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Should Your System be ‘Smart Card’ Compatible? Understanding your options is the first step to saving time and money on your credit card program. In an effort to keep their merchant service program current, business owners often ask if their current systems should accomodate ‘Smart Cards.’ A ‘Smart Card’ resembles a credit card in size and shape, but it is completely different in construction. A credit card is a simple piece of plastic. The ‘Smart Card’ usually contains an embedded microprocessor, which is a gold contact pad on one side of the card. The microprocessor replaces the magnetic stripe found on a credit card or debit card. ‘Smart Cards’ have been in use for over ten years, but they are not widely used in the United States as they are in Europe. In Europe, the health insurance and banking industries use the ‘Smart Card.’ Other common ‘Smart Card’ applications are:
As this technology is not currently popular in the United States, it would not make sense to upgrade your credit card machine simply to accommodate the ‘Smart Card.’ However, if you have to purchase a new machine anyway, it would be wise to choose one that is ‘Smart Card’ compatible. You can buy some very good machines for $250 to $400. Then you will be prepared if the ‘Smart Card’ does increase in useage. Citizens State Bank, a locally owned and operated community bank, was established in New Baltimore MI in 1922. Citizens State Bank specializes in serving small to medium-sized business owners in Macomb and St. Clair counties. To set a FREE No Obligation appointment to analyze your current merchant service program or to learn more about merchant services, contact Scott Orts at Citizens State Bank at 586.468.7500. Learn more about Citizens State Bank’s other products and services at www.mycommunitybank.com. © 2005 All Rights Reserved. No part of this article may be published without advance written approval.
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