Tài liệu Sách hay về thẻ smartcards docx

Contents
Preface................................................................................................................3
1. Introduction...............................................................................4
2. Smart Card Basic.....................................................................8
2.1 What is smart card........................................................................................8
2.2 History of smart card development..............................................................9
2.3 Different types of smart cards......................................................................9
2.3.1 Memory Cards...........................................................................................9
2.3.2 Contact CPU Cards................................................................................10
2.3.3 Contactless Cards...................................................................................10
2.3.4 Combi-Card.............................................................................................11
2.4 Different standards of smart cards............................................................12
3. Current Smart Card Applications...........................................14
3.1 Electronic payment Applications................................................................14
3.1.1 Electronic Purse......................................................................................14
3.1.2 Stored Value Cards.................................................................................15
3.2 Security and Authentication Applications..................................................15
3.2.1 Cryptographic uses.................................................................................15
3.2.2 Identity card.............................................................................................16
3.2.3 Access control card.................................................................................16
3.2.4 Digital certificate......................................................................................17
3.2.5 Computer login........................................................................................17
3.3 Transportation uses....................................................................................18
3.4 Telecommunication Applications...............................................................18
3.5 HealthCare Applications..............................................................................19
3.6 Loyalty Applications....................................................................................19
4. Technology Aspects of Smart Card.......................................21
4.1 Overview of ISO 7816 Standards ..............................................................21
4.2 Communication Protocol between Terminal and Smart Cards.................22
4.3 Overview of File Systems ...........................................................................26

4.4 Overview of Naming Scheme......................................................................26
4.5 Overview of the Security Architecture........................................................27
4.6 An Example of Smart Card Application : SmartFlow Internet Payment
System............................................................................................................... 28
5. Java Card Programming.........................................................32
6. Building your own smart card application............................36
6.1 Plan the smart card solution.......................................................................36
6.2 Understand the need of smart card............................................................38
6.3 Managing data storage on the card...........................................................39
6.4 Determine the required back end support.................................................43
6.5 Choosing card-side and host-side environment........................................45
6.6 Miscellaneous Tools....................................................................................46
7. Future trend of smart card.....................................................50
7.1 Unification of smart card host-side standards on PC...............................50
7.1.1 Personal Computer/Smart Card standard (PC/SC)................................51
7.1.2 Alternative standard of smart card in PC and Mini-computer (OpenCard
Framework) .....................................................................................................55
7.2 Trends in smart card card-side standards.................................................58
7.2.1 Java inside..............................................................................................58
Guide to Smart Card Technology Page 1
7.2.2 Mondex MULTOS OS.............................................................................61
7.2.3 Microsoft Windows in Smart card...........................................................62
7.2.4 Card OS future........................................................................................64
7.3 Smart card in electronic commerce...........................................................64
7.3.1 Smart Card Payment Protocol................................................................65
7.3.2 Smart card as prepaid and loyalty card..................................................66
7.3.3 Smart card as electronic wallet...............................................................67
7.3.4 Electronic Payment over Mobile Telecommunications...........................67
7.4 Smart card in Internet security...................................................................68
7.4.1 Smart card as Digital ID..........................................................................68

7.4.2 Smart card as Computer access logon key............................................74
7.4.3 Smart card in Intrusion detection System as user-profile holder............75
7.4.4 Biometric authentication..........................................................................77
8. Summaries and Conclusions..................................................78
Glossary......................................................................................82
References..................................................................................91
Appendix.....................................................................................97
A. Price Comparison of different cards and readers.......................................97
B. Resources.................................................................................................101
Collections of Smart Card Books..................................................................101
Collections of General Smart Card Internet Resources................................101
Collections of Java Card Technology on Internet.........................................102
Collections of Smart Card Security Technology on Internet.........................102
Collections of Smart Card Payment Technology on Internet........................103
Collections of Smart Card Vendors...............................................................103
Guide to Smart Card Technology Page 2
Preface
This handbook aims to provide a comprehensive overview of the current state of
the art in smart card software technology development, applications, and future
trends. The information would be useful to IT managers and executives wishing to
explore the possibility of developing smart card applications.
The handbook consists of three sections. The basic concepts of smart cards and
current applications are presented in the first section in layman's language. The
second section gets into some of the technical aspects of smart card internals, and
offers suggestions on smart card development procedures as well as general ideas in
programming smart cards, including the new Java Card. This section is for
programmers and IT managers who would like to go beyond the basic concepts and
get an idea on what it takes to develop smart card applications. Finally, the third
section presents our views on future trends in smart card development framework,
standards and possible applications. A list of useful reference materials is also

included.
The growth of smart card adoption in Asia is increasing rapidly and we believe this
technology will be an important one in the near future. The Cyberspace Center is
working to develop the security, biometric identification, micropayment and other
aspects of smart card technology for use over the Internet. The handbook
summarizes some of our experience in this work.
Many people have contributed to the handbook, especially Ricci Ieong, Andy
Fung, Ivan Leung, Patrick Hung, James Pang and Ronald Chan. Ricci, Ivan, Andy and
Patrick in particular, wrote parts of the handbook.
This document can be accessed online from the Cyberspace Center's home page
. Some chapters are actually better viewed on-line since they
provide URLs directly to sources of additional information.
Finally, I would like to acknowledge the Industry Department of the Hong Kong
SAR for funding the Cyberspace Center. Our objective is to help Hong Kong
industries make more effective use of the Internet to enhance their competitiveness in
the world markets. This and our other handbooks are part of the effort in attaining this
goal. Please visit our web site to learn about some of our other activities.
Samuel Chanson
Director
Cyberspace Center
Guide to Smart Card Technology Page 3
1. INTRODUCTION
Smart card technology has been around for more than 20 years. Since its first
introduction into the market, its main application is for the payphone system. As card
manufacturing cost decreases, smart card usage has expanded. Its use in Asia is
expected to be growing at a much faster pace than in Europe. According to a survey
performed by Ovum Ltd. [Microsoft1998a], the number of smart card units will reach
2.7 billion by 2003. The largest markets will be in prepayment applications, followed
by access control, and electronic cash applications. According to a recent study by
Dataquest [Microsoft1998c], the overall market for memory and microprocessor-

based cards will grow from 544 million units in 1995 to 3.4 billion units by 2001. Of
that figure, microprocessor-based smart cards, which accounted for only 84 million
units in 1995 will grow to 1.2 billion units in 2001.
Based on the report from Hong Kong SAR Government Industry Department on
the Development and Manufacturing Technology of Smart Card [HKSAR1997], Hong
Kong industries have the capability and should participate in development and
manufacturing of smart card IC chips, readers and card operating systems. To
promote this, Hong Kong SAR government has decided to form a Hong Kong Smart
Card Forum. Under this active participation and encouragement from the Hong Kong
SAR Government, smart card development and support will expand in Hong Kong.
Although the Octopus card is relatively new to Hong Kong, smart cards have
already been introduced in Hong Kong for at least two years. These include Mondex
by Hong Kong bank and GSM cards in the mobile phone market. However, using this
powerful and highly secure card on Personal computer (PC) as well as the Internet is
still not common. Many international companies have identified the smart card as one
of the new directions in electronic money and personal identification and
authentication tools.
In May 1996, several companies including Microsoft, Hewlett-Packet and
Schlumberger formed a PC/SC workgroup which aimed at integrating the smart card
with personal computer (PC). This workgroup mainly concentrates on producing a
common smart card and PC interface standards for the smart card and PC software
producers. Many of the interface standards and hierarchy have already been
established. Some of these prototype products are now available on the market.
Moreover, Netscape and Microsoft have also announced that the smart card will
be their new direction in computer security and electronic commerce area. Microsoft
has even published some documents on its role in the smart card market. Although it
will not be a smart card manufacturing company, it has indicated that the smart card
will be a key component in Microsoft Windows 98 and Windows NT 5.0. Together with
Guide to Smart Card Technology Page 4
the latest smart card operating system announcement [Microsoft1998a], Microsoft will

be actively involved in the smart card market. Furthermore, programming modules for
smart cards using Visual C++, Visual J++ and Visual Basic have also been
developed.
The Cyberspace Center believes smart card technology will play a major role in
Internet applications in the future. Therefore, we decided to start evaluating the
available Smart card development tools and study the use of Smart card in Internet
security and electronic commerce. With first-hand information and experience, we will
be able to provide advice and assistance to the Hong Kong Industry.
The smart card is expected to be used in many applications and especially in
personal security related applications such as access control, computer logon, secure
email sending and retrieving services.
The reason for this growth lies in the smart card’s portability and security
characteristics. In addition, as the recent growth of palmtop computers shows, people
are looking for smaller and smaller devices for carrying their data with them. Smart
card provides a good solution for many applications.
Applications are the driving force behind the new smart card market. Many of
these applications have already been implemented, such as prepayment for services,
credit and debit card, loyalty card, and access control card. The most commonly
known example is the prepayment services cards, namely, prepaid phone cards,
transportation cards and parking cards. Based on the e-purse card, people could
perform bank transaction from ATM machines at home or in the bank. With the use of
loyalty cards, companies could store discount information and shopping preferences
of their customers. Using these shopping preferences, companies could design new
strategies for the users. Access control systems to buildings, computers or other
secure areas will soon be handled by a single smart card.
In this handbook, we shall briefly describe what smart card is and how it can be
used in different applications. The aim of this handbook is to provide a business and
executive overview to companies that wish to join the smart card era. This handbook
is divided into 8 chapters classified into 3 sections – Smart card Overview, Smart
card in Details, and Smart card in the Future.

In the first section, basic concepts of smart cards will be described. In chapter 2,
we review the history of smart cards. Then we outline the different types of smart
cards and their standards. Current applications and uses of smart cards are
mentioned in chapter 3.
In the second section, technical aspects of smart card internals as well as
programming tips are briefly described in chapter 4. Because programming and
design methodology for the Java card is different from traditional card programming,
in chapter 5, we describe the basics in Java Card programming. In chapter 6,
procedures of smart card development are given.
Guide to Smart Card Technology Page 5
In the last section of this handbook, the future of smart card development is
presented. Different ideas on future smart card applications are used in formulating a
forecast in chapter 7.
Lastly, we conclude the handbook with a summary of different research, survey
and reports on smart cards. References and glossaries are provided at the end of this
handbook.
We hope that based on our handbook, company executives, technical managers
and software developers would gain knowledge and insight into the emerging smart
card technology and applications.
Guide to Smart Card Technology Page 6
Part I. Smart card
Overview
Guide to Smart Card Technology Page 7
2. SMART CARD BASIC
A smart card is a plastic card with a microprocessor chip embedded in it. The
card looks like a normal credit card except for its metal contact (in contact card only),
but applications performed could be totally different. Other than normal credit card
and bankcard functions, a smart card could act as an electronic wallet where
electronic cash is kept. With the appropriate software, it could also be used as a
secure access control token ranging from door access control to computer

authentication.
The term “smart card” has different meanings in different books [Guthery1998,
Rankl1997] because smart cards have been used in different applications. In this
chapter, we provide our definition of “smart card” to put the subsequent chapters in
context. We also describe the development history of smart cards and depict the
types of card available on market. Finally, descriptions on different smart card
standards, such as ISO and EMV are given at the end of this chapter.
2.1 What is smar t card
In the article “Smart cards: A primer” [DiGiorgio1997a], the smart card is defined
as a “credit card” with a “brain” on it, the brain being a small embedded computer
chip. Because of this “embedded brain”, smart card is also known as chip or
integrated circuit (IC) card. Some types of smart card may have a microprocessor
embedded, while others may only have a non-volatile memory content included. In
general, a plastic card with a chip embedded inside can be considered as a smart
card.
In either type of smart card, the storage capacity of its memory content is much
larger than that in magnetic stripe cards. The total storage capacity of a magnetic
stripe card is 125 bytes while the typical storage capacity of a smart card ranges from
1K bytes to 64K bytes. In other words, the memory content of a large capacity smart
card can hold the data content of more than 500 magnetic stripe cards.
Obviously, large storage capacity is one of the advantages in using smart card,
but the single-most important feature of smart card consists of the fact that their
stored data can be protected against unauthorized access and tampering. Inside a
smart card, access to the memory content is controlled by a secure logic circuit within
the chip. As access to data can only be performed via a serial interface supervised by
the operating system and the secure logic system, confidential data written onto the
card is prevented from unauthorized external access. This secret data can only be
processed internally by the microprocessor.
Due to the high security level of smart cards and its off-line nature, it is extremely
difficult to "hack" the value off a card, or otherwise put unauthorized information on

Guide to Smart Card Technology Page 8
the card. Because it is hard to get the data without authorization, and because it fits in
one’s pocket, a smart card is uniquely appropriate for secure and convenient data
storage. Without permission of the card holder, data could not be captured or
modified. Therefore, smart card could further enhance the data privacy of user.
Therefore, smart card is not only a data store, but also a programmable, portable,
tamper-resistant memory storage. Microsoft considers smart card as an extension of
a personal computer and the key component of the public-key infrastructure in
Microsoft Windows 98 and 2000 (previous known as Windows NT 5.0)
[Microsoft1997a].
2.2 Histor y of smar t card
development
A card embedded with a microprocessor was first invented by 2 German
engineers in 1967. It was not publicized until Roland Moreno, a French journalist,
announced the Smart Card patent in France in 1974 [Rankl1997]. With the advances
in microprocessor manufacturing technology, the development cost of the smart card
has been greatly reduced. In 1984, a breakthrough was achieved when French Postal
and Telecommunications services (PTT) successfully carried out a field trial with
telephone cards. Since then, smart cards are no longer tied to the traditional
bankcard market even though the phone card market is still the largest market of
smart cards in 1997.
Due to the establishment of the ISO-7816 specification in 1987 (a worldwide smart
card interface standard), the smart card format is now standardized. Nowadays,
smart cards from different vendors could communicate with the host machine using a
common set of language.
2.3 Different types of smar t cards
According to the definitions of “smart card” in the Smart card technology
frequently asked questions list [Priisalu1995], the word smart card has three different
meanings:
• IC card with ISO 7816 interface

• Processor IC card
• Personal identity token containing ICs
Basically, based on their physical characteristics, IC cards can be categorized into
4 main types, memory card, contact CPU card, contactless card and combi card.
2.3.1 Memory Cards
A memory card is a card with only memory and access logic onboard. Similar to
the magnetic stripe card, a memory card can only be used for data storage. No data
Guide to Smart Card Technology Page 9
processing capability should be expected. Without the on-board CPU, memory cards
use a synchronous communication mechanism between the reader and the card
where the communication channel is always under the direct control of the card
reader. Data stored on the card can be retrieved with an appropriate command to the
card.
In traditional memory cards, no security control logic is included. Therefore,
unauthorized access to the memory content on the card could not be prevented.
While in current memory cards, with the security control logic programmed on the
card, access to the protection zone is restricted to users with the proper password
only.
2.3.2 Contact CPU Cards
A more sophisticated version of smart card is the contact CPU card. A
microprocessor is embedded in the card. With this real “brain”, program stored inside
the chip can be executed. Inside the same chip, there are four other functional blocks:
the mask-ROM, Non-volatile memory, RAM and I/O port [HKSAR1997, Rankl1997].
Except for the microprocessor unit, a memory card contains almost all
components that are included in a contact CPU card. Both of them consist of Non-
volatile memory, RAM, ROM and I/O unit. Based on ISO 7816 specifications, the
external appearance of these contact smart cards is exactly the same. The only
difference is the existence of the CPU and the use of ROM. In the CPU card, ROM is
masked with the chip’s operating system which executes the commands issued by
the terminal, and returns the corresponding results. Data and application program

codes are stored in the non-volatile memory, usually EEPROM, which could be
modified after the card manufacturing stage.
One of the main features of a CPU card is security. In fact, contact CPU card has
been mainly adopted for secure data transaction. If a user could not successfully
authenticate him/herself to the CPU, data kept on the card could not be retrieved.
Therefore, even when a smart card is lost, the data stored inside the card will not be
exposed if the data is properly stored [Rankl1997]. Also, as a secure portable
computer, a CPU card can process any internal data securely and outputs the
calculated result to the terminal.
2.3.3 Contactless Cards
Even though contact CPU smart card is more secure than memory card, it may
not be suitable for all kinds of applications, especially where massive transactions are
involved, such as transportation uses. Because in public transport uses, personal
data must be captured by the reader within a short period of time, contact smart card
which requires the user to insert the card to the reader before the data can be
captured from the card would not be a suitable choice. With the use of radio
frequency, the contactless smart card can transmit user data from a fairly long
Guide to Smart Card Technology Page 1 0
distance within a short activation period. The card holder would not have to insert the
card into the reader. The whole transaction process could be performed without
removing the card from the user’s wallet.
Contactless smart cards use a technology that enables card readers to provide
power for transactions and communications without making physical contact with the
cards. Usually electromagnetic signal is used for communication between the card
and the reader. The power necessary to run the chip on the card could either be
supplied by the battery embedded in the card or transmitted at microwave
frequencies from the reader onto the card.
Contactless card is highly suitable for large quantity of card access and data
transaction. However, contactless smart card has not been standardized. There are
about 16 different contactless card technologies and card types in the market [ADE].

Each of these cards has its specific advantages, but they may not be compatible with
each other. Nevertheless, because of its high production cost and the technology is
relatively new, this type of cards has not been widely adopted.
2.3.4 Combi-Card
At the current stage, contact and contactless smart cards are using two different
communication protocols and development processes. Both cards have their
advantages and disadvantages. Contact smart cards have higher level of security and
readily-available infrastructure, while contactless smart cards provide a more efficient
and convenient transaction environment. In order to provide customers with the
advantages of these two cards, two methods could be employed. The first method is
to build a hybrid card reader, which could understand the protocols of both types of
cards. The second method is to create a card that combines the contact functions
with the contactless functions. Because the manufacturing cost of the hybrid reader is
very expensive, the later solution is usually chosen.
Sometimes, the term “combi card” is being misused by manufacturers. In general,
there are two types of combine contact-contactless smart cards, namely the hybrid
card and the combi card. Both cards have contact and contactless parts embedded
together in the plastic card. However, in the hybrid card, the contact IC chip and
contactless chip are separate modules. No electrical connections have been included
for communications between the two chips. These two modules can be considered as
separate but co-existing chips on the same card. While in the combi card, the contact
and contactless chips could communicate between themselves, thus giving the combi
card the capability to talk with external environment via either the contact or
contactless method.
As the combi card possess the advantages of both contact and contactless cards,
the only reason that is hindering its acceptance is cost. When the cost and technical
obstacles are overcome, combi cards will become a popular smart card solution.
Guide to Smart Card Technology Page 1 1
2.4 Different standards of smar t
cards

Throughout the history of smart card development, various standards have been
established for resolving the interoperability problem. The very first standard is the
ISO 7816 smart card standard published by the International Organization for
Standardization (ISO) in 1987. Before this, card vendors and manufacturers
developed their own proprietary cards and readers which could not interoperate. With
the ISO standard, smart cards could communicate using the same protocol. The
physical appearance and dimensions of a card is also fixed. The meaning and
location of the contacts, the protocols and contents of the high and low level
messages exchanged with the IC card are all standardized. This ensures that card
manufactured and issued by one company can be accepted by a device from other
companies. Because this specification is important to card programming
development, details of this standard is given in Chapter 4, “Technical Aspects of
smart card”, of this handbook.
Two other important standards in this area are EMV (Europay, Mastercard and
Visa) and GSM (Global Standard for Mobile Communications). EMV standard is for
debit/credit cards where major international financial institutions Visa, Mastercard and
Europay are involved. It started in 1993 and was finalized in 1996 [HKSAR1997]. This
standard covers the electromechanical, protocol, data elements and instruction parts
together with the transactions involving bank microprocessor smart cards. The goal of
the EMV specification is for payment systems to share a common Point of Sales
(POS) Terminal, as they do for magnetic stripe applications. Because the magnetic
stripe-based banking card would soon be replaced by the smart card, this standard
has to be established to ensure that the new smart card based banking card would be
compatible with the bank transaction system. Based on this specification, all bank-
related smart card solutions would be compatible with one another as well as the
previous magnetic stripe card solution. Terminal manufacturers could develop and
modify their own sets of API in EMV standard for their terminals, so these terminals
could be used in different payment systems. Credit, debit, electronic purse and loyalty
functions could be processed on these EMV-compliant terminals. With the flexibility
provided by the EMV standard, banks are allowed to add their own options and

special requirements in the smart card payment system.
The GSM standard is one of the most important smart card and digital mobile
telecommunication standards. GSM specification started in 1982 under CEPT
(Conference Europeenne des Postes et Telecommunications) and was later
continued by ETSI (European Telecommunications Standards Institute). Originally,
this specification is designated for the mobile phone network. However, when the
smart card is used in the mobile phone system as the Subscriber Identification
Module (SIM), parts of the GSM specification becomes a smart card standard. This
part of the GSM specification started in January 1988 by the Subscriber Identification
Module Expert Group (SIMEG).
Guide to Smart Card Technology Page 1 2
Within a GSM network, all GSM subscribers would be issued a SIM card which
can be viewed as the subscriber’s key into the network. The size of a SIM card is
fixed to be either the normal credit card or mini card size. Because this card is used
for handling the GSM network functions, a rather high performance microcontroller (a
16-bit microprocessor) is used and the EEPROM memory is dedicated for storing the
application data, including the network parameters and subscriber data.
The GSM specification is divided into two sections. The first section describes the
general functional characteristics, while the second section deals with the interface
description and logical structures of a SIM card. Details of this specification are given
in [Scourias].
Before the smart card could be widely adopted by the market, one or more
standardized card development environment is needed. Currently, four significant
smart card standards have been recently established in the smart card industry, they
are PC/SC, OpenCard Framework, JavaCard and MULTOS and all of them are
compatible to the ISO smart card standard. Details of these specifications are briefly
mentioned in chapters 5 and 7 of this handbook while other specifications could be
found in [CityU1997].
Guide to Smart Card Technology Page 1 3
3. CURRENT SMART CARD

APPLICATIONS
With the rapid expansion of Internet technology and electronic commerce, smart
cards are now more widely accepted in the commercial market as stored-value and
secure storage cards. Moreover, it has also been widely used as an identity card. For
instance, in City University of Hong Kong, the old student/staff cards have been
replaced by the hybrid-card based identity cards. This identity card can be used for
normal access control as well as electronic payment.
The smart card has also been used in transportation such as the Octopus card
which has been adopted by the MTRC and KCRC to replace of the old Magnetic
stripe card. Medical record can also be stored in the smart card. This enables critical
information of the patient to be retrieved whenever it is required. With the help of
smart card technology, many secure data such as the computer login name and
password can also be kept, so user need not remember a large number of
passwords.
In this chapter, we shall briefly describe some current applications of smart cards.
These applications can be classified into 6 main categories: Electronic Payment,
Security and Authentication, Transportation, Telecommunications, Loyalty Program
and Health Care Applications.
3.1 Electronic payment Applications
3.1.1 Electronic Purse
The Electronic Purse is also known as electronic cash. Funds can be loaded onto
a card for use as cash. The electronic cash can be used for small purchases without
necessarily requiring the authorization of a PIN. The card is credited from the
cardholder’s bank account or some other ways. When it is used to purchase goods or
services, electronic value is deducted from the card and transferred to the retailer’s
account. Similar to a real wallet, the cardholder could credit his/her card at the bank
any time when required.
Electronic cash transactions do not usually require the use of a PIN. This speeds
up the transactions but the electronic cash on the card is then vulnerable like
conventional cash. The amounts involved, fortunately, are usually small, so loses will

not be significant. Widespread adoption of electronic cash will reduce the costs to
banks and retailers in handling large quantities of cash.
Guide to Smart Card Technology Page 1 4
Since 1994, there has been significant development of Intersector electronic purse
applications in Europe which has been extended to outside of Europe. Several global
card projects have been developed for this purpose, such as Proton card by Banksys,
VisaCash by Visa International and Mondex card by Mastercard [Bull1998]. These
have all been adopted by shops from all over the world.
3.1.2 Stored Value Cards
Another use of smart cards in electronic commerce is Electronic token. It is an
example of the stored-value card. The principle is that some memory in the smart
card is set aside to store electronic tokens or electronic tickets. A smart card can
store tokens for different services and each of the tokens can be refilled, depending
on the types of the memory card. This allows the cost to be distributed over a number
of services and over a much longer life span.
For example, the card could be used to pay for gas and instead of putting coins in
a parking meter. Consumers load up the card from a vending machine. The card can
then be used to operate the meters. One advantage of this system is that collections
of coins would no longer be necessary. This would reduce the operation overhead
and eliminate theft. This would also benefit the consumer as tokens could be bought
and stored in the card in advance so it is not necessary to carry many heavy coins
around. It is also possible that the card could monitor patterns of use and return the
information to the merchant as well as the consumer, so better shopping model could
be derived [McCrindle1990].
3.2 Security and Authentication
Applications
3.2.1 Cryptographic uses
From the point-of-view of the supplier and system operator, the main requirement
of almost all machine-readable card systems is to ensure that the card presented is
valid and the cardholder is indeed the person entitled to use that particular card. To

verify the cardholder’s identity, users are required to enter their PIN code (personal
identification number). This PIN code is kept in the card rather than on the terminals
or host machines.
Identification and authentication procedures take place at the card terminal. One
of the problems is to ensure that the card furnishes some sort of machine-readable
authenticity criterion. This can be solved by the use of encrypted communications
between the card and terminal. It is well known that encryption can be used to ensure
secrecy of messages sent and also to authenticate messages.
In order to perform the encryption procedure, the cryptographic smart cards must
have the following properties:
Guide to Smart Card Technology Page 1 5
• The cards must have sufficient computational power to run the cryptographic
algorithms.
• The cryptographic algorithms must be theoretically secure. This means that it
is not possible to derive the secret key from the corresponding texts.
• The smart cards must be physically secure. It should not be possible to
extract the secret key from the card’s memory.
Provided these conditions are met, and with advances in card microcontroller
technology, the microprocessor-based smart card can be made to meet the required
security level [Chaum1989].
For instance, Verisign and Schlumberger have developed the use of Cryptoflex
smart card for carrying a Verisign Class 1 Digital ID [Verisign9701]. Cryptoflex card is
the first cryptographic smart card in the industry, which is designed based on the
PC/SC specifications. This enables the use of smart card for portable Internet access
with Microsoft Internet Explorer 3.0 at all sites accepting Verisign Digital IDs.
In Michigan University, the Cyberflex card has been used for storing Kerberos
keys in a secure login project [Michgan9701].
3.2.2 Identity card
The identification of an individual is one of the most complex processes in the field
of Information Technology. It requires both the individual to identify himself and for the

system to recognize the incoming connection is generated by a legal user. The
system then accepts responsibility for allowing all subsequent actions, sage in the
knowledge that the user has authorization to do whatever he is asking of the system.
If a smart card is used, the information stored on the card can be verified locally
against a ‘password’ or PIN before connection is made to the host. This prevents the
password from being eavesdropped by perpetrators on the Internet.
Some of the smart cards will have personal data stored on the card. For example,
the cardholder’s name, ID number, and date of birth [Devargas1992].
3.2.3 Access control card
The most common devices used to control access to private areas where
sensitive work is being carried out or where data is held, are keys, badges and
magnetic cards. These all have the same basic disadvantages: they can easily be
duplicated and when stolen or passed on, they can allow entry by an unauthorized
person. The smart card overcomes these weaknesses by being very difficult to be
reproduced and capable of storing digitized personal characteristics. With suitable
verification equipment, this data can be used at the point of entry to identify whether
the user is the authorized cardholder. The card can also be individually personalized
to allow access to limited facilities, depending on the holder’s security clearance. A
log of the holder’s movements, through a security system, can be stored on the card
as a security audit trail [McCrindle1990].
Guide to Smart Card Technology Page 1 6
The card could contain information on the user’s privileges (i.e. access to secure
areas of the building, automatic vehicle identification at entrances to company car
parks, etc.) and time restrictions. All information are checked on the card itself.
Access to different areas of the building can be distinguished by different PINs.
Furthermore it can also track the user’s movement around the building
[Devargas1992].
3.2.4 Digital certificate
The most important security measures we encounter in our daily business have
nothing to do with locks and guards. A combination of a signed message and the use

of public key cryptosystem, so called digital signature, are typically used.
A digitally signed message containing a public key is called a certificate. In
addition to a public key, a certificate typically contains a name, address, and other
information describing the holder of the corresponding secret key. All of these carry
the digital signature of a registry service that records public keys for all members of
the community. To become a member of this community, a subscriber must do two
things:
• Provide the directory service with a public key and the associated
identification information so that other people will be able to verify his/her
signature.
• Obtain the public key of the directory service so that he/she can verify other
people’s signatures.
Because certificates are extremely tamper resistant, the authenticity of a certificate is
a property of the certificate itself, rather than of the authenticity of the channel over
which it was received. This important property allows certificates to be employed in
very much the same way as a passport. The border police expect to see your
passport and in most cases count on the passport’s tamper resistance to guarantee
its authenticity. Because of the fragility of paper credentials, however, there are
circumstances in which this is not considered adequate. In making a classified visit to
a military installation, for example, no badge or letter of introduction by itself is
sufficient. Prior arrangements must have been made using channels maintained for
the purpose. Because public key certificates are more secure than any paper
document, they can be safely authenticated by direct signature checking and no
trusted directory is needed.
3.2.5 Computer login
Access to the Computer room and its services can be controlled by the smart
card. In terms of network access, smart card can authenticate the user to the host.
Furthermore, depending on the environment being protected the network access
card can also perform the following functions:
• Manipulation of different authentication codes for different levels of security.

Guide to Smart Card Technology Page 1 7
• Use of biometric techniques as an added security measure.
• Maintaining an audit trail of failures and attempted violations.
Meanwhile, in terms of access to the computer room itself, PIN checking can be
done on the card without the need for hard wiring the access points to a central
computer.
The identification of a user is usually done by means of a (Personal Identification
Number) PIN. The PIN is verified by the microcomputer of the card with the PIN
stored in its RAM. If the comparison is negative, the CPU will refuse to work. The chip
also keeps tack of the number of consecutive wrong PIN entries. If this number
reaches a pre-set threshold, the card blocks itself against any further use.
3.3 Transportation uses
The smart card can act as electronic money for car drivers who would need to
pay a fee before being able to use a road or tunnel. It would then contain a balance
that can be increased at payment stations or in the pre-paid process, and is
decreased for each use.
If privacy is not an issue (i.e. the driver does not care if he is identified as using a
particular stretch of motorway at a particular point in time), then the card could be
linked to a bank debiting system as a debit card. Besides, the card could also act as a
credit card.
Another example is the Octopus card. This service aims at reducing the amount of
cash handled by the service provider and also increasing management information.
This information would be invaluable in giving the customer the right service at the
right time.
Each individual would possess a reloadable card that could either be paid directly
(immediately) or as a credit payment based system where monthly settlement would
be required. If the card has a positive balance, the card holder could use the card in
any of the transport services by simply inserting the card into the card-reader which
would be either on the bus or at the entrance to the MTR station.
If the travel charge is different for different zones, then the card would need to be

used at the entrance of the bus or station and also at the exit. This process would
then calculate the amount owed for a certain journey [Devargas1992].
3.4 Telecommunication Applications
Telecommunication is one of the largest markets for smart card applications. In
1997, payphone cards occupy the largest share of the smart card market. Over 70%
of the smart cards are issued as payphone cards [CardTech1997] and this will
continue be the largest market in at least the next 3 years.
Guide to Smart Card Technology Page 1 8
Since 1988, smart card has become an essential component in cellular phone
systems. Network data, subscriber’s information and all mobile network critical data
are kept inside the card. With this card, subscribers could make calls from any
portable telephone. Moreover, through the IC card, any calls through the mobile
phone could be encrypted, and thus ensure privacy. In the future, more and more
value-added services, such as electronic banking, could be supported by using this
microprocessor card. Examples can be found in chapter 7.
3.5 HealthCare Applications
Due to the level of security provided for data storage, IC cards offer a new
perspective for healthcare applications. Medical applications of smart cards can be
used for storing information including personal data, insurance policy, emergency
medical information, hospital admission data and recent medical records. Numerous
national hospitals in France, Germany and even Hong Kong have already started to
implement this kind of healthcare card.
With the microcontroller on-board, smart cards could be used for managing the
levels of information authorized for different users similar to a workflow control
system. Doctors would be able to access the medical record from the patient’s card,
while chemists could make use of the prescription information stored on the card for
preparing the medical treatment. Emergency data kept on the patient’s card, which
includes the cardholder’s identity, persons to contact in case of accident and special
illness details, can be used for saving the patient’s life. In some countries, medical
insurance is required for hospital payment. With the insurance records stored in the

patient’s card, the administrative procedures are simplified.
3.6 Loyalty Applications
Loyalty program is another important application of smart cards in the shopping
model. The preferred customer status together with detailed information on shopping
habits is stored and processed on the smart card. With this information, merchants
could derive better shopping model or tailor-make personalized customer shopping
profiles. In addition, this shopping habit profile is kept in the customer’s card;
therefore, his/her shopping record could be kept confidential from unauthorized
access.
As an extension to the loyalty application, stored value functions could be added.
In current pay television systems, users’ preferences are kept together with the
electronic payment scheme. Users would not have to set their preferences each time
they use the television system. As this card will also be used as the key to the
television, users would not be permitted to use the television box unless they have
paid their television fee. So sufficient security and convenient television usage could
be guaranteed.
Guide to Smart Card Technology Page 1 9
Part II. Smart card
in details
Guide to Smart Card Technology Page 2 0
4. TECHNOLOGY ASPECTS
OF SMART CARD
From the technical point of view, smart cards can be classified into two main
types: programmable and non-programmable. A smart card application programmer
can either put the application logic on the terminal, the card (if it is a programmable
card) or both. We can view the non-programmable smart cards as external storage,
just like a floppy disk, with security features. Therefore, we can design to store
certain portable information on the smart card and the application logic is allocated on
the terminal side. On the other hand, the programmable smart card, such as the Java
card, allows the application logic (intelligence) to be partially built on the smart card.

In this chapter, we are going to describe the overview concepts of smart card
programming.
4.1 Overview of ISO 7816 Standards
ISO 7816 is the interface standard for smart card. The following sub-parts are of
interest to the smart card application programmer:
ISO 7816-1: Physical characteristics of cards
Defines the dimensions of cards and the physical constraints.
ISO 7816-2: Dimensions and locations of the contacts
Defines the dimensions, location and role of the electrical contacts (the power VCC,
the ground GND, the clock CLK, the reset RST, the I/O port I/O, the programming
power VPP and two additional reserved contacts for future use) on the microchip.
ISO 7816-3: Electronic signals and transmission protocols
Defines the characteristics of the electronic signals exchanged between the card and
terminal and two communication protocols: T=0 (Asynchronous half duplex character
transmission protocol) and T=1 (Asynchronous half duplex block transmission
protocol)
ISO 7816-4: Inter-industry commands for interchange
Defines a set of standard commands and a hierarchical file system structure.
ISO 7816-5: Numbering system and registration procedure for application
identifiers
Defines a unique card application name.
ISO 7816-7: Inter-industry commands for Structured Card Query Language
(SCQL)
Defines a set of commands to access smart card content and relational database
structure.
Guide to Smart Card Technology Page 2 1
Other parts are not covered here since smart card application programmers do
not need to know them and also some of them are still under preparation. We shall
discuss ISO 7816-3, ISO 7816-4 and ISO 7816-5 below.
4.2 Communication Protocol

between Ter minal and Smar t
Cards
The communication protocols between the terminal and the smart card are
described in ISO 7816-3 (Transport Protocol) and ISO 7816-4 (Application Protocol).
These two protocols are briefly described in this section.
The terminal initializes a smart card by transmitting a signal to the reset (RST)
contact of the card. The card will response by transmitting a string of bytes to the
terminal called the ATR (Answer-To-Reset). This string of bytes consists of two parts:
the protocol bytes provide information about the communication protocols supported
by the card and the historical bytes provide information about the type of card. An
example is given for the ATR of ACS ACOS1 smart card (which is a type of memory
card of Advanced Card System company):
Protocol Bytes Historical Bytes
3B BE 11 00 00 41 01 10 04 00 12 00 00 00 00 00 02 90 00 (in hexidecimal)
The details of ATR are described in the ISO 7816-3 standard. We briefly describe
the first three bytes in the protocol bytes here. The bytes “3B” stand for the method of
bit transfer. “BE” means that there is additional information (14 historical bytes). The
bytes “11” describe the information of clock speed and bit transfer rate. The historical
bytes give information about the references and versions of the card’s chip and
operating system.
After the ATR was transmitted, the terminal can communicate with the smart card
by sending commands. The commands are encapsulated in packets. These packets
are called Transport Protocol Data Unit (TPDU). Each packet begins with the
following five bytes (Header) followed by a number of bytes for the Data field if
needed:
CLA INS P1 P2 P3

TPDU Header

Guide to Smart Card Technology Page 2 2

The class byte (CLA): A class of instructions. The values of some class bytes can
have a specific meaning pertaining to a certain class of commands. For example, the
class byte of ACS ACOS1 smart card is 80
H
and Gemplus 32 bit Java Card is A8
H
.
The instruction byte (INS): A particular instruction. For example, the SUBMIT CODE
instruction of ACS ACOS1 smart card is 20
H
.
The parameter bytes (P1 & P2): The parameters for the instruction. For example, the
parameters of SUBMIT PIN command are P1 = 06
H
and P2 = 00
H
.
The parameter byte (P3): The number of data bytes which are transmitted with the
command during the exchange. This byte may indicate the number of bytes that the
terminal will send to the card (Lc) or the number of bytes that the terminal expects to
receive from the card (Le). For example, the P3 in the SUBMIT PIN CODE instruction
is 08
H
since the PIN (Personal Identification Number) code in ACS ACOS1 smart card
is 8 bytes long.
After receiving the header, the terminal waits for a procedure byte from the smart
card:
• An acknowledge byte: Based on the INS byte, it may indicate the terminal should
send data or expect to receive data. Based on the acknowledge byte, the
application level protocol APDU (Application Protocol Data Units) command is

formed with the TPDU header. There are four possible formats of the APDU
command:
1. No data bytes exchange required.
CLA INS P1 P2
Format 1 of APDU command
2. Only terminal receive data bytes from smart card (Le).
CLA INS P1 P2 Le
Format 2 of APDU command
3. Only terminal sends data bytes to smart card (Lc).
CLA INS P1 P2 Lc Data
Format 3 of APDU command
4. Terminal sends data bytes to smart card (Lc) and also receives data bytes from
smart card (Le).
CLA INS P1 P2 Lc Data Le
Format 4 of APDU command
Guide to Smart Card Technology Page 2 3
If Le = 0, then the number of bytes expected is unspecified and must be provided by
the smart card (maximum 256 bytes). When the data bytes have been transmitted,
the terminal expects a new procedure byte.
• A NUL byte (value 0x60) : The smart card requests more processing time. The
terminal needs to reset its card time-out timer and wait for another procedure
byte.
• A status word (SW1 and SW2) : The status word ends the command. It is
standard in ISO-7816-4. Here is a subset of common status words:
SW1 SW2
4.2.1.1.1 Meaning
90 00 O.K.
67 00 Wrong P3
69 66 Command not available
6A 86 P1-P2 incorrect

6D 00 Unknown INS
6E 00 Invalid CLA
Based on SW1 and SW2, an APDU will be returned in the following format. The
Data part is optional, because some APDU commands do not require any data from
the smart card as in cases 1 and 3 above.

Data SW1 SW2
Format of response APDU
The communication between the terminal and smart card (as shown in figure 4-1)
includes a command APDU which is sent by the terminal to the smart card and a
response APDU by the smart card to the terminal based on the result of the command
APDU. These exchanges are all encoded in transport protocol level TPDUs. A
command/response exchange at the application protocol level APDU may require
more than one TPDU exchange.
Guide to Smart Card Technology Page 2 4
Figure 4-1. Communication protocol between terminal and smart card.
Here is an example of command/response APDU between the ACS ACOS1 smart
card and a terminal. The command is used by the smart card to submit the PIN code
for authentication to the terminal.
SUBMIT PIN:
To submit a secret code (PIN) to the smart catd.
Command APDU:
CLA INS P1 P2 P3 DATA
80 20 6 00 08 PIN Code or DES(PIN Code,#Ks)
PIN Code Eight bytes PIN Code
DES(Code,#Ks) Eight bytes PIN Code encrypted with Session Key (Ks)
Response APDU:
4.2.1.2 SW1 SW2
Status
Specific Status Codes:

SW1 SW2 Meaning
63 Cn Wrong Code; n = remaining number of re-tries
69 83 The specified Code is locked
69 85 Mutual Authentication not successfully completed prior to
the SUBMIT PIN CODE command
In the SUBMIT PIN procedure, the terminal can either submit the PIN code in plain
text format (without encryption) or in DES encrypted format if the corresponding
option bit DES in the Security Option Register is set.
Guide to Smart Card Technology Page 2 5