Your credit and debit cards are the most common of all uses of the magnetic stripe cards. The user’s banking transaction details are encoded on to the stripe on the rear side of the card. Here, the magnetic stripe is coupled with a chip to provide higher security grade.

1. Uses of magnetic stripe cards
By Allan Hall
What is magnetic stripe card? Why are they used so often? All these questions must be answered
before learning the uses of magical cards called “magnetic stripe card”or “swipe card”. It is a
type of card that is capable of storing small amount of data into it, like a chip. Let me give you a
simple example to make you understand that where and how these cards are used, just open up
your wallet and you could see a magnetic stripe card lying into your wallet. Yes! Your credit and
debit cards, bank (ATM) cards, gift cards, loyalty cards, driver licence cards (overseas), phone
cards, membership cards, identity cards, and library cards. The science behind storage of data in
such a small space is it modifies the magnetism of tiny iron-based magnetic particles on a band
of magnetic material on the card. The magnetic stripe, sometimes called swipe card, is read by
swiping past a magnetic reading head.
CREDIT/DEBIT/ATM CARDS: This is the most common of all uses of the card. The user’s
banking transaction details are encoded on to the black or brown stripe on the rear side of the
card. The details can be accessed only when the card is swiped. This was the most secured wayof
carrying intangible cash in hand. Nowadays, an additional pin number or signature is needed to
authorize a purchase, or one can go for smart card technology instead. Here, the magnetic stripe
is coupled with a chip to provide higher security grade.

2. GIFT CARDS: This is a fantastic way of keeping a track of your gifts. Or else you can deposit
certain amount in the card and can gift it to the holder. This could be unique and smart way of
impressing someone. Some business men use this card to promote their business by making them
a promotional item. In this type of card no complex encoding is required. It simply consist of the
identity and the amount details
ID Cards: Student and employee ID cards are usually with magnetic stripes. This is a simple
card that is required to confirm the identity of the person and usually do not require swiping.
These cards are generally swiped when students and/or employees are entering or leaving the
premises of infrastructure.
PHONE/LIBRARY/MEMBERSHIP CARD: these are the secondary uses of the magnetic
stripe cards as they are used to keep a track record of the activity undertaken by the individual.
DRIVING LICENCE CARD: The second most common use of magnetic stripe card is driving
licence. Such driving licence stores all the information of the holder that is name, address, age,
expiry date of the card. This makes it easy for the cop to tack down some one while speeding or
other offenses.
LOYALTY CARD: The card are now becoming popular due the user friendly nature and they
relive us form the burden of carrying cash of credit/ debit card to the retail or grocery stores. One
has to carry this card, swipe it and that’s it. Many retailers make this card for regular customers.
These are some of the uses of magical swipe card that has made our life a lot easy and safe.
Article Source: http://magneticstripecardsses.bravesites.com/entries/general/uses-of-
magnetic-stripe-cards