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Articles - Advanced Cards 101 WHAT ARE ADVANCED CARDS?
Advanced cards are those employing technology
that is more advanced
than the magnetic
stripe
cards we use for
applications such
as credit
cards.
I. CARRYING COINS ON CARDS
Capacitive cards, also referred to as coin
cards, carry stored
value using a series
of electronic tokens
built into the card
for a variety of
applications such as public
transit, vending
machines, telephones and
parking meters. The
technology has advanced
over the past several
years and is now used
for Internet access
and identity card systems.
The cards use WORM
technology (write once,
read many) and operate
on contactless memory
in close proximity
of the reader.
The low cost (approximately 25 cents per
card) and the efficient
operation of capacitive
cards make them a
convenient solution to
carrying change.
Whether the cards are used
as part of a turnstile
system in mass transit,
or at a "Pay
and Display" parking
lot, transaction
processing is fast and user-friendly.
Each time the card enters a reader an electronic
token is deleted
from the card, providing
a higher level of
security than traditional
magnetic stripe cards.
Capacitive cards cannot
be reloaded, so that
once the stored amount
of tokens are deleted,
the card can be disposed.
Coincard International
Inc. supplies capacitive
cards to Prince George,
British Columbia
through Prince George
Transit Ltd. These
capacitive cards
are used as pre-paid
bus
fare passes for Prince
George residents.
THE HISTORY OF CAPACITIVE CARD TECHNOLOGY
| 1989: |
Doyle Argosy Innovators Ltd., the inventor,
is provincially incorporated with the objective
of developing a card system of similar cost
to magnetic systems, but with a higher level
of protection from both fraudulent re-loading
and counterfeiting. |
| 1995: |
British Columbia Transit initiates Alpha
field test of Coincards in Comox, BC. |
| 1996: |
US patent is received for Swipe Card technology. |
| 1997: |
British Columbia Transit initiates Beta field
tests of Coincards in Whistler, BC. The company
changes its name from Doyle Argosy Innovators
Ltd. to Coincard International Inc. |
| 1999: |
US patent is received for Coincard technology. |
| 2000: |
Geo-Encryption of technology is completed.
The Coincard product line expands to include
a compact, low energy insertion reader/writer
unit. This expands market potential from
automatic fare payment systems to areas such
as loyalty programs and vending, as well
as internet access and identity cards. |
| 2001: |
Coincard rolls out in the US market. |
II. A MINI-CD IN YOUR WALLET
Optical cards, also known as laser cards,
are virtually a CD on a card. Because of
the high data storage capability and durability
of this type of advanced card, kidney dialysis
patients in the United States are using the
technology to travel abroad with their kidney
dialysis information stored on optical cards.
Optical cards use
WORM technology and
are
capable of storing
10,000 times more
data
than a magnetic stripe
card and 200 to 400
times more than a
smart card.
The optical card
can apply many security
tools that are available
for advanced cards,
such as PIN, challenge-response
and biometrics.
In 1997, the United
States Immigration
and
Naturalization Service
selected the optical
card for use as the
new Permanent Resident
and Border Crossing
Cards because of
the
high security features
and storage capability,
according to LaserCard
Systems Corp.
THE HISTORY OF OPTICAL CARD TECHNOLOGY
| 1939: |
The first optical card is designed as a platter
in Eindhoven, Holland by Philips Electronics,
and then shelved during World War II. |
| 1968: |
Drexler Technology Corporation (DTC) is founded.
The company supplied the semi-conductor industry
with photomasks, photochemicals and photoplates
for integrated circuit production. |
| 1982: |
DTC invents and patents the optical memory
card, later trademarked as "LaserCard". |
| 1983: |
DTC starts the optical memory card technology
licensing program |
| 1984: |
Establishment of national optical memory
card standards committees in the United States
and Japan. |
| 1989: |
LaserCard Systems Corporation (LSC) is formed
as a wholly owned subsidiary of DTC. |
| 1991: |
The first worldwide use of LaserCard. Successful
field trials are held for the US Defense
Logistics Agency's "Automated Manifest
System" |
| 1992: |
VisX, the world's largest manufacturer of
laser eye surgery systems, begins using LaserCard
to control and record patient procedures
around the world. |
| 1994: |
Unveiling of the hybrid smart/optical card.
By the mid-nineties, LaserCard is being used
extensively around the globe in healthcare,
retail services and vehicle maintenance. |
| 1995: |
The first ISO standard for optical memory
cards is published. |
| 1996: |
ISO standards for optical memory cards completed. |
| 1997: |
LaserCard is declared a Department of Defense
standard for global logistics. The US Immigration
and Naturalization Service (INS) selects
the optical card for the new generation Permanent
Resident Card (or "Green Card").
Under contract with the INS, LSC develops
a multi-technology card reader capable of
handling five different card technologies. |
| 1998: |
LaserCard is specified for Laser Visa, a
multiple-entry Visa card issued to Mexican
citizens by the US Department of State. |
| 1999: |
The government of Italy specifies optical
memory as a key security feature for their
new national identification program. |
| 2000: |
The government of the State of Gujurat, India
issues a 5.5 million card contract with LaserCard
for a smart/optical card secure vehicle registration
program. The government of Canada issues
a Request for Proposal, specifying optical
memory cards, for a new Permanent Resident
Card. |
| 2001: |
Maharashtra, India and Kerala, India specify
smart/optical cards for their vehicle registration
programs. LSC introduces the "Sicuro"
system, a suite of highly secure optical
memory card issuing and transaction products.
Sicuro is now being marketed worldwide. |
III. WHAT'S SO SMART ABOUT SMART CARDS?
A smart, or chip, card is a plastic card
no larger than a credit card, containing
a central processing unit similar to that
of PCs. They are capable of managing files,
making calculations, processing data and
employing a wide variety of security tools.
Smart cards are currently in use in Canada
and around the world. Applications include
satellite dish de-scramblers, telephone and
internet banking, pre-paid phone cards and
campus identification.
Two types of chips
are available for
smart
card applications:
microprocessor and
memory
chips.
A memory chip has
optional security
and is
capable of holding
up to 16,000 bits
of data.
Memory cards are
less expensive than
microprocessors,
and are ideal for
low to medium security
applications that
do not require computations
on the card.
Microprocessor chips
can add, delete and
manipulate information
on their memory.
The
French Bankers' Association
uses microprocessor
chips for credit
card applications
to store
available cash and
compute diminishing
balance
as the cardholder
makes purchases.
Smart cards have
data storage capacity
ranging
from 300 to 32,000
bytes. Like all computing
devices, memory capacity
increases over time
as the technology
advances. Smart cards
capable
of storing 64,000
to 128,000 bytes
are being
tested, with plans
for ten times that
capacity
in the future.
CONTACT AND CONTACTLESS CARDS
Contact smart cards require insertion into
a smart card reader, whereas contactless
smart cards do not require physical contact
but must be operating within close proximity
of the reader. Both the card and the reader
are equipped with a radio frequency antenna
for communication, as well as an internal
chip for data exchange. Financial institutions
like Mondex and Visa use contact smart cards
for internet and telephone banking applications.
Contactless cards
are ideal for high-volume
areas where security
can be difficult
to
maintain. The use
of this type of smart
card
is most commonly
utilized for mass
transit,
like subway terminals,
but they also provide
fast and secure admittance
to thousands of
fans each year at
the Miami Dolphins
stadium
in Miami, Florida.
THE HISTORY OF SMART CARD TECHNOLOGY
| 1969: |
Roland Moreno begins work on serial memory
cards in France. |
| 1970: |
Dr. Kunitaka Arimura files first basic smart
card patent in Tokyo (Japan only). |
| 1974: |
Roland Moreno invents and files the first
broad-based smart card patents in France
and major industrial countries worldwide. |
| 1976: |
First licences are sold to Honeywell Bull,
Schlumberger and Philips from 1976 to 1978. |
| 1990: |
Worldwide interest in smart card technologies
grow due to declining costs and growth of
global fraud. |
| 1995: |
Europay International S.A., MasterCard International
and Visa International Association issue
EMV Specs (Integrated Circuit Cards Specifications
for Payment Systems). Members of Visa, MasterCard
and Interac form the Canadian Chip Card Committee
IMV Specs to develop common standards and
specifications to support the introduction
of smart cards in Canada. |
| 1999: |
The Province of Ontario announces in the
Throne Speech that it will begin moving to
smart card technology "to enhance efficiency
and combat fraud". |
| 2000: |
Canadian financial institutions issue a Request
for Proposal for services to design a national
infrastructure for smart cards using EMV
standards. Multi-application cards allow
for stronger business cases and increased
e-commerce use. |
IV. SMART CARDS AROUND THE WORLD
The French Bankers' Association in France
moved from magnetic stripe to smart card
technology in 1993, effectively controlling
bank card fraud using off-line authorization
and security.
More than 100 countries
worldwide have introduced
the use of smart
cards for telephones,
effectively
reducing or eliminating
coin-operated pay
phones.
Most small dish television satellite receivers
in North America use smart card technologies
for security elements and subscription information.
In China, the medical community has implemented
the use of smart cards through a fibre optic
network. This use of smart cards allows nurses
to sign onto the network in remote areas
where there is a shortage of doctors to perform
minor surgeries and procedures with the guidance
of a doctor in the city.
V. WHAT'S HAPPENING IN CANADA?
In Canada, loyalty and gift certificate programs
are common smart card uses. Currently smart
card technologies are being used across Canada
for transit, data security, stored value
and e-cash, time and attendance, parking
payment and other applications.
Industry Canada Community Access Program
(CAP)
This program will offer internet access at
public venues, such as libraries and community
centers, for Canadians who do not have PCs.
More than 50% of Canadians are deemed to
be internet disabled because of limited vision,
hand or arm disabilities, illiteracy, cultural
and language issues.
To overcome this obstacle, CAP will use smart
cards to store each user's profile and the
profile properties will be used to configure
the PC, activating the required software
and hardware to allow user access. CAP is
planning to have 10,000 sites across Canada
by 2004, with at least five PCs at each site.
Skills Data Card Initiative
This program is being designed as an identification
authentication and certification application
for
the construction
industry.
The Skills Data Card is a smart card that
will be carried by construction workers to
provide employers with job specific information.
Labourers, unions, contractors, consumers,
safety and training agencies and provincial
governments will use the card applications.
ACT Canada is an international non-profit
association for the advancement of card technologies.
We work on behalf of our members to promote
the awareness, understanding and use of all
advanced card technologies; including optical,
smart, capacitive and emerging technologies.
If you would like to learn more about ACT
Canada membership please visit the membership section of our web site or contact our office at
(905) 426-6360.
Please forward any comments, suggestions,
or questions to info(AT)actcda.com
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