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"Smart cards are programmable and can contain a memory of about 64 kilobytes," said Vanderhoof. "This is an exponentially larger amount of data than the magnetic stripe card, which holds about 200 bytes, and smart cards can actually execute programs."
The Cost Disadvantage
Probably the only element holding back sales of smart cards is cost, according to Davis. For instance, a mass transit company may pay 5 to 10 cents for a magnetic stripe card, but will have to pay $3 to $5 for a smart card. "This is quite a big difference," said Davis. "But, at least for those in mass transit, it pays off in the long run."
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