What characterizes a Contact Smart Card?

A Contact Smart Card is characterized by its requirement for physical contact with a card reader to initiate transactions. This means that the card must be inserted into or made to physically touch the reader to establish a connection. The interaction allows the card's chip to communicate electrical signals with the reader, enabling data transfer.

This physical contact is a key feature of Contact Smart Cards, as they rely on a direct connection to transmit information. This distinguishes them from contactless cards, which utilize radio frequency technology to communicate without needing to insert the card into a reader. Additionally, while some Contact Smart Cards might support various security features, including encryption or authentication, the fundamental nature of these cards is their method of operation involving direct contact.

The other options discuss characteristics that do not define Contact Smart Cards, such as relying on radio frequencies, offering biometric security, or storing transaction history on the card. These details are more applicable to other types of smart cards or technologies.