FULL PRODUCT VERSION :
java version "1.7.0_07"
Java(TM) SE Runtime Environment (build 1.7.0_07-b10)
Java HotSpot(TM) 64-Bit Server VM (build 23.3-b01, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Mac OS X 10.8.1
Darwin lambda.local 12.1.0 Darwin Kernel Version 12.1.0: Tue Aug 14 13:29:55 PDT 2012; root:xnu-2050.9.2~1/RELEASE_X86_64 x86_64

EXTRA RELEVANT SYSTEM CONFIGURATION :
Connected a ACR38U smartcardreader (CCID)
Inserted a Belgian eID card in the reader.

A DESCRIPTION OF THE PROBLEM :
Smartcards inserted in a smartcardreader are not detected by Oracle's Java 7 for Mac. It detects the reader, but not the card.

REGRESSION. Last worked in version 6u31

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
connect a reader and insert a smartcard. Then basically do this in Java:

TerminalFactory factory = TerminalFactory.getDefault();
CardTerminals cardTerminals = factory.terminals();
List<CardTerminal> cardTerminalList;
cardTerminalList = cardTerminals.list();
for (CardTerminal cardTerminal : cardTerminalList){
    System.out.println(cardTerminal.getName());
    if (cardTerminal.isCardPresent()) {
    // not getting here
   }
}


EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Expected to detect the card. This works in Mac OS X's own Java 6 VM.
ACTUAL -
The card is not detected. The VM acts as if the reader is empty.

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
import javax.smartcardio.*;
import java.util.List;

public class SmartCardBug {

    public static void main(String[] args) {
        TerminalFactory factory = TerminalFactory.getDefault();

        CardTerminals cardTerminals = factory.terminals();
        List<CardTerminal> cardTerminalList;
        try {
            cardTerminalList = cardTerminals.list();
            for (CardTerminal cardTerminal : cardTerminalList) {
                System.out.println(cardTerminal.getName());
                cardTerminal.waitForCardPresent(10000);
                if (cardTerminal.isCardPresent()) {
                    Card card;
                    try {

                        card = cardTerminal.connect("T=0");

                        card.beginExclusive();
                    } catch (CardException e) {
                        System.err.println("could not connect to card: "
                                + e.getMessage());
                        continue;
                    }
                    ATR atr = card.getATR();

                    byte[] atrBytes = atr.getBytes();
                    StringBuffer atrStringBuffer = new StringBuffer();
                    for (byte atrByte : atrBytes) {
                         atrStringBuffer.append(Integer
                                    .toHexString(atrByte & 0xff));
                    }
                    System.out.println("ATR= "
                                        + atrStringBuffer);

                    card.endExclusive();
                    card.disconnect(true);
                }
            }

        } catch (CardException e) {
            System.err.println("error on card terminals list: "
                    + e.getMessage());
            System.err.println("no card readers connected?");
            Throwable cause = e.getCause();
            if (null != cause) {
                System.err.println("cause: " + cause.getMessage());
                System.err.println("cause type: "
                        + cause.getClass().getName());
            }
        }
    }

}
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
We currently recommend our customers to deinstall Oracle's Java version and to stick with Apple's Java version.