Contact card


Two core elements distinguish a smart-card:

  • The nature and memory size of the chip. At the ‘low end’ of the scale are ‘memory cards’ which consist of a simple piece of memory with no processing power. At the ‘high end’ of the scale are cards with advanced microprocessors, advanced security, and extensive memory.
  • The means of communication with external devices:
    • Contact cards require the card to be inserted into a reading device, so that a set of electrical contacts on the card are in physical contact with the corresponding contacts of the reader.
    • Contactless cards work on the principle of near-distance wireless communications. They do not require actual physical contact with the reader. 

Smart-cards are now well established. All technical aspects of smart-cards are defined by international standards (especially ISO 7810 and ISO 7816). This includes the card shape, the location and allocation of contacts and connectors, communications protocols, and basic functionality. The great advantage of standardization is that cards, readers, and supporting equipment can all work together irrespective of the source of supply.

Smart-cards do not contain their own power source (e.g. battery). They receive the needed power from the electrical contacts of the reading device (or the electrical field in the case of contactless cards).

Smart-cards were first utilized in the public transport sector in the late-1980’s, and became increasingly established in the late 1990’s and early 2000’s. Major cities such as London, Paris, Hong Kong, Singapore, and Seoul implemented smart-cards during this era, while hundreds of lower profile cities and regions also did so.

During the 1990’s, contact cards were dominant for a number of reasons, including the certainty of retaining the card within the reading device for long enough to complete the transaction, faster data exchange, the prevalence of contact cards in other sectors (call-cards, banking), and the lack of finalized standards for contactless cards.

Nonetheless, it was always considered that contactless cards would be better for busy urban transit systems, on the basis that the transactions would be quicker and that dwell times would be reduced. As the limitations of contactless cards were overcome, they became the market leader and eventually have replaced contact cards almost completely.

In terms of actual application in the public transport sector, there is very little difference between contact and contactless cards. As smart-cards are relatively expensive and quite robust, they are generally used for multi-use applications.  The typical applications are:

  • Travel passes
  • Time-based fare products
  • Multi-journey tickets
  • Stored value

Smart-cards can store a significantly larger amount of data than magnetic-stripe tickets. This allows them to support multiple applications. The memory can be partitioned for different applications or even for different service providers.

They are also able to support advanced security methods (e.g. encryption algorithms). This makes them suited for money-based products.

Benefits of contact smart-cards are:

  • The tickets are machine-readable. This allows automation of fare collection and inspection processes.
  • They can hold multiple applications, including applications from different service providers.
  • Transaction processing is reliable and secure.
  • Transaction data can be generated, with extensive downstream potential.
  • The technology is used widely. It is supported by international standards.
  • A high level of security can be achieved. Even where it is technically possible to overcome smart-card security, the level of technology and support systems required outweigh the potential fraudulent gains.
  • The tickets can accept graphics for promotions and information.
  • The ticket stock has no value (other than the consumable cost) until the ticket is actually issued.

Cautions with regard to contact smart-cards are:

  • Smart-cards are relatively expensive. Lower-cost alternatives must be available for single–trip tickets and other infrequent use fare products.
  • Machines for issuing and re-loading tickets need to be purchased and maintained.
  • Smart-card readers and their upstream support devices are highly complex, with heavy software design and development burdens. That said, the machines do not have moving parts and can be highly reliable.
  • Smart-cards require a high degree of technical competence within the implementing entities.
  • Supply and control of ticket stock needs to be managed and monitored.
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