Smart cards have embedded microprocessor chips that provide an extra layer of security for users. They look like normal credit cards or driver’s licenses, but instead of being a single piece of plastic, they are actually constructed like tiny boxes that contain the microprocessor itself.

Because they don’t utilize magnetic strips like regular credit cards and debit cards do, smart cards cannot be read in the same way that normal cards are. They are read either by physical slots meant for reading chips or through short-range Wi-Fi via near field communication, or NFC.