JOHN Mccrindl Federal Reserve Bank Exhibit 1019-000001 A17500 758982 TK 7895 .862 M37 1990 L"Lccrindle, J

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JOHN Mccrindl Federal Reserve Bank Exhibit 1019-000001 A17500 758982 TK 7895 .862 M37 1990 L JOHN McCRINDL Federal Reserve Bank Exhibit 1019-000001 A17500 758982 TK 7895 .862 M37 1990 l"lcCrindle, J. A. Smart cards SPRINGFIELD TECHNICAL - - --- - COMMUNITY COLLEGE STCC LIBRARY LIBRARY lllllllllllll\11111111111111111111111111111111111111111111111111111111 A17500758982 Please return Library Materials on time. DEC 10 1996 Federal Reserve Bank Exhibit 1019-000002 Smart Cards IFS Federal Reserve Bank Exhibit 1019-000003 SMART CARDS John McCrindle IFS Ltd, UK Springer-Verlag Berlin· Heidelberg· New York London· Paris· Tokyo Federal Reserve Bank Exhibit 1019-000004 British Library Cataloguing in Publication Data McCrindle, John Smart cards. 1. Smart cards I. Title 004.56 ISBN 1-85423-001-8 IFS Publications ISBN 3-540-512 56-X Springer-Verlag Berlin Heidelberg New York Tokyo ISBN 0-387-512 56-X Springer-Verlag New York Heidelberg Berlin Tokyo © 1990 IFS Ltd, Wolseley Road, Wolseley Business Park, Kempston, Bedford MK42 7PW, UK and Springer-Verlag Berlin Heidelberg New York Tokyo © GEC-Marconi Ltd. This work is protected by copyright. The rights covered by this are reserved, in particular those of translating, reprinting, radio broadcasting, reproduction by photo-mechanical or similar means as well as the storage and evaluation in data processing installations even if only extracts are used. Should individual copies for commercial purposes be made with written consent of the publishers then a remittance shall be given to the publishers in accordance with §54, Para 2, of the copyright law. The publishers will provide information on the amount of this remittance. Phototypeset by Fotographics (Bedford) Ltd Printed by Short Run Press Ltd, Exeter Federal Reserve Bank Exhibit 1019-000005 c-r·K ~, S (r Dedicated to my wife Jennie and children Mary and Michael Federal Reserve Bank Exhibit 1019-000006 Preface It is little more than forty years since the first computers were produced. These machines each filled a room, weighed tens of tons, contained numerous parts and hundreds of miles of wiring. Little did people realise at that time that one day computers would be reduced in size to less than a square centimetre, be manufactured in millions, be embedded in plastic cards and be able to be carried around by every one of us. A computer in your pocket, costing only a few pounds was then only in the minds of the science fiction writer. Today such an idea has become a reality with the advent of the smart card-a computer in a plastic credit card type package. As a portable, very secure, low cost, 'intelligent' device, capable of solving mathematical problems and manipulating and storing data, this small piece of plastic only_O. 76 mm thick, containing a microcom­ puter, has all of the attributes to make it suitable for a wide range of applications. Already the smart card is in use for telephone call payment, satellite television access, storing medical data, car parking payment, military personnel records, financial transactions, identity and many other applications. Some of the applications for which the smart card is being used and will be used require only tens of cards, others require many millions. As the potential of the card is becoming known, trials and real applications are springing up around the world, in countries as far apart as France, Japan, New Zealand, and the USA. Despite the application of smart cards in these and many other countries, the technology is still only at 'the tip of the iceberg' in its growth cycle. It has all the qualities to become one of the biggest commercial products in quantity terms this decade as its potential becomes fully recognised. In writing this book I have endeavoured to cover a broad spectrum of the subject in a manner which I hope will be understandable by the non-technologist. The book has been written to appeal to as many Federal Reserve Bank Exhibit 1019-000007 people as possible, to give them an insight into the technology and to illustrate how the smart card can be applied to the benefit of a business, service organisation and an individual, alike. It is from the ranks of the doctors, administrators, bankers, etc., that the drive to apply the technology will come as much as from the technological fraternity. It is therefore to these people as well as to the technologist that I hope this book will be of use. The book itself can be considered to be in two parts. The first part addresses the technology: fundamental elements of the smart card, types of card, manufacturing process, etc. The second part, from chapter 8 onwards, is aimed at giving the reader an insight into many of the applications of the technology. In order to do this information has been included from a multiplicity of sources as well as from first hand knowledge. In making use of material from technical journals, newspers, etc., I apologise for any inaccuracies that I have perpetuated from the original articles. A glossary of commonly used terms and of useful addresses of suppliers and some users of the technology completes the book. To conclude, I would like to thank a number of people in contributing help and for their comments. In particular I am indebted to Deidre Hollingum and Jack Hollingum who worked closely with me in producing this book and who helped carry out much of the hard work of putting my knowledge of the subject on paper. I would also particularly like to thank Chris Stanford for a number of useful comments on the draft manuscript and for some of the material on the GEC Smart Card. My thanks also to Tony Kirkman for his helpful suggestions; to Rick Jarvis, Dave Sylvester and Neil McDonald for comments on specific chapters of the book and to Sandra Debenham and Eileen Brandon for typing assistance. Also my thanks to Brian Rooks, Editorial Director at IFS Publications for his patience in awaiting the completion of the book and to GEC A very Ltd for permission to publish the book. Last but not least my thanks go to my wife Jennie and children Mary and Michael for their patience and tolerance during the time I spent working on the book rather than spending my time with them. Chelmsford, March 1990 John A. McCrindle Federal Reserve Bank Exhibit 1019-000008 Contents Chapter 1 Introduction 1 Market potential 2 International progress 5 Purpose of this book 7 Chapter 2 Evolutionofthesmartcard 9 The microcomputer chip 9 The magnetic stripe card 14 The merging of the microcomputer chip and cards 15 Chapter 3 Fundamental elements of a smart card 21 Microprocessor 22 Memory 24 Input/output 29 Power source 30 Chapter 4 Types of smart cards 33 Contact smart cards 34 Contactless smart cards 37 Super smart cards 45 Chapter 5 Othertypesofcards 49 Magnetic stripe cards 51 Integrated circuit (IC) memory cards 54 Optical memory cards - Drexler LaserCard 56 Tags 59 Intelligent tokens - NPL token 64 Comparison 67 Federal Reserve Bank Exhibit 1019-000009 Chapter 6 Manufacture, personalisationandissue 69 Design 71 Chip fabrication 74 Embedding the software in ROM 78 Micromodule manufacture 79 Embedding the micromodule 83 Application program development 87 Activation 89 Personalisation and issue 90 Chapter 7 Security features 91 Physical and manufacturing security 93 Personal identification security 95 Communications security 103 Chapter 8 Financial applications 113 Some principal uses 113 Debit and credit cards 113 Electronic cheque 115 Electronic travellers' cheques 115 Electronic cash (electronic purse) 115 Electronic token 117 Corporate cash management services 118 Share dealing 119 Allowances and pensions 119 Some international examples 119 Case studies 122 Chapter 9 Medical applications 139 Some principal uses 140 General medical card 140 Drug issue card 141 Diabetic card 142 Ante-natal card 142 Staff identifier 143 Some international examples 143 Case study 148 Chapter 10 Leisure and travel applications 161 Some principal uses 161 Leisure applications 161 Travel applications 162 Some international examples 163 Case study 166 Federal Reserve Bank Exhibit 1019-000010 Chapter 11 Telecommunications applications 171 Some principal uses 172 Some international examples 173 Case study 174 Chapter 12 Other applications 179 Some principal uses 179 Military applications 179 Industrial applications 182 Automotive applications 183 Airport security application 185 Postal applications 185 The 'town card' 186 Education and employment 186 Some international examples 187 Case study 190 Glossary of terms 201 Appendix Smart card suppliers and users 211 Index 219 Federal Reserve Bank Exhibit 1019-000011 1 INTRODUCTION MART CARDS are likely to appear on a mass scale worldwide in Sthe next ten years and will affect many areas of our lives. Whatis a smart card? To someone accustomed to carrying a credit card or a bank card, a smart card may appear no different. It is the same shape as a conventional plastic card. It may even be embossed and have a magnetic stripe on the back. However, the appearance is deceptive because the smart card is not just another bank card but a new generation of portable computer. Embedded in the card is a microcomputer chip giving it intelligence and a memory capacity far beyond that of today' s magnetic stripe cards. It has as much computing power as the personal computers of the early 1980s. The computer as we know it today has quite a short history, dating from the late 1940s. The first computers were the size of a room, had only a few dedicated applications, cost an enormous amount of money Federal Reserve Bank Exhibit 1019-000012 2 SMART CARDS and the number built could be counted in tens. By the early 1980s a quite powerful computer could fit on a small desk. They were widely used, in large numbers, in industry, commerce and other areas. With prices ranging down to £100 they came within the budget of some households and began to appear in the home.
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