A smart card is like a special credit card with a computer chip inside. The chip stores information that helps to keep track of how much money is inside the card and what kinds of things you can buy with it. It also helps to keep your money safe and secure, like a digital safe. Whenever you use your smart card at a store, the chip sends a signal to the store's computer to let them know how much money you have available, and if it's enough to pay for what you're buying.