Smart Card Readers: What are they, how do they work and where are they used?

Smart card readers work with modern smart cards to read digital data. They can be used in dozens of ways, and they are now so ubiquitous in modern life that most of us use the technology throughout the week without even realising it.

Here are the main things to know about smart card readers:

• They pair with smart cards, which are plastic credit card-shaped cards with an in-built chip.
• They can be used to read all kinds of information stored on cards, maintain security processes or perform other types of electronic transactions. For example, smart cards are used to identify people accessing a computer system or entering a building, to verify ID and to carry out financial transactions.
• The smart card reader is designed to read the data contained within the card.
• The reader is very easy to use, affordable and quick to install.
• As well as reading the information, smart card readers can write information to smart cards.
• They are used either through contact or contactless technology.

Where are they used

Smart card readers are used in many different businesses, offices, government and local council settings and across all types of organisations. They have rapidly become essential pieces of kit with ready benefits to users - and they're also very simple to operate. Many different industries use smart card readers, but perhaps the five biggest users and applications are:

1. Security: Fobs, cards and wearables are used to manage access in businesses everywhere. You can see examples of these access control smart cards here: https://www.idcardsdirect.co.uk/access-control.html

2. Education: with ID cards combined with access to buildings, particularly at universities. Find out more here: https://www.idcardsdirect.co.uk/blog/post/the-importance-of-id-cards-in-schools

3. Hospitality: including theme parks, hotels and casinos. Theme parks use wristbands with readers and hotels use cards instead of keys.

4. Retail: Smart card readers are probably the most obvious example of where we use this technology in our daily lives.

The industry is growing too, with figures suggesting the smart card market will be worth $3.9 billion by 2027, particularly as part of global efforts to transition to a cashless economy. This will see growth in areas such as biometric data and wearables.

How do they work?

The smart card reader sits within a larger digital system with a seamless interface between a remote or local computer. When a chip-enabled, or smart card, is presented, the reader reads its information and sends it to computer. The computer processes this information and sends data back to the card reader, if successfully authenticated the reader then allows an action - such as allowing access to a computer system, opening a door, confirming ID or concluding a payment. This all happens within an instant!

What types of smart card readers are there?

There are three main types of smart card readers and each has its own primary usage and benefits. For example:

Contact-based smart card readers

As the name suggests, these card readers require the card to be swiped across a reader or inserted into a slot. The card can then interact with the chip or magnetic strip and process the data. For example, most retail stores used these contact cards to process payments before contactless payments became popular.

Contactless smart card readers

These readers use RFID technology which doesn't require physical contact. Contactless card readers are now widely used and sometimes you don't even need to remove your smart card from its lanyard or wallet - such as when you pay for something under £100 in a supermarket, or swipe your access card to enter the office.

Dual interface smart card readers

These units combine contact and contactless methods, with both interfaces. Again, retail stores are an obvious example and offer both options to users.

Keen to find out more?

Please find our contact details, or choose the live chat feature, to chat with one of our friendly and helpful team today: https://www.idcardsdirect.co.uk/contact