For new technology to survive in today's environment there must be a special factor associated with it. It has to provide a cutting edge advancement over and above how things are being done at the present time. The plastic money system in use today, achieves great success when looking at the lack of security associated with it. When you look at the attacks on the card and ease with which fraudulent activities occur, it is not surprising that organizations, individuals and financial institutions are looking for a replacement to them. A card that would ensure security to the end user and the issuers of the card while also ensuring authentication, data integrity, speed and convenience would be the smart card. This report emphasises the growing need to heighten the security measures with which we conduct our daily lives and transactions. This report will show how a smart card works and also that by adding biometric security to the card we are in fact securing our transactions over what is available to us in today's society.