smart card

finance

Also known as: stored-value card

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Last updated

July 16, 2026

Quick Summary

A smart card is a small plastic card with a built-in microprocessor designed to store and process data. These cards have become integral to modern financial systems, revolutionizing how individuals and businesses conduct transactions.12

Smart cards, also known as stored-value cards, contain a computer chip that can make and receive payments while recording the balance. They are used for various purposes, such as making phone calls, paying for parking, or riding public transit. While there was speculation that smart cards would lead to a cashless society, challenges remain in maintaining a generalized transfer system that is more cost-effective than using government currency.3

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money
Electronic money
…second form of EFT, “smart cards” (also known as stored-value cards), contain a computer chip that can make and receive payments while recording each new balance on the card. Users purchase the smart card (usually with currency or deposits) and can use it in place of currency. The issuer…
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…second form of EFT, “smart cards” (also known as stored-value cards), contain a computer chip that can make and receive payments while recording each new balance on the card. Users purchase the smart card (usually with currency or deposits) and can use it in place of currency. The issuer…
Read More