Smart Cards provide a convenient way of carrying a limited amount of personal information. This may include medical information, bank account and password information, etc.. To protect this information from unauthorized access, data can be encrypted when stored on the card. To ensure privacy, we require an authentication process to ensure legitimate access to the information. Smart Cards and card readers are subject to physical attacks and it is risky to store decryption keys directly on the cards. In this paper a key management and mutual authentication scheme is introduced, which uses parameters unique to each Smart Card and authorized card reader.