The following glossary provides definitions of terms commonly used in the manufacturing, technology, data processing, security and personalization processes we employ.

| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |

A

ABS (Acrylonitrile Butadiene Styrene)
The plastic used to make molded (or injected) card bodies for certain cards.

Access Card
A machine-readable card used to achieve computer access, physical entry, or passage.

40-bit and 128-bit
The length of a cryptographic encryption key. Each bit doubles the amount of time it would take to break the encryption code.

Algorithm
Rules specifying the procedure for a computation; a mathematical routine used to perform computations (often used in the practice of cryptography).

Analog
Information presented in the form of a continuously varying signal.

APDU (Application Protocol Data Unit)
The basic command unit for a Smart Card. An APDU contains either a command message or a response message, sent from the interface device to the Smart Card or from the card to the device.

API (Application Programming Interface)
A definition of calling conventions by which an application program accesses other services such as the operating system, drivers, databases, or middleware layers.

ANSI (American National Standard Institute)

Asynchronous Password Generation
A method of generating a unique one-time password for a computer user based on a challenge-response sequence between a host and a device possessed by the user.

ATM (Automated Teller Machine)
Bank services, such as cash withdrawal and deposit, are offered by these machines after checking the user identity by any method (e.g., a financial card).

ATR (Answer To Reset)
A message that is returned by a Smart Card when it is powered up or when its reset pin is activated. The ATR indicates the card type, communication, and other basic information.

Authenticate
To validate a user; provide proof of identity or origin.

Authentication
The process whereby a card, terminal or person proves who they are. A fundamental part of many cryptography systems.

(External) Authentication
The procedure used to authenticate the external world (e.g., terminal) to the card.

(Internal) Authentication
The procedure used to prove that the card is genuine by means of an algorithm, a random value and a secret key.

The authentication process can be further distinguished between passive authentication in which the same values are used each time (e.g., PIN) and active authentication in which an algorithm and variable values are used.

Authorization
A card issuer’s guarantee to a card acceptor that he will honour a transaction.

Automated Clearing House
An organization that handles automated payments, e.g., direct debits, standing order payments, direct payroll deposits and other electronic credit transfers, and to consolidate provider billings.

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B

Band Width
The amount of data that can be sent through a connection. Band width is usually measured in bits per second (bps). A normal page of hypertext ranges from 6,000 to 20,000 bits (not counting graphics).

Baud
A unit of signalling speed. The speed in baud is the number of discrete conditions or signal elements per second. It is now largely obsolete and has been replaced by bits per second (bps).

Benday Print
To the eye, it is a gray area. It is made up of a uniform series of dots equally spaced apart. The size of the dot reflects the intensity of the tine (per cent Benday). The different values are 5%, 10%, 20%, 30%, 40%, 50%, 60%, 70% and 90%.

Biometrics
The ability to automatically identify an individual using biological features such as fingerprints, voiceprints, and retinal scans.

Bit
Unit of binary storage – a single-digit number in binary numbering, in other words, either a 1 or a zero. Used in computers and integrated circuit (IC) cards.

BPS (bits per second)
Data transmission speed, the number of pieces of information transmitted per second.

Byte
Memory space required for one character of data. Most cards use an 8 bit byte, although some use 4, 5, 6, or 7 bit bytes. This is the smallest addressable quantum of information that can be handled by the unit.

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C

CA (Certification Authority)
The organization that issues certificates and takes liability associated with the validity of the holder’s identity. Often financial and institutional organizations.

CAD (Card Acceptor Device)
A hardware device used to read and write information on a card. The term was invented by the IC (integrated circuit) card industry, but it can be used to describe a reader/writer device for any card technology.

Capacitive Coupling
In contactless cards, a system for interchanging data with an external device.

Card Authentication Method
Process used to verify the authenticity of a card.

Card Read-Write
Equipment that can electronically read the information on one or many types of cards and modify specific data fields.

CDMA (Code Division Multiple Access)
Transmission technique that uses simultaneous transmission and reception of several messages, each with a unique identity (e.g., CDMA can be used between a cellphone and a radio base station).

Certificate
A file, digitally signed by a Certification Authority. There are many different types of certificates (the most common being X 509).

Checksum
A count of the number of bits in a transmission unit so that the recipient can make sure the correct number of bits arrived and that the message is intact. Also called Hash.

Certificate Policy (CP)
A Certificate Policy is a named set of rules that indicates the applicability of a certificate to a particular community and/or class of application with common security requirements.

Charge Card
A payment card that provides automatic credit within a given invoice date (usually monthly).

Charge-Back
Issuer generated reversal of all or a portion of an amount previously posted to a cardholder account.

Chip
A small square of thin, semiconductor material, such as silicon, that has been chemically processed to have a specific set of electrical characteristics such as circuits, storage, and/or logic elements. Also known as an integrated circuit (IC).

Ciphertext
Encrypted output of a cryptographic algorithm.

Clearing
The processing of financial transactions between the acquirer and issuer for reconciliation, billing, and statement use.

Closed Pre-paid System
A system where the issuer and acquirer of the card is the same party. The card is issued by the party that provides those services which can be accessed by the card.

Closed System
A system whose use is limited to the original application issuer(s). Typically, a card payment system where the card issuer is also the service provider and an independent funds-clearing function is not required. Common closed systems include campus cards, corporate badges, etc. The opposite of an Open System.

CMS (Card Management System)
Tools and services used to deploy and manage Smart Card-based applications. CMS is used primarily to manage the lifecycle of cards and applications hosted by the cards.

Coercivity
In magnetic media, the magnetic flux strength required to de-magnetize a previously saturated material. The intrinsic coercivity of any magnetic material is measured at the half width of its hysteresis loop. See also “High Coercivity Magnetic Stripe” and “Low Coercivity Magnetic Stripe.”

Combi Card
A combination of surface pad for contact applications and a coil/RF (radio frequency) capability for contactless applications, both of which are connected to the same chip.

Company Card
A card issued to or by a company for use by an employee for business-related transactions (e.g., purchases, logical access, physical access).

Contact
Electrical connection points between a Smart Card and its external interface device. ISO standard integrated circuit cards have eight contact points.

Contact Smart Card
A Smart Card that operates by physical contact between the reader and the Smart Card’s different contacts (in comparison to contactless Smart Cards).

Contactless Card
An integrated circuit card that enables energy to flow between the card and the interfacing device without a visible module and without the use of contact. Instead, induction or high-frequency transmission techniques are used through a radio frequency (RF) interface.

COS (Chip Operated System)
A set of instructions permanently burned into the Read-Only-Memory (ROM) of a Smart Card. Also called a “Mask.”

Coupler
An electronic system used to read the Smart Card. It is the basis of a reader. Designed to be integrated in a machine (e.g., gaming machine, gas meter, etc.).

CRC (Cyclic Redundancy Check)
A popular method of ensuring transmissions have not been garbled.

Credit Card
Any card allowing its owner to spend money with no immediate reimbursement. Credit cards in EPOS generate electronic loans.

Cryptographic Key
Parameter used in conjunction with an algorithm for the purpose of validation, authentication, encipherment, or decipherment.

Cryptography
The study of mathematical methods of encoding information to make it indiscernible to unauthorized individuals.

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D

Data Encryption Algorithm
An ANSI Standard which describes a cryptographic algorithm for encrypting data. The algorithm is private key driven. Also referred to as the Data Encryption Standard (DES).

Debit Card
Much like a credit card, but immediately takes the money out of an account and transfers it to another account. In other words, it replaces a cheque (with no delay to give the issuer time to cover it) and does not have any credit line associated with it.

Decryption
Converting encrypted information back into plain text (or clear text). Also known as decipherment.

DES (Data Encryption Standard)
The U.S. standard defining a symmetric cryptosystem for use by the U.S. Government. Often used in payment systems with the DES algorithm.

DF (Dedicated File)
Memory organization for microprocessor cards: a DF is a logical entity that holds a number of elementary files (EF). In multi-purpose cards, each DF will normally correspond to a distinct application.

Digital
Said of systems whose information is represented in binary form. Compare analog.

Digital Optical Laser Card
A portable card that passively stores information in the form of high-density marks or bars.

Digital Signature
A mathematical technique to “sign” a message by a sender. It is generated using an asymmetric cryptographic algorithm and information that identifies the sender.

Digital Signature Standard (DSS)
A standard for generating a non-repudiatable electronic code linking the user to a specific transaction. The standard specifies an algorithm called the digital signature algorithm (DSA).

Display Card
Smart Cards that also contain a keyboard and display plus battery.

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E

e-Cash
Digital money, typically in the form of downloadable “digital coins,” that can be stored in a bank account, on a PC, or on a Smart Card.

e-com/e-Commerce (Electronic Commerce)
Business that is conducted electronically (up to and including payment) and usually over the Internet.

e-Purse
See “Electronic Purse.”

e-Wallet
See “Electronic Wallet.”

EBT (Electronic Benefits Transfer)

EEPROM (Electronically Erasable Programmable Read Only Memory)
A non-volatile memory where data can be erased electronically and rewritten many times.

EF (Elementary File)
Memory organization for microprocessor cards. The smallest logical entity that can be secured in the operating system. File containing data.

EFTPOS (Electronic Funds Transfer at Point of Sale)
Any payment by a user at an acceptor that is processed electronically.

Electronic Purse
A stored value application in a chip on a card where units may be spent with money. It may or may not be rechargeable.

Electronic Wallet
Generally refers to integrated circuit card or super Smart Card capable of executing a variety of financial transactions and identification functions. More sophisticated than an electronic purse, a wallet may include debit, credit, cash card and other functions.

Embedding
The operation that consists in placing the module or Smart Card chip in the cavity of the card body.

Embossing
A technique of depressing the back surface of the card in order to raise the front surface of the card with alphanumeric information. The height of the embossed characters is approximately .018 inches.

EMEA (Europe, Middle East, Africa)
Acronym for the geographic area covering Europe, the Middle East, and Africa.

EMV (EuroPay, MasterCard, Visa)
Acronym for the collaboration of the EuroPay, MasterCard, and Visa systems.

EMV Specifications
Specifications developed cooperatively by EuroPay, MasterCard and Visa (EMV) to ensure global interoperability of chip cards and terminals, including international debit/credit and Smart Card.

Encoding
Machine-readable codes placed on the cards for use with automatic readers, such as automatic tellers, cash dispensers, and point-of-sale terminals. The most common form of encoding is on a magnetic stripe. Other types include OCR-A printing, Hollerith, bar codes, and telephone codes. Encoded information on the card allows it to access automatic electronic reading devices.

Encryption
The use of cryptographic algorithms to encode clear text data (e.g., PINs) to ensure that the clear text data cannot be learned.

Enrollment
The certification of an individual in a program, (e.g., healthcare, welfare).

EPROM (Electronically Programmable Read Only Memory)
Memory which can be written to only once and can only be reset using UV light when accessible.

ETSI (European Telecommunications Standards Institute)
The E.U. organization in charge of defining European telecommunications standards. The most known European telecom standard is GSM.

Expiration Date
The date after which a card, account, or application ceases to be valid for transaction use, unless an exception process is used to gain permission. Also known as expiry date.

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F

Fab (short for Fabrication)
In the semiconductor industry, a facility that makes integrated circuits from semiconductor wafers.

FeRAM (Ferroelectric RAM)
An emerging non-volatile memory technology (i.e., it does not lose its data if the power is shut off). FeRAM can read data thousands of times faster at far lower voltage than other non-volatile memory devices.

Firmware
Low-level software that is similar to hardware features. This software operates by exchanging commands directly with an external device or with specific software loaded in the product.

Foundry
A wafer production and processing plant. Usually referring to a facility that is available on a contract basis.

FSTC (Financial Services Technology Consortium)

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G

GSM (Global System for Mobile Communications)
A European standard for digital cellular telephones that has now been widely adopted throughout the world. Under the ETSI standard, GSM telephones contain a SIM Smart Card that identifies the individual subscriber. The phone number and user identity are not associated with a specific telephone. GSM handsets employ plug-in Smart Cards.

GSM 1800 (also DCS 1800 or PCN) network working at a frequency of 1800 MHz. Used notably in Europe, Asia-Pacific and Australia. GSM 1900 (PCS 1900) network working a frequency of 1900 MHz. used notably in the U.S. and Canada. GSM 900 (also GSM) Used in over 100 countries, particularly in Europe and Asia Pacific.
See ETSI, ITU, VAS.

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H

Handshake
A process between two devices such as a card, terminal, or modem to establish a common dialog. Parameters of the dialog may include speed, parity, number of bits, stop bits, and other basic information.

Hardwired
Said of electronic circuits that perform fixed logical operations, rather than a stored program. See “Masked.”

Health Card
A card used to store information about medical history or insurance coverage. May be of any technology.

High Coercivity Magnetic Stripe
Magnetic tape that requires more than 2,750 oersted to encode, change, or erase.

Hologram
Unique photographic printing that gives the image a three-dimensional effect.

Home Banking
System that allows customers to access banking services from home (e.g., inquiries, transfers) via devices such as telephones, televisions, personal computers, and screen phones.

Host System
A computer or intelligent terminal sometimes used to authorize card transactions by checking hot-card lists and account balances.

Hybrid Cards
Cards which support more than one technology, such as an IC (integrated circuit) card with a magnetic stripe.

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I

IEC (International Electrotechnical Commission)

Initialization
Setting data fields on card. First stage of the card issuing process. This process loads all the data common to one application into the Smart Card’s EEPROM. See “Personalization.”

Internet
An open external electronic network based on the TCP/IP protocol.

Interoperability
The ability of products manufactured by different companies to operate correctly with one another.

ISO (International Organization for Standardization)
The main international standards organization. ISO works to ensure that chip-makers, software developers, and Smart Card companies comply with the same specifications.

ISO 10202
Financial transaction cards – secure architecture of financial transaction systems using integrated circuit cards. Consists of multiple parts dealing with the card life cycle, the transaction process, cryptographic key relationships, secure application modules, algorithms, and key management.

ISO 10373
Identification cards – test methods.

ISO 10536
Identification cards – contactless integrated circuit(s) cards. Consists of several parts dealing with the physical dimensions of the cards, the dimensions and location of the coupling area, optical properties, and logical data structure.

ISO 11693
Optical cards – general characteristics.

ISO 11694
Optical cards – physical characteristics, dimensions, and location of accessible optical area, optical properties, and logical data structure.

ISO 7810
Identification cards – physical characteristics. Specifies the nominal dimensions of identification cards.

ISO 7811
Identification cards – recording technique. Consists of several parts specifying the location of embossing areas as well as magnetic track locations.

ISO 7812
Identification cards – identification of issuers. Consists of two elements - numbering system and applications and registration procedures for card issuer identifiers.

ISO 7813
Identification cards – financial transaction cards. Specifies the dimensions of financial cards (specific option of 7810) as well as the structure of the data stored in magnetic tracks 1 and 2.

ISO 7816
Identification cards – integrated circuit(s) cards with contacts. Consists of several parts dealing with the physical dimensions of the cards, the dimensions and the contacts location, the electronic signals and the transmission protocols, the inter-industry commands and responses, a numbering system, registration procedure for application identifiers, data for interchange and, in the future, of the advanced commands as well as the security architecture.

ISO 9992
Financial transaction cards – messages between the integrated circuit card and the card-accepting device. Specifies the functions, messages, data elements as well as the structures of multi-application financial cards built for interchange.

Issuer
An entity that issues cards.

ITSEC (Information Technology Security Evaluation Certification)
A set of criteria adopted by Europe and Australia used to evaluate the security of software and computer components.

ITU (International Telecommunications Union)
The international agency in charge of telecommunications coordination. Successor to CCITT. See “ETSI.”

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J

Java
An operating system developed by Sun Microsystems – standards-based architecture designed to deliver cross-platform portability.

Java Card
A set of specifications for running a subset of Java on a Smart Card. See “Java” and “Open OS.”

JCF (Java Card Forum)
An industry association devoted to the advancement of the Java Card specifications to serve the markets for Java Card.

Journal
A listing of all pertinent payment transactions and the account(s) to which they apply.

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K

Key
A parameter used in conjunction with a cryptographic algorithm that is computationally infeasible to deduce from the input and output data. See also Public Key, Private Key, Symmetric Key, and Cryptographic Key.

Key Escrow (or trusted third party)
A scheme whereby an authorized body keeps a copy of all private keys, which can be revealed only upon court order. See “Public Key.”

Key Management
The process by which cryptographic keys are provided for use between authorized communicating parties and whereby those keys are subject to secure procedures until they have been destroyed.

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L

Lamination
A clear plastic (usually about .0015" thick) is placed on the front and/or back of a card and fused to the printed core with heat and pressure over a period of time (15-25 minutes). Its purpose is to protect the printing on the card from being scratched off. Lamination finishes are available in “polish” (P) or “matte” (M). The polish or matte finish can be applied to either or both sides of the card.

Legacy System
An information system that is outdated yet which still provides useful service (e.g., punch card system).

Lifecyle
The time between the issuance of a Smart Card and its cancellation or expiration.

Litho Printing (Lithographic Printing)
An aluminum plate is coated with one colour of oil base ink that sticks only to the desired image on the plate. The image coated with ink is then transferred (offset) onto a rubber blanket. From the blanket, the image is transferred onto the plastic sheet. Registration and detail, process work, and cost are three benefits of litho printing.

Low Coercivity Magnetic Stripe
Regular magnetic stripes made of gamma ferric oxide are called low-coercivity stripes, as opposed to new, high-coercivity materials. Low-coercivity stripes are magnetized with 300 oersted magnetic fields.

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M

MAC (Message Authentication Code)
A digital code generated using a cryptographic algorithm that shows that a message has not been altered.

Magnetic Stripe Card
A card that has a strip of magnetic tape material attached to its surface. This is the standard technology used for bank cards (ATM, credit, and debit cards), transportation (subways, etc.), and for other applications. Generally requires a reader that interfaces with a computer.

Mapping (also called Memory Map)
A functional representation of the different blocks in the memory of a chip.

Mask
A set of instructions permanently stored into the ROM of a Smart Card. See COS.

Master Key
Main secret code of a Smart Card. Depending on the card model, this key may have some privileges, such as card reactivation or erasing. The master key is usually owned by the card issuer.

M-Commerce (Mobile Commerce)
The process of enabling mobile transactions via wireless terminals, wireless Internet applications, etc. Mobile commerce expands secure payment methods for retailers such as mobile merchants, taxis, stadiums and vending machines.

Memory Card
A Smart Card containing a memory chip with read/write capability and, in some cases, hardwired security functions. Some people do not consider memory cards as Smart Cards.

Microprocessor
A microcomputer with all of its processing facilities on a single chip, including registers and possible cache memory. Also called microprocessor-on-a-chip. A microcomputer or micro-controller also has data and program memory on the same chip.

Module (also called Micro-Module)
The unit formed of a chip and a contact plate, with fine connecting wires that are encapsulated in a drop of epoxy resin. The module is embedded in a cavity in the card body.

Mondex
Re-loadable card-to-card multi-currency electronic purse. It is unique in enabling person-to-person transactions and in featuring no audit beyond the parties involved in the transaction.

MPU (Microprocessor Unit)
See “Smart Card.”

Multi-Application Card
A Smart Card offering several services or applications (usually from the same issuer) in the same chip.

MULTOS
A Smart Card open operating system developed by MAOSCO, notably for financial transactions. See “Open OS.”

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N

Non-Repudiation
The originator cannot deny participation in a transaction or transmission.

Non-Volatile Memory
A semiconductor memory that retains its content when power is removed.

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O

Oersted
A unit of magnetic coercive force. A measure of how much record current is necessary to write or erase encoded data.

Off-Line
A transaction during which no direct connection is made to a central computer facility. See “On-Line.”

On-Line
A transaction during which a direct connection is made to a central computer facility (usually via the public telephone network or computer networks).

Offset
A condition which occurs when print from one card is transferred onto another. This most often happens if the ink is still wet or a silk-screened signature panel is pressed against the front of another card, as in packing. If offset is visible, it may cause the card to be rejected.

Also, a method of printing or engraving in which ink is transferred from a newly printed surface to another surface so that the final impression is in the same sense as the plate or type.

Open OS (Operating System)
A card system that involves multiple issuers of cards that can be used to access services or purchase products as multiple services providers. An open system requires the processing of interchange transactions, usually by an independent “system operator.”

Optical Memory Card
Also known as laser cards, because a low-intensity laser is used to burn holes on several microns in diameter into a reflective material exposing a substratum of lower reflectivity. The presence or absence of a burned hole represents bits. The area of high and low reflectivity are read using a precision light source.

OTA (Over the Air)
Transmission using microwave channels. This acronym is used in the world of wireless telecommunications.

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P

Padding
One or more bits appended to a message in order to ensure that it contains the required number of bits or bytes.

PC Card
Standard architecture-independent extension device. These cards are typically used in laptop computers (formerly called “PCMCIA”).

PCMCIA Card
A high-capacity, rigid, battery-powered card defined by the Personal Computer Memory Card International Association. It is generally used instead of more conventional floppy disk drives in portable computers. The interface of the reader is made by edge contacts on the card.

Personalization
The process of initializing a card with data that ties it uniquely to a given cardholder and account.

The Smart Card is modified to contain the information for one person. Graphical personalization modifies the visual aspect of the card (holder’s name, photograph). Electrical personalization modifies the information in the card’s chip.

Pilot
Small-scale deployment of a smart technology solution in the final customer’s environment. A pilot application allows issuers to determine whether or not the solution meets specific requirements.

PIN (Personal Identification Number)
In magnetic stripe cards, the secret number entered by the card user for performing transactions. In Smart Cards, the term is applied by extension to the principal secret code of the user.

PIN Pad
A key pad for entering PIN values.

PKCS (Public-Key Cryptography Standards)
Informal inter-vendor standards developed in 1991 under the impetus of RSA.

PKI (Public Key Infrastructure)
The software and/or hardware components necessary to manage and enable the effective use of public key encryption technology, particularly on a large scale. See “Public Key” and “Cryptography.”

PKI Operations and Administration
The practices, procedures, tools, and technical insights of how to support the day-to-day management (operations and administration) of a high performance PKI environment in an effective and secure manner.

Plastic Migration
Occurs over time when plastic materials are placed on top of each other, causing them to lose their plasticizer (makes plastic soft and pliable). For example, a plastic card becomes brittle when placed in a wallet made of plasticized nylon

Plug or Plug-In Card
Preliminary cutout for SIM cards. See “SIM.”

Plug-In
A piece of software that adds features to a browser (or other software package).

PMS Number (Pantone Matching System Number)
Ink colour mix number. Matching system used for matching the ink on the plastic card to the colour chip. This is available from Pantone, Inc., 55 Knickerbocker Road, Moonachie, N.Y. 07074 U.S.A.

Point of Sale (POS)
The location at which electronic payment transactions occur for the exchange of value for goods or services. Many times used to reference the hardware and/or terminal used for the transaction.

Polyvinyl Chloride (PVC)
Material used to make plastic cards, including Smart Cards.

Pre-paid Card
A card used to store monetary value. It is used instead of cash to pay for a single service such as pay telephone or public transportation and, in some cases, may be reloaded with additional value. It can be of any technology – from paper with a magnetic stripe to a card with a combined microprocessor and memory. Those which cannot have additional value reloaded are typically a throw-away.

Private Key
In asymmetric cryptography, the key which is held only by the user, either in hardware or software authentication and encryption.

PROM (Programmable Read-Only Memory)
A read-only memory that can be written to only once. See “EEPROM” and “Non-Volatile.”

Proof
A sample or prototype of the art instructions that the customer has supplied the card manufacturer. There are four types of proofs:

1) Colour Key
Most often used. It does not indicate exact colours; it merely indicates colour break-up and demonstrate the graphics and graphics position desired.

2) Black and White

Used normally when there are multiple backs being used with the same front. It allows the customer to verify that the copy in each case is correct.

3) Blue Line

It is the least desirable because it does not show colour break-up. Used when faxing a proof to a customer or when very fast turnaround on a proof is needed.

4) Press Proof

An exact sample that is produced on one of the printing presses, laminated, and processed under actual manufacturing conditions. This is very expensive since the press has to be completely set up for this prototype run.

Protocol
The procedure for interchange of information between two or more communicating parties. A set of rules and procedures governing interchange of information between a Smart Card and a reader. The ISO defines several protocols, including T=0, T=1, and T=14.

Provider Healthcare
A person, organization, or institution that provides medical services or services related to medical treatment.

Proximity
Contactless technology operating at a distance of approximately 10 cm. See “Reading Distance.”

Public Key
A cryptographic system that uses two different keys (public and private) for encrypting and signing data. The most known public key algorithm is RSA. See “Digital Signature,” “Secret Key,” and “Certification Authority.”

Public Key Encryption
An asymmetric encryption cypher using different but mathematically related keys for encryption and decryption. The sender and recipient each holds a secret key known only to them, and these are used with generally known public keys for sending and receiving data. When either the secret or public key is used to encrypt information, its related pair will decrypt that information. Although both keys are mathematically related, there is no known method to practically derive a key's pair if that key is very large.

Public Key Infrastructure
Provides the basis for managing digital certificates/cryptographic keys for the purpose of establishing trust between network users through public-key cryptography protocols, standards and services.

Public Key System
Cryptographic method using pairs of cryptographic keys, one of which is secret and one is public. If encipherment is done using the public key, decipherment requires application of the corresponding secret key and vice versa.

PVC (Polyvinyl Chloride)
A type of plastic used in the production of laminated card bodies for certain types of Smart Cards, notably those that require embossing, signature panels or overlays. See also “ABS.”

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R

RAD (Rapid Application Development)
An approach that relies on small teams using joint application development and iterative-prototyping techniques to construct interactive systems within several months.

Radio Frequency (RF)
Radio waves used by some cards and tags instead of contact pads to communicate and provide power to the chip.

RAM (Random Access Memory)
High-speed memory used for temporary storage and an input/output buffer in Smart Cards.

Reading Distance
The distance between the antenna of a reader and a tag over which the read function can be effectively performed. See “Proximity.”

Reg. “E” Registration Authority
The organization that receives individual users to verify their credentials prior to emission of a certificate. Regulation disseminated by the Federal Reserve Bank under the Electronic Funds Transfer Act establishing the rights and responsibilities of parties involved in electronic funds transfer transactions. See “CA” and “Public Key.”

Retailer Card
Proprietary card issued by a retailer or retailing group.

RF Card
Generally a credit card size plastic which communicates with a transceiver (transmitter and receiver), ranging in distance up to twenty feet.

RF Illumination
Similar to regular illumination of an area with a flashlight, but instead using low power RF energy with energy levels equivalent to an ordinary flashlight.

RF Watermark
A design impressed, imbedded in, or printed on paper and plastic during manufacture that is detectable when this material is RF illuminated.

RFID (Radio Frequency Identification)
Automatic identification and data capture system comprising readers and tags. Data is transferred using modulated inductive or radiating electromagnetic carriers. See “Tag,” “Reading Distance” and “Contactless.”

ROM (Read Only Memory)
Memory used to store the chip operating system (COS or MASK) which cannot be altered once created.

RSA
A proprietary, asymmetric, paired-key algorithm named for its creators – Rivest, Shamir and Adelman.

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S

SAM (Security Access Module)
A dedicated microprocessor unit that conducts active authentication with a memory or microprocessor card.

Scratch Card
A card that is produced with special ink that can be scratched away to reveal a number or message.

SDK (Software Development Kit)
A set of development utilities for writing software applications, usually associated with specific environments.

Secret Key
The key used in a symmetric, cryptographic algorithm, where the same key is used for encryption and decryption.

Secured Sockets Layer (SSL)
A security protocol that facilitates secure Internet transactions.

Security Features
Measures taken to achieve a reasonable freedom from accidental, criminal, fraudulent, and vandalizing actions while maintaining sensitivity to unexpected attacks or system failures that cannot be distinguished from attacks.

Service Provider
An entity, such as a merchant, vending operator, or movie theatre, that accepts cards for payment of products sold and services rendered.

SET (Secure Electronic Transaction)
MasterCard and Visa's protocol for sending encrypted credit card numbers over the Internet. The merchant never gets to know the customer's card number, thus limiting fraud.

SHA-1 (Secure Hash Algorithm 1)
A hash algorithm developed by the National Institute of Standards and Technology and the National Security Agency. See “Certificate” and “Digital Signature.”

Signature Panel
Area on a card designated for the cardholder to sign his/her name. A signature panel can be silk-screened or hot-stamped onto a laminated card. A non-laminated card may not require a special signature panel application, since the raw plastic card will absorb the ink from a ballpoint pen.

SIM (Subscriber Identification Module)
A Smart Card for GSM systems holding the subscriber’s identification number, security information, and memory for a personal directory of numbers, thus allowing him to call from any GSM device.

Skimming
Fraud consisting of altering the stored information (e.g., credit limit) on the magnetic stripe of financial cards.

Smart Card
An integrated circuit card with a microprocessor and memory, formed of a plastic body with a chip (or module) embedded in a special cavity. Also called IC card, chip card or memory card (for certain types). A card capable of calculations.

Symmetric Key Cryptography
Cryptographic processes in which encryption and decryption rely on the same secret key.

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Taggent (Tag Agent)
It is generally a microscopic substance placed in a material for secure authentication of goods.

Tags
Packages other than bank-card sized plastic cards, such as keys, which contain an integrated circuit chip. Term for a transponder commonly used by AIM. A contactless electronic device that can communicate with a reader by means of a radio frequency signal. A tag is not really a “Smart Card” but rather a “smart device.”

Tamper Resistance
Methods used may include automatic erasure of sensitive information, automatic shutdown, and automatic physical locking.

Telephone Card
A card that can be utilized for the payment of telephone calls. This card may be a prepaid card, a credit card, or one that adds the cost of the call to the standard telephone bill.

Terminal
Any device that can communicate with a Smart Card (e.g., reader, coupler). Certain terminals can operate in stand-alone mode, while others must be connected to a central information system to access an application.

Third Party Administration
Administration of a group plan by a person or organization other than the carrier or insurer.

Tipping
Putting a coloured foil on top of embossed characters of a card. This is done to make the characters easier to read and for cosmetic purposes.

Track
In magnetic stripe and optical cards, the physical band within the active area where data are sequentially stored. Regular magnetic stripe cards have three tracks. Optical cards may have more than 2,500 tracks.

Transaction
A business or payment event for the exchange of value for goods or services.

Transponder
A radio or radar transmitter-receiver activated for transmission by reception of a predetermined signal. Transponders are active, battery powered, or passive, powered by the RF signals sent from the interrogator or reader.

Travel and Entertainment Card (T&E Card)
A card issued primarily for travel and entertainment expense activity by organizations and their employees.

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U

UML (Unified Modeling Language)
A language used for modeling object-oriented systems. UML is particularly well suited for projects in C++ and Java.

URL (Uniform Resource Locator)
An address in a standard format that identified files on the Internet (usually beginning with http://). The most common way to access a URL is with a browser.

User Authentication
Procedure to demonstrate the identity or privileges of a user. Biometric techniques establish the user ID; both ID and privileges are established by encryption techniques.

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VAS (Value-Added Service)
Services offered to telecom customers extending beyond the scope of voice transmission. See “GSM.”

Verify
A process step after the magnetic stripe has been applied to the card but before packaging where the stripe is run through a verifier which writes the card completely, reads it, and then erases it to make sure that the stripe can hold information at the time of embossing. This equipment also cleans the card of any foreign material that may have been deposited on the magnetic stripe during manufacture.

Visa Open Platform
A comprehensive system architecture allowing fast development of globally interoperable Smart Card systems. “Open Platform” is a variant of this architecture that is not restricted to the banking industry.

VOIP (Voice Over Internet Protocol)
A technology for transmitting ordinary telephone calls over the Internet.

Volatile Memory
A memory device (e.g., RAM) that does not retain stored information when power is switched off. See “Non-Volatile.”

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Wafer
A disc of semiconductor material. The chips used in Smart Cards are delivered to the card maker in wafers.

Watermark
A translucent design impressed on paper and plastic during manufacture that is visible when the paper is held to light.

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XML (Extensible Markup Language)
A specialized markup language that can be used to define many different document types, each of which uses its own element type names.

XOR
The XOR algorithm is a very simple form of encryption that offers little protection against intrusion.

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Z

Zones
Areas of integrated circuit storage designated for free access, specific applications that may each have a different level of access.