Contactless Bankcards

Contactless bankcards in the North American market today are ISO/IEC 14443, the world’s most popular smart card.

Unlike magnetic stripe credit cards, a contactless bankcard is equipped with a micro-processor that has its own microprocessor, operating system, memory, and encryption. Smart cards will gain wide acceptance because they provide an unprecedented level of security.

• Fast reading speed: 0.3 seconds
• Low maintenance cost
• Contactless – RF card activates within a few inches of reader
• No need to remove card from wallet
• Fault rate 0.01% compared to 3.5% with magnetic stripe (M/S) cards
• High security from encryption – cards registered with bank can be replaced if lost and usage denied by machine reader if card is tampered
• Automated transaction and information management for transit agencies
• Proven technology: RF transit credit/debit card automated fare collection has been running successfully since 1996 in the Seoul Metro

Contactless bankcards also have a magnetic stripe on the back which the bank can encode in the usual way, so the cards have all the functionality of regular cards.

Other Formats

A variety of other formats are in use besides the card to identify the riders and their card accounts. Key fobs, wristwatches, mobile phone cases, and a host of other shapes can contain a chip and antenna and thus have the same functionality as a bankcard. Notwithstanding the format, the acceptance and clearing process is just the same.

Recently there has been increased interest in mobile phones having a different chip in them that uses a similar but different technology to communicate with terminals, called NFC (for "near-field communications.") Although there are some advantages to this newer technology, the sheer number of contactless bankcards in circulation and its longer history make it the primary format for transit systems worldwide.