It is possible to carry out electronic transactions or get physical entry to a secured area using a magnetic stripe card. User identification information is encoded in the "stripe." It is presently possible to use a magnetic stripe card to pay for hotel accommodations, purchase gift cards, or utilise public transportation with a driver's licence. Magnetic stripe cards are presently being phased out in favour of more secure microchip cards.

What Makes a Magnetic Stripe Card?

Tiny iron-based magnetised particles make up the three smaller stripes that make up the magnetic stripe on the back of a credit card. Personal data and account security functions are stored in these so-called data tracks. A magnetic current is introduced into the stripe when passed through a card reader, allowing a computer to read the data in binary code.

How to Use a Magnetic Stripe Card

Plastic or sturdy paper is used to make the cards, typically 2 inches by 3 inches in size. The data is stored on plastic film with iron particles implanted in a stripe on the reverse. To use an electronic reader, insert it into a slot on the machine. The reader decodes the embedded data and then confirms the intended transaction or access.

What's on a MagStripe Card?

It is possible to read the magnetic stripe on a credit card by looking at the three horizontally-stacked tracks, each occupying a section of the magnetic stripe. The amount and type of data stored on each track vary. Credit cards almost entirely use the first two tracks. A nation or currency code may be included in the third track on rare occasions. Many different kinds of magnetic stripe cards make use of all three tracks.

How to Crack a Magnetic Stripe Card

Since the advent of magnetic stripe cards, they have been a target for fraud. Data thieves can use devices capable of skimming and copying data from a magnetic stripe. It is used to make duplicate cards that may be used in stores or to access the user's online accounts. New means of securing transactions and allowing access were developed due to this potential for misuse.

What's Replacing Magnetic Strips

Magnetic stripe technology is being phased out in favour of the EMV microchip, often called chip-and-PIN. One of the advantages of microchip cards is their unique, one-time encrypted digital signature, which is more difficult to replicate. Additional security measures may include requiring a PIN or signature.

The use of magnetic stripe cards hasn't completely faded away. The two technologies are now being used by shops to handle transactions for the time being. While a microchip card is inserted into a slot on the front of the retailer's machine, a magnetic card is "swiped" on its side by the device.

Transactions Using Magnetic Stripe Cards as an Example

Magnetic stripe cards can be seen in action in the following instances.

Gift Cards

A wonderful way to use a magnetic stripe card is to purchase a pre-loaded gift card with a predetermined price. Cashiers inquire how much money you'd want to put on a gift card at the time of purchase. They will swipe the card and input the amount into the POS system. When the card is stolen, it is encoded with the amount you chose and linked to your card's serial number. The card is swiped a second time when the intended recipient uses it.

Transit Cards

The magnetic stripe card is also widely used in public transportation. You may see how much money is left on your account and how many journeys the card's value represents on a transport card—often a bus or railway pass. A magnetic card reader reads your card's account number, immediately deducts the fare from your account, or records the food based on time or distance travelled.

Credit Cards

The same principles apply to a credit card with a magnetic stripe. POS machines, data networks, and transaction-processing computers work together when a customer swipes a credit card. The information, account number, and credit limit of a consumer are derived from this. There will be no hold on the account if the consumer falls under their limit.

The Magnetic Stripe Card's History

Although the first credit cards were issued in 1951, it wasn't until the 1970s that the widespread use of magstripe credit cards took off. Before the magnetic stripe card, a store clerk, had to write down credit card numbers by hand and send them to the bank to pay.

A machine that could duplicate embossed numbers was developed, but there was still no way to tell if there was enough money to pay a charge other than calling your bank. In the 1980s, the development of infrastructure for magnetic stripe cards fueled the expansion of the credit card business.