Smart credit cards are credit cards with embedded microprocessor chips. The microchip is capable of carrying out a variety of tasks. For example, you can make purchases from your credit account, debit account, or from a stored account value that is reloadable.

Because of its enhanced memory and processing capacity the microchip can accomodate several different applications and hold more information than was previously possible with magnetic strips. It can hold identification information, keep track of your participation in a loyalty program, or provide access to your office. In the future, your ATM, credit, and check cards may be consolidated on one smart card.

The microchip is also an added security measure designed to protect you from credit card fraud, particularly cloning. Microchips encrypt the information contained in the magnetic strip of the credit card and cannot be changed or deleted. If a skimmer tries to scan your card through the device, they will obtain only encrypted information and thus be unable to clone your credit card. If someone steals your smart card and disables the chip, the new swipe terminals will alert staff to ask for an ID or decline the transaction.

The increased memory and processing capabilities of the chip, along with the additional security benefits will enhance your bank card and allow your bank to offer you increased utility, convenience, and products that are tailored to your individual needs.