The difference between smart card and magnetic stripe card is Smart cards are more secure and have more capabilities than magnetic stripe cards:
- Security: Smart cards offer enhanced security due to their integrated microprocessors, which enable data processing independently of external connections. Additionally, they possess a greater capacity for storing authentication and account information compared to magnetic stripe cards.
- Data processing: Smart cards are capable of executing tasks such as encryption, decryption, and the computation of digital signatures directly on the card. In contrast, magnetic stripe cards convey data to the card issuer when the card is swiped through a reading device.
- Data storage: Smart cards have the capacity to hold substantial quantities of data.
- Interaction: Smart cards can engage with a reader through two methods: contact and contactless. Contact cards necessitate being inserted into the reader, while contactless cards are designed with an antenna that enables communication with the reader without requiring any physical contact.
- Durability: Magnetic stripe cards may experience deterioration as time progresses.
Magnetic stripe cards serve multiple functions, such as credit and debit cards, driver’s licenses, employee identification cards, hotel room keys, gift cards, and public transportation passes. Nevertheless, they are gradually being supplanted by more secure microchip technology.