Integrated Circuit Card

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DEFINITION of 'Integrated Circuit Card'

A card that has an embedded circuit, such as a computer chip. Integrated circuit cards are made of plastic or a similar material, and are most often associated with specific credit cards known as EMV cards.

BREAKING DOWN 'Integrated Circuit Card'

Integrated circuit cards allow the storage of information on the card itself. The consumer's information on the card is accessed when the card is used in a card scanner. Combined with other security measures, such as a PIN number or password, the chip allows the secure transmission of personal and financial information.

Europay MasterCard Visa (EMV) cards are known as “smart cards” due to their integrated circuit chip (ICC). Though they’re mainly used in Europe and Asia, they’re beginning to become more frequent in the United States. 

While integrated circuit cards are often associated with credit cards, they are also used in a variety of other settings. For example, employees may be assigned an identification card that they must scan in order to be allowed inside a secure building. 

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