Smart cards are small electronic devices about the size of a credit card that contain memory and an integrated circuit chip. They provide identification, authentication, and data storage capabilities. Smart cards were invented in 1968 and come in various types including embossed, magnetic stripe, memory, optical, microprocessor, and contactless cards. They have wide-ranging applications including use in payphones, banking, retail, electronic purse, health care, ID verification, and access control. Advantages of smart cards include flexibility, security, data integrity, and ease of use while disadvantages include fees, liability if stolen or lost, limited data capacity, and lack of universal technology support.