a secure crypto-processor, secure file system, human-readable features) and is capable of providing security services (e.g. confidentiality of information in the memory). Not all chip cards contain a microprocessor (eg. the memory cards), therefore not all chip cards are necessarily also smart cards. However, the public usage of the terminology is often inconsistent.
History
Smart cards were invented and patented in the 1970s. There are some disputes regarding the actual "inventor"; claimants include Jürgen Dethloff of Germany, Arimura of Japan, and Roland Moreno of France. The first mass use of the cards was for payment in French pay phones, starting in 1983 (Télécarte).
Roland Moreno actually patented the concept of the memory card in 1974. In 1977, Michel Ugon from Honeywell Bull invented the first microprocessor smart card. In 1978, Bull patented the SPOM (Self Programmable One-chip Microcomputer) that defines the necessary architecture to auto-program the chip. Three years later, the very first "CP8" based on this patent was produced on by Motorola. Today, Bull has 1200 patents related to smart cards.
The second use was with the integration of a microchips into all French debit cards (Carte Bleue) completed in 1992. When paying in France with a Carte Bleue, one inserts the card into the merchant's terminal, then types the PIN, before the transaction is accepted. Only very limited transactions (such as paying small autoroute tolls) are accepted without PIN.
Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an externally recorded account, so that machines accepting the card need no network connectivity) were tried throughout Europe from the mid-1990s, most notably in Germany (Geldkarte), Austria (Quick), Belgium (Proton), the Netherlands (Chipknip and Chipper), Switzerland ("Cash"), Sweden ("Cash"), UK ("Mondex") and Denmark ("Danmønt").
The major boom in smart card use came in the 1990s, with the introduction of the smart-card-based SIM used in GSM mobile phone equipment in Europe. With the ubiquity of mobile phones in Europe, smart cards have become very common.
The international payment brands MasterCard, Visa, and Europay agreed in 1993 to work together to develop the specifications for the use of smart cards in payment cards used as either a debit or a credit card. The first version of the EMV system was released in 1994. In 1998 a stable release of the specifications was available. EMVco, the company responsible for the long-term maintenance of the system, upgraded the specification in 2000 and most recently in 2004. The goal of EMVco is to assure the various financial institutions and retailers that the specifications retain backward compatibility with the 1998 version.
Read more at Wikipedia.org
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