it cards and may prove to be the link between a cashless society and vastly improved banking and communication services. Smart cards will have much greater memory capacity than debit cards, thus opening up a wide array of possible uses.
In the broadest possible sense, smart cards will act as information managers. Currently smart cards can hold up to 16K of memory, thus allowing storage and application in the areas of payments, telecommunications, cardholder identification, account verification, transaction tracking, and health care. Like debit cards, electronic readers and writers can transfer funds into a smart card, from an owners account, on demand (Allen, 1995a).
Smart cards are already being used as payment and transaction vehicles. Cartes Bancaries in France claims a 50% reduction in fraud losses since the mandated use of smart card technologies. The use of smart cards could consolidate small cash expenditures locally and world wide. In the United States alone, $1.8 trillion in transactions under $10 each take place on a yearly basis. The use of smart cards, instead of cash or coin, could funnel those funds into a powerful revenue stream. The figures world wide are $8.1 trillion in small change transactions (Morrall, 1995).
Smart cards are also being used as access keys. In countries like South Africa, Estonia, China, and Columbia, where a lack of adequate telecommunications and credit authorization exists, smart cards can be pre loaded with necessary information, and encrypted for authorized use (Allen, 1995a).
In Greeley, Colorado, at Northern Colorado University, the smart card is being used in a multifunctional manner. Smart cards have been adapted to act as university identification cards and bank cards. The cards contain the students ID number, long distance MCI calling card number, and can access students voice mail on campus. In addition POS and ATM transactions on campus and around town are possible (Morra...