Smart Cards offer dramatic advancements in ID card security and functionality. Smart cards can store, process, communicate and encrypt large amounts of data, including biometric data and monetary values. They're often used for logical access control to networks or databases, or physical access control to buildings or rooms. Smart cards provide a means of effecting business transactions in a secure environment. Smart cards fall into two categories: contact and contactless.

Contact smart cards have a copper interface pad embedded on the surface of the card. The card must be inserted into a smart card reader to make a direct connection for the transfer of data. Contact smart cards typically have more memory and processing power than contactless cards. Some data encryption processes (used in high-security financial or legal applications) can only be performed by contact smart cards. Contact smart card readers work well in office environments, but not outdoors or in industrial applications.

Contactless smart cards only require close proximity to a reader (usually within a few inches) to achieve data transmission. Both the smart card and reader have internal antennas and wireless circuitry for secure communication. Using advanced data encryption techniques, contactless smart cards are every bit as secure as their contact counterparts. Contactless smart cards are ideal for access control, mass transit, vending and cafeteria payment, and dozens of other applications.