A smart card is a card that is embedded with either a microprocessor and a memory chip or only a memory chip with non-programmable logic . The ic card can add, delete, and otherwise manipulate information on the card, while a memory-chip card (for example, pre-paid phone cards) can only undertake a pre-defined operation. Smart cards, unlike magnetic stripe cards, can carry all necessary functions and information on the card. Therefore, they do not require access to remote databases

At the time of the transaction. Today, there are three categories of smart cards, all of which are evolving rapidly into new markets and applications: integrated circuit (ic) microprocessor cards, integrated circuit (ic) memory cards, optical memory cards