A proximity card or prox card is a smart card which can be "read" without inserting it into a reader device, as required by earlier magnetic stripe cards such as credit cards. To use, the proximity card is held near an electronic reader unit for a moment. The reader usually produces a "beep" or other sound to indicate the card has been read. Proximity cards typically have a range of around 5 cm (2 inches) for reading, so the user often leaves the card inside his or her wallet or purse, and simply holds the wallet or purse near the reader. The term "proximity card" can refer to the older 125 kHz devices or the newer 13.56 MHz contactless smartcards.
Proximity cards can hold more data than a magnetic stripe card, for example an electronic funds balance, and so can be used for contactless payment systems. Many major banks are offering such cards.
Read more about Proximity Card: Method of Operation, Standards
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