A contact chip card is a small card, which is a small sized embedded chip circuit that process data , these cards are made by PVC cards. A contact chip card is wireless, quick and secure transaction. The embedded Small chip card uses RFID , it is the technique of using an object for tracking and identifying radio waves. RFID technology sends and receives data from card reader, it has antenna for completing the transaction. A contact Chip card is an extensive application , they are used for data storage, identifation and quick transaction. This card is designed in such a way so that it can be user friendly and convenient for physical control, it receives input data perform some process and then re send the data to the users through Radio Frequency Identification. Contact Smart card provide computer security , business transaction, health care etc with security and flexibility. For secure transaction, it uses some cryptographic algorithm.