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Monday, June 19, 2006

Credit Card

Credit card system involves a type of retail transaction settlement and credit system. It is named after the small plastic card. A credit card is different from a debit card, in that the credit card issuer lends the consumer money rather than having the money removed from an account. Credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.

Credit Card Networks available:

  • American Express
  • Bankcard
  • Diners Club
  • Discover
  • MasterCard
  • UnionPay
  • VISA

Adapted from Wikipedia

Sunday, June 11, 2006

Smart credit card

The "smart" credit card is an innovative application that involves all aspects of cryptography (secret codes). A smart card has a microprocessor built into the card itself. Cryptography works in several ways:

  • The user must corroborate his identity to the card each time a transaction is made.
  • The card and the card reader execute a sequence of encrypted sign to verify that each is dealing with a legitimate counterpart.
  • Once this has been established, the transaction itself is carried out in encrypted form. This is to prevent anyone from impersonating either party to defraud the system.

Smart cards was first used in France in 1984. They are now hot commodities. In the United States, Visa and MasterCard are leading the way with their smart card technologies.

Adapted from http://money.howstuffworks.com