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Smart Card Readers: What They Do and How They Work

Smart card readers: we encounter them in our everyday lives. Whether you’re entering a restricted-access area or you’re tapping your bank card via payWave, you likely interact with these contemporary contraptions without so much as a second thought.

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Image: Identity People

What are smart card readers, exactly? It sounds quite obvious when you spell it out, but smart card readers are technology that reads smart cards. And what are smart cards? They are items that are, no doubt, sitting in your wallet right now. Smart cards are plastic cards that have either a memory chip or a safe micro-controller built into them. These coordinated circuits can store information, and encrypt and validate data.

So, what are some common smart card reader uses, and what are some of the advantages of using them? You’ll need to keep reading to find out.

Different types of smart card reader

Smart card readers come in a variety of different types. The phrase ‘smart card reader’ is a blanket term, which is likely why it does not bring specific images to mind. Perhaps the most obvious example is an EFTPOS terminal—aka that machine you either ‘tap or swipe’ when you’re paying by card rather than cash.

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Contactless payments: the way most people pay for their coffee.

Another example of a smart card reader is a magnetic card door lock, which you likely use at work. If you work in an office, your workplace will be a storage hotspot for expensive equipment like computers and printers. This is hundred of dollars’ worth of stuff, which will need a smart security solution—literally. If you work for the government, this will go double. Government organisations tend to store not only expensive equipment but also high volumes of sensitive information.

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Does your workplace have one of these at the entrance?

If your organisation has more employees than you can count on one hand (or a high turnover rate—or both), it would be impractical and too expensive to cut keys for employees. A smart card reader, along with a batch of smart cards, is an alternative security solution that’s streamlined and cost-effective. If you have card-activated printers (or other office equipment) stored inside the office, these smart cards can double as device activators, as well as cost-effective key alternatives. If you have areas within your organisation restricted to senior staff, you can also distribute an alternate batch of smart cards amongst upper management.

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Melbournians will recognise these myki gates. To open the gates, tap your topped-up myki.

Smart cards have replaced paper tickets in many public transport systems. This system allows commuters to use smart cards again and again, as opposed to buying a paper ticket each time. How does a smart card reader work in this case? If you’ve ever used the system, you’ll know that it employs two smart card readers: one that allows you to purchase and download credit onto your card and one that deducts credit from your card each time you travel. Is this a more effective system than the single-use system of paper cards? That’s debatable. Is it the way of the future? Most definitely. The electronic component to this system means you can also link your smart card to a smartphone app.

Advantages of using a smart card reader

Again, ‘smart card reader’ is a blanket term; ergo, smart card readers will take different forms depending on the context. Along with this will come different advantages. However, from a blanket perspective, smart card readers bring benefits that defy specificity. These include:

Security

Smart cards and smart card readers have taken security to a new level. Anyone who knows how to use a smart card reader may be aware that its encryption and validation technology is king. Only when your card’s microchip makes contact with the card reader can you access the information that is encrypted on it. Whilst you can always pick a lock, the only other way to access something smart-card-protected is to physically break down the door (or whatever else is standing between you and the forbidden fruits, so to speak). The downside of this is that, should you misplace your smart card, it can be putty in the wrong hands. But this comes down to personal accountability and error.

They’re commonplace

As aforementioned, smart card readers are the way of the future. Whether you’re using them to travel by public transport or to access a restricted area, these electronic systems are secure, streamlined, and sometimes compatible with your devices. Throughout the peak of the COVID-19 pandemic, many organisations banned cash and accepted card-only payments. This is a trend that has echoed throughout the aftermath of the pre-vaccine era. If you’re not in the habit of using an EFTPOS terminal, for example, you may miss out on purchasing from your favourite (brick and mortar) shops.

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Image: Identity People

If organisations are to phase out manual methodologies—be these card-only payments or paper ticketing systems or physical keys—these will most likely be in preference of smart card readers. If you have a smart card, you’re ahead of the curve. They’re the way the world is going so you might as well jump on board (but only after tapping your card on the reader to deduct credit, of course).

Need any recommendations?

At Identity People, we stock Omnikey’s full range of USB Smart Card Readers. This range includes contact chip card readers, contactless USB readers (single-frequency), and multi-technology USB readers.

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Image: Identity People

Designed by HID Global, OmniKey smart card readers support all operating systems, as well as smart cards of any application. If you’re someone who prefers to read the information from their smart cards, then one of Omnikey’s USB Smart Card Readers may just fit your bill. Be sure to browse our range and see which style will fit your business needs.

Encrypt and validate!

So, what does a smart card reader do? It validates encrypted data, and it accesses stored information. It also presents an electronic security alternative to ye classic key-and-keyhole combination. You use these (sometimes smartphone-compatible) devices in your daily life, and there are harder-core variants available for more heavyduty security. Digitisation is the way of the future, and you should reflect this in your business decisions. Invest in an Omnikey USB Smart Card Reader today to tighten your business security and propel it into the 21st century.