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Smart Cards A smart card or chip card is a plastic card with an embedded integrated circuit chip. This chip can either be a microprocessor that can add, delete, and otherwise manipulate information, while memory-chip cards (for example, pre-paid phone cards) can only undertake pre-defined operations. Smart cards, unlike magnetic stripe cards, can carry all necessary functions and information on the card. Therefore, they do not require access to remote databases at the time of the transaction. Today, there are three main categories of smart cards, all of which are evolving rapidly into new markets and applications
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