In 1990 England’s National Westminster Bank develops a smart card named as mondex. It was basically design as a virtual wallet or server as a electronic cash. Any sum of the cash can be channelized by the Mondex smart card. MasterCard international has purchased checking interest in leading firms; in 1997 Mondex International join those companies as Wells Fargo and AT&T in pursuance with the advancement of the technology.

The designing of the MONDEX smart card allow users to shift their cash electronically into the card and  use the card up to the limit of the total cash which u have transferred in it. This card provides a payment arrangement system by using all the capableness linked with the Mondex smart card. The smart card could be used as an easiest choice for the placement of cash.

Mondex smart card was basically setup in 1995; even the design was old at that time.it was launched two years before the Master card presumed the technology control.

The banks that recently used the Mondex smart card include Scotiabank, Bank of Montreal, National Bank of Canada, Le Mouvement des caisses Desjardins, Canada Trust, and Toronto Dominion Bank. Many lending banking institutions work on the idea but mondex smart card work very deeply for it.

Mondex smart card has tendency to make transactions between two cards, which credit card and debit card do not have. When someone is using its debit card or credit card, the user must have to be communicating with the bank and the card user.  Mondex card have implanted a microprocessor with advanced encoding tools and tamper-proof hardware which is design to make it save from hackers. The power of Mondex to do transactions offline is actually meant that they are not particularly depend upon the on expensive network infrastructure, which reduces the cost of transactions. Offline dealing some time being anonymous ,as they are really  recorded in the card’s processor memory and can be recover next time when the card is utilized in the ATM , or as the merchant upload the data of the transactions to the bank pc.

A substantial disadvantage related with the MONDEX is that the dealings are not actually anonymous. Not like with the pre-paid calling cards, which also founded on the same concept of the smart card, one could not be able to purchase the Mondex smart card until he/she disclose its identity. Every card has an unequaled number by which he can easily be distinguish. Smart card is not as much successful as it was certain at the time of launch, customers are not that much satisfied with the services of the card. You can lose your whole sum of money if you lose your Mondex smart card, which is not happen in debit or credit card. it is just like to lose a wallet which is full of cash . In the credit card protection is available if the loss exceeding the limit of $ 50. This type of protection is not available in the Mondex smart card.

The Mondex smart card system is fully auditable. There is the record of the date, time, participants of each transaction, and amount, which sometimes bonds the user privacy. In spite of these Mondex could not arrogate that it is fully audible system. Overflow can be occurring in the system after the huge number of transactions, which is due to short memory of the system. Sometimes it losses the substantial data due to its shirt memory.

People say that this is the main flaw of the Mondex system which make it difficult to reliable to handle the fraud. However the Mondex cards have the ability to recover the minor frauds in the cash system.

Mondex consider that the system of electronic payment is fastening to the disagreeable person who has issues over his security that they are not properly informed by the system. Still the use of the smart card only depends upon the user’s level of trust.

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