SMART CARD: Product
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 Smart cards have proven to provide great value to businesses and to the daily life of people.
The portable device stores securely personal data and monetary value. A smart card is superior to a magnetic striped card because the smart card has a large storage capacity, it is more reliable, it is more difficult to duplicate and most importantly, it can be empowered with the intelligence that allow high levels of transmission and storage security. Smart cards are now being used in a wide range of applications, such as access control, banking, GSM mobile phones, public transportation and pay TV.

 Smart Card Overview

Defined at its highest level, a smart card is a credit-card sized plastic card with an embedded computer chip. The chip can either be a microprocessor with internal memory or a memory chip with non-programmable logic. The chip connection is either via direct physical contact or remotely via a contactless electromagnetic interface.

 Technology

There are two general categories of smart cards: contact and contactless smart cards. A contact smart card requires insertion into a smart card reader with a direct connection to a conductive micromodule on the surface of the card (typically gold plated). It is via these physical contact points, that transmission of commands, data, and card status takes place.

The Diagram on the left shows the micromodule embedded into the plastic substrate or card. Prior to embedding, a cavity is formed or milled into the plastic card. Then either a cold or hot glue process bonds the micromodule to the card.

The Diagram below is a contact micromodule which is embedded into a plastic substrate.

The Diagram on the left shows the top and bottom card layers which sandwich the antenna/chip module. The antenna is typically 3 - 5 turns of very thin wire (or conductive ink), connected to the contactless chip.

Two additional categories, derived from the contact and contactless cards are Combo cards and Hybrid cards. A Hybrid card has two chips, each with its respective contact and contactless interface. The two chips are not connected, but for many applications, this Hybrid serves the needs of consumers and card issuers. Just emerging is the Combi card which in a single chip card with a contact and contactless interface. With Combi cards, it is now possible to access the same chip via a contact or contactless interface, with a very high level of security. The mass transportation and banking industries are expected to be the first to take advantage of this technology. The chips used in all of these cards fall into two categories as well: microprocessor chips and memory chips. A memory chip can be viewed as small floppy disks with optional security. Memory cards can hold from 103 bits to 16,000 bits of data. They are less expensive than micprocessor cards but with a corresponding decrease in data management security. They depend on the security of the card reader for their processing and are ideal when security requirements permit use of cards with low to medium security.

 Standards

The basic smart card standard is the ISO 7816 series, part 1-10. These standards are derived from the financial ID card standards and detail the physical, electrical, mechanical, and application programming interface to a contact chip card. Visit the Standards Page on the SCIA site for more information.

 Applications

The list of potential applications for smart card technology would be too long for this primer. Instead, listed below are some of the major applications seen around the world.

There are over 300,000,000 GSM mobile telephones with smart cards which contain the mobile phone security and subscription information. The handset is personalized to the individual by inserting the card which contains its phone number on the network, billing information, and frequently call numbers.

Almost every small dish TV satellite receiver uses a smart card as its removable security element and subscription information. There are over 4 million in the US alone between DirectTV, USSB and Echo Star. There are millions more in Europe and Asia.

The Financial industry has been quick to adopt smart card technology in various countries around the world. Every French Visa Debit card (over 25,000,000) has a chip in it. In Germany, about 40,000,000 banking cards have been issued. EuroPay, MasterCard, and Visa all have smart card programs for their bank members. In the Portugal and Singapore, the national banking networks have launched electronic purse projects. Proton has worked with its banking partners to issued over 25,000,000 electronic purse cards in several countries.

Various countries with national health care programs have deployed smart card systems. The largest is the German solution which deployed over 80,000,000 cards to every person in Germany and Austria.

There are over 100 countries world wide who have reduced or eliminated coins from the pay phone system by issuing smart cards. Germany, France, UK, Brazil, Mexico, and China have major programs.

Other applications for smart cards include computer/internet user authentication and non-repudiation, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, pass ports, and the list goes on. For more information, visit the about smart cards applications page on the SCIA site.

 About Amstec

Amstec is a distributor of Smart Card terminals and integrator of smart card technology for use in e-commerce environments. Founded in 1991 in The Netherlands, Amstec originally focused on fault tolerant hardware platforms for companies requiring 99.99% reliability. In 1999 Amstec extended its offerings with smart cards. Today, our range of Smart Card terminals provide a safe and secure, multifunctional “gateway” to the broad range of Internet applications based on the latest industry and technology standards with support of multiple chip and smart cards.

 Building Blocks

"Amstec provides building blocks for a unique series of e-commerce solutions. Either by making use of Internet or as a “stand alone” solution. Or by combining both, virtual and real world and really explore the potentials of e-commerce."

 Our Vision

It is generally expected in the market that IT and communication services will be one of the strongest growing industry segments. The biggest exponent of that environment is Internet.

On the service side, a broad range of "e-services" combined with secure communication, identification and authentication is emerging. E-commerce, e-ticketing, e-payment, e-banking, e-retail, e-…. It is expected that e-commerce will count for an annual revenue of at least US$ 10 billion by the year 2000 in the US only.

The global community is continually being linked together through various communication networks. This offers unparelled conveniences but there is also an obvious security threat. The provision of maximum e-services as fast as possible and as secure as possible with recognition of the individual as "a customer – consumer" will be the winning combination in the industry.
Ease of use but secure

"Amstec has the answer the market is waiting for in e-commerce: ease of use but fully secure. So many examples of insecure electronic business are revealed by the press, where solution providers struggle to find and implement the ways to do it safe."

Emerging technologies based on chip and smart cards provide that essential asset. This is exactly the market Amstec is addressing and that we are positioned for.

 Our Company

Amstec Inc., is a lean and mean technical company, based in Winter Haven, Florida. Through our extensive international contacts, we manage a "virtual organization" of 30 to 40 engineers and develop, manufacture, distribute and support a high tech series of Smart Card terminals.

To make this happen, a number of partners are contracted, each of them being one of the best in their respective market. Since we have at least a double source for each outsourced activity, we have the benefit of being able to choose between 2 or more partners; this being depending on lead times, quality and cost. Our highly capable consultants and managers for all different activities within Amstec, we stay fully in control and we see ourselves more or less as the Management Board of a much larger but very cost-effective company.

 End-to-End solution

"Amstec thinks in end-to-end solutions, providing the missing components in the current market. Components are cost effective and secure terminals, which can handle transactions based on smart cards, and relevant applications." All activities for developing and designing terminals are outsourced to specialist companies. Our close co- operation ensures quality and speed of working (any time to market is always too much…). Our production is outsourced to low-cost high-volume contract manufacturers in either the Far East or Eastern Europe facilities.

 Our Proposition

Our terminals provide:
A safe/secure, multifunctional “gateway” to the broad range of Internet applications based on the latest industry and technology standards with support of multiple chip and smart cards. End user (consumer) oriented with the best price/performance ratio.

 Smart Card Uses

The list of potential applications for smart card technology would be too long for this primer. Instead, listed below are some of the major applications seen around the world.

There are over 300,000,000 GSM mobile telephones with smart cards which contain the mobile phone security and subscription information. The handset is personalized to the individual by inserting the card which contains its phone number on the network, billing information, and frequently call numbers.

Almost every small dish TV satellite receiver uses a smart card as its removable security element and subscription information. There are over 4 million in the US alone between DirectTV, USSB and Echo Star. There are millions more in Europe and Asia.

The Financial industry has been quick to adopt smart card technology in various countries around the world. Every French Visa Debit card (over 25,000,000) has a chip in it. In Germany, about 40,000,000 banking cards have been issued. EuroPay, MasterCard, and Visa all have smart card programs for their bank members. In Portugal and Singapore, the national banking networks have launched electronic purse projects. Proton has worked with its banking partners to issued over 25,000,000 electronic purse cards in several countries.

Various countries with national health care programs have deployed smart card systems. The largest is the German solution which deployed over 80,000,000 cards to every person in Germany and Austria.

There are over 100 countries world wide who have reduced or eliminated coins from the pay phone system by issuing smart cards. Germany, France, UK, Brazil, Mexico, and China have major programs.

Other applications for smart cards include computer/internet user authentication and non-repudiation, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, pass ports, and the list goes on.

 Electronic Loyalty Program

To have a customer is great. To keep a customer is a challenge. The goal is to attract a customer back into your store. An easy way to increase customer loyalty is to seduce him with discounts or gifts after spending a certain amount of money at your store. Amstec has an of-the-shelf solution for retailers to introduce a scheme like this. Integrated in a cash register or stand-alone, fully adjustable to specific needs.

 Electronic Couponing

A flexible way to manage specific discounts or benefits to one customer is to make use of coupons. Like paper coupons, this “piece of value” is specific to a certain product or service, valid for a certain period, obtainable a specific person or group of persons. All this electronically and achievable via the internet!

 Electronic Membership

Many organizations - whether retail, professional or charitable - have members which are either issued a membership number or a card/letter with the member details and membership number printed on it. This information page is frequently misplaced by the member as it is static and has little perceived value.

If this membership information was to be stored on a smart card with extra features, then the convenience factor would increase likelihood of it being used more often with perceived value to the card holder. The issuing organization receives strong, visible identification, can easily track member status, record preferences, buying habits and issue new information and offers based on the usage habits. The member can easily and quickly access more features and information based on his personal preferences.

 Electronic Warranty

When buying a good, the manufacturer usually provide a certain warranty. Printed on paper? Why?
An implementation of Electronic Warranty provides fast and secure gathering of customer information and warranty regulation. Handling costs may be minimized and the Warranty Card issued may also function as a loyalty card!

 Electronic Ticketing

When your customer buys an entrance ticket to the cinemas or exhibition, he will receive a ticket. Printed on paper? Why? How do you handle a customer who wants to buy a ticket via the internet? Amstec can provide you with all you need to allow your customers to browse, choose, order and pay for their tickets online without leaving your site.

 Secure (System) Access

Either remote or directly accessing a system regularly requires passwords and logon id’s. Instead of remembering all of those difficult to remember strings it is much easier to use a smart card instead. With, for example, only 1 pin any system one is authorized for may be opened.