Migration from Magnetic Stripe to Smart Cards - Part 1

We need to follow the following steps for migration to Smart Cards

1.Enhancements to the card issuing process
2. Enhancements to the card personalization process
3. Enhancements to the systems that handle card transactions


Enhancements to the Card Issuing Process

Existing systems were developed, often many years ago,
to handle the types of data needed for magnetic stripe cards.

Smart cards require considerably more data to be generated,
including cryptographic keys for the cards themselves.

In most instances, changing existing systems represents a major investment of resources.

Enhancements to the Card Personalization Process

Banks generally personalize their cards in one of two ways:
either using an in-house facility or using an external personalization bureau.

The choice is usually based on the size of the cardholder base,
because setting up an in-house facility is an expensive exercise


Enhancements to the Systems that Handle Card Transactions

Systems are in place today for handling a number of magnetic-stripe-based transactions,
such as ATM cash dispensing,
Online card and PIN verification, and
Offline bulk transaction processing.

By using smart cards, there is a need to extend these systems
to handle the transaction verification mechanism used in smart debit and credit cards,
or in the case of electronic purse schemes, like Visa Cash,
to handle the secure loading of e-cash onto the card.