Smart cards contain chips and are similar to magnetic stripes.
With the usage of chips, information is stored on the smart cards.
The data stored in these chips can be updated.
for example, certain exclusive showrooms of branded products use these cards: when a customer buys a particular item, the smart card is swiped and 'points' are added to the card: these points can be used for money off if he gets targeted number of points.
The storage capacity of these cards are much greater than a magnetic stripe.
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