Smart cards offer convenient and quick methods for conducting financial transactions but leave users at risk of security breaches such as stolen passwords and identity theft. Smart cards are lightweight and highly transportable. With the simple swipe of these cards, consumers can make purchases quickly and easily; however, they can make spending all too easy and pose security risks.
Smart cards generally expedite sales and transactions at two or three times the rate of traditional sales. A good example of this is paying tolls on the highway: when paying with cash or coins, drivers must wait in lines then stop their cars to count out the exact change before starting again. With a smart card, however, which operates using radio frequencies, drivers do not need to stop to pay tolls. According to Smart Card Alliance, smart cards are also linked, in many instances, to online banking accounts, which lets users keep track of their accounts in real time. Lastly, their small size makes these cards easy to lose and steal.