A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. The magnetic stripe, sometimes called swipe card or magstripe , is read by swiping past a magnetic reading head. Magnetic stripe cards are commonly used in credit cards , identity cards , and transportation tickets. Magnetic recording on steel tape and wire was invented in Denmark around for recording audio.
Why Chip Credit Cards Are More Secure than Magnetic Stripes
Chip card vs. magnetic stripe card: Which one is better? | Chetu
Criminals always seem to find a way to get around security measures, and the magnetic stripe is no different. In the s retailers were using credit card imprinters, which made a copy of the embossed information on the card for the business to keep. The imprinting machines served their purpose, but they were time consuming, requiring manual checks initially and in later years phone verification for each sale. Soon an IBM engineer came up with the idea of melting magnetic stripes that captured customer information onto plastic cards leading to a new milestone in the adoption of credit cards. Interestingly, the magnetic stripe or strip was not initially designed for credit cards.
Why EMV chip cards are replacing magnetic stripes
The US is in the midst of a major financial transition: swapping out our old-fashioned magnetic strip credit cards for ones equipped with a security chip. Card issuers have said chip-enabled cards provide much better protection against fraud than traditional magnetic strip credit cards. What makes the new cards superior and how can it protect you from getting scammed? But manufacturing a card with a working EMV chip which stands for Europay, Mastercard, and Visa, the companies that originally developed the technology is a much harder feat.