Smart cards are cards with memory in the form of an electronic contact module. Chip is rewritable and allows to read the information in digital form. Reading the information is done by inserting the card into the reader.
A chip has bigger storage than a magnetic stripe so we can save higher amount of information.
Smart cards allow you to record up to 32 KB.
Chip card may be equipped with any type of electronic chip. The most popular modules are: SLE5542 - 256 bytes of capacity and SLE 5528 - 1 Kb of capacity.
Specification of smart cards is described in ISO/EIC 7816.