Advantages and disadvantages in implementation of smart cards in payment system

Abstract

Society has experienced the quickest changes in its history at the end of the last and the beginning of the millennium. There have been changes in the way in which many activities are being done, the changes in work structures, market and other fields. In this way, the industrial society evolved into informational. One of the significant trends in the development of technology is more frequent application of payment cards and greater electronic possibilities in this field, which enables new services. Unfortunately, as the card industry largely spread, the crime in misusing cards is becoming larger. Because of these reasons, the technology of producing these cards is continuously in progress. The migration from mag-stripe card to smart card became something inevitable and long-term plan of the most of European countries. This paper analyze the application of new technologies in card industry and estimates achievements.