What is a Magnetic Stripe Card?
A magnetic card is created by applying special materials with information storage capabilities onto a plastic substrate, forming the magnetic card. A magnetic stripe card is a type of plastic card with a black, gold, or silver magnetic stripe. It serves as a magnetic recording medium. Typically made from high-strength, heat-resistant plastic or plastic-coated paper, magnetic cards are moisture-proof, wear-resistant, and flexible. They are convenient to carry and offer stable, reliable usage. One side of the card usually has printed information, such as instructions or card insertion directions, while the other side features a magnetic layer or stripe that contains 2 to 3 magnetic tracks for recording data.
The information carrier in magnetic cards can be either liquid magnetic material or magnetic stripes. Liquid magnetic material is coated onto the card, or magnetic stripes, typically 6-14 mm wide, are affixed to the card. These stripes contain three tracks: the first two are read-only tracks, while the third is a read-write track, which can store dynamic information such as account balances.
The process of reading and writing data on magnetic cards is relatively simple, making them easy to use and cost-effective. As a result, magnetic cards were adopted early and developed across multiple application areas, including prepaid phone cards, toll cards, reservation cards, tickets, savings cards, and credit cards.
History of Magnetic Stripe Cards.
Credit cards are a typical application of magnetic stripe cards. Developed countries began widely adopting financial transaction cards for payments as early as the 1960s. The United States is the birthplace of credit cards, while Japan was the first to introduce ATMs that dispense cash using magnetic cards, as well as automatic ticket gates using magnetic card monthly passes. In 1972, Japan established unified specifications for magnetic cards, and in 1979, it developed the Japanese standards for magnetic stripe access credit cards, JS-B-9560 and JS-B-9561, among others. The International Organization for Standardization (ISO) has also established corresponding standards.
Throughout the 1980s, magnetic card usage became deeply integrated into various sectors of developed countries, including finance, telecommunications, transportation, and tourism. In the United States, for example, with a population of over 200 million, there were 1.1 billion credit cardholders—an average of 5 cards per person—with a total spending of approximately $469.5 billion. A significant portion of these credit cards were made from magnetic stripe cards, which resulted in notable economic and social benefits.
Due to the reasonable cost and ease of use of magnetic stripe cards, their use has rapidly developed in China as well. Since the Bank of China's Zhuhai branch issued the first credit card in 1985, approximately several million cards have been issued to date.
How to Make Magnetic Stripe Cards?
The production process of magnetic stripe cards involves several steps, including the production of the card itself, the embedding of the magnetic stripe, and the encoding of the information. The following is a detailed description of the magnetic stripe card production process:
1. Selecting materials and making the card body
The body of the magnetic stripe card is usually made of PVC or other plastic materials to ensure its durability and flexibility.
The first step in card production is:
Cutting: The body of the card is cut to a standard size (e.g. bank cards are usually 85.60 × 53.98 mm).
Surface treatment: Treat the card to make it smooth and ready for subsequent printing and magnetic stripe embedding.
2. Embedding the magnetic stripe
The key part of a magnetic stripe card is a magnetic stripe on the back, which consists of ferrite magnetic particles and is usually embedded in the upper part of the card. The magnetic stripe is divided into different tracks, which are used to store different types of data. The steps involved in making a magnetic stripe include:
Application of magnetic material: the magnetic stripe consists of a thin layer of magnetic material applied or embedded into the back of the card, usually by heat pressing or coating to hold the magnetic material in place.
Layering: The magnetic stripe usually has three tracks (Track 1, Track 2, and Track 3), each of which can store different types of information. Different tracks have different arrangements of magnetic particles.
3. Printing the card face information
Once the card body and magnetic stripe are ready, the next step is to print the information on the front or back of the card. This includes:
Cardholder information: e.g., name, card number, expiration date. This information is usually printed through digital printing technology or laser engraving.
Patterns and designs: Printed patterns, logos, barcodes, etc. according to the issuer's requirements. Financial cards may also have bank logos, signature strips, etc.
Security features: sometimes holograms or anti-counterfeiting marks are also added to the card for added security.
4. Encoding of magnetic stripe data
Once the card has been created, the cardholder's information must be encoded on the magnetic stripe. This is a critical step in the production of magnetic stripe cards and involves storing the data on the magnetic stripe in the form of the polarity of the magnetic field. The encoding device writes the data by changing the arrangement of the magnetic particles in the following steps:
Using an encoder: Magnetic stripe data writing is done through a device called a magnetic stripe encoder. The encoder magnetizes the data to the different tracks of the magnetic stripe according to the specifications of the track.
Track 1: Stores alphanumeric and numeric data, usually including the card number, cardholder name, etc.
Track 2: Stores purely numeric data, such as card number and expiration date.
Track 3: Can store other banking data, but is less used in modern times.
Testing and verification: After writing the information, the card is tested by the card reading device to ensure that the data is written correctly and can be read.
5. Security measures
On magnetic stripe cards used for financial purposes, some additional security features may be added, such as:
Signature strip: the cardholder can sign on the card for authentication during transactions.
Holographic security mark: A hologram is printed or embedded on the card to prevent counterfeiting.
Card Verification Code (CVC/CVV): usually located on the back of the card as an additional security measure to provide secondary verification during magnetic stripe transactions.
6. Quality Assurance and Issuance
In the final stage of production, the card manufacturing company performs a quality check on each card to ensure that:
The data encoded in the magnetic stripe is correct and can be read by the device.
The surface of the card is free from damage or printing defects.
Security features such as holograms or signature strips are intact.
Cards that pass the quality inspection are packaged and issued to end users, such as banks or businesses.
7. Card issuance and activation
When a cardholder receives a magnetic stripe card, it usually needs to be activated over the phone or online. During the activation process, the card information is matched with the data in the bank's database, and access rights are activated.
What Information is on Magnetic Stripe of Credit Card?
The information on the magnetic stripe is encoded by a change in magnetic orientation. This information includes the card number, cardholder name, expiration date, and service code. Different tracks store different types of information:
1. Track 1: Used to store alphabetic and numeric information such as cardholder's name, card number, etc.
2. Track 2: Mainly used to store numerical information such as card number and expiration date.
3. Track 3: Less frequently used, usually for storing additional banking data.
How Magnetic Stripe Card Works?
The working principle of magnetic stripe card relies on a black/gold/silver magnetic stripe embedded in the back of the card, and various functional operations are carried out by reading the data information stored on the stripe, and the following is a detailed description of the working process of magnetic stripe card:
1. Composition of magnetic stripe
The magnetic stripe on the back of a magnetic stripe card consists of tiny iron-based magnetic particles that are embedded in a plastic film. The magnetic stripe is usually divided into three tracks (Track 1, Track 2 and Track 3), each of which can store different types of data. These data are encoded into binary data (0's and 1's) by the change in polarity of the magnetic field.
2. Encoding of information
Different tracks store different types of information.
Track 1: Used to store alphabetic and numeric information such as cardholder's name, card number etc.
Track 2: mainly used to store numeric information, such as card number and expiration date.
Track 3: Less frequently used, usually for storing additional banking data.
3. Card-swiping process: data reading
When you use a magnetic stripe card, you swipe the magnetic stripe part of the card through the card reader, and the whole process is as follows:
Swiping: The magnetic stripe card is inserted or swiped through a POS machine or card reading device.
Magnetic head reading: Inside the card reader is a magnetic head that detects changes in the polarity of the magnetic particles on the magnetic stripe as it slides under the head.
Data decoding: These changes generate tiny electrical signals by which the magnetic head reads the binary-encoded data on the magnetic stripe and converts it into readable information.
Data transmission: The decoded data is transmitted to the system's backend for further processing, e.g. sent to the bank for payment authorization.
4. Transaction processing
After the data on the magnetic stripe is read, the information is sent through the payment network (e.g. Visa, MasterCard) to the issuing bank or payment processor for the following validations:
Card number and expiration date: confirms that the card is valid and belongs to the rightful cardholder.
Check digit (CVC/CVV): to verify that the data has not been tampered with or copied.
Service Code: Confirms the scope of use of the card, such as whether international transactions are allowed or if chip verification is required.
If the card information is verified, the transaction is approved and the payment is successful.
5. Magnetic stripe card security
Because the data on a magnetic stripe card is static and can be easily copied, this makes it vulnerable to so-called “skimming” attacks. Criminals can use a simple device to copy data from the magnetic stripe and create counterfeit cards.
6. Magnetic stripe cards vs. chip cards
To address the security concerns of magnetic stripe cards, many countries have moved to the use of chip cards (EMV cards). Unlike magnetic stripe cards, chip cards generate unique dynamic encrypted data for each transaction, which greatly improves transaction security.
Key differences:
Magnetic stripe card: data is static, easily copied, and less secure.
Chip card (EMV card): each transaction generates unique dynamic encrypted data, higher security.
7. Applications of magnetic stripe cards
Despite the lower security of magnetic stripe cards, they are still widely used in payment, access control, identification, etc., especially in areas where chip cards have not yet been fully promoted.
What Are the Disadvantages of Magnetic Stripe Cards?
As a widely used card technology, magnetic stripe cards have their own unique advantages and disadvantages. However, as technology evolves, they are gradually being replaced by more secure card technologies, such as EMV chip cards. The following is an analysis of the main advantages and disadvantages of magnetic stripe cards.
Advantages of Magnetic Stripe Cards:
1. Low Cost
Magnetic stripe cards have a relatively low production cost, making them widely used in fields such as credit cards, debit cards, and access cards. This technology is very affordable for card issuers and businesses.
2. Broad Compatibility
Magnetic stripe card technology has been around for decades, so most POS terminals, ATMs, and access control systems worldwide support magnetic stripe cards. This broad compatibility makes magnetic stripe cards easy to use across the globe.
3. Simple Operation
Using magnetic stripe cards for transactions or swiping is intuitive and easy. Simply swipe the card on the reading device, and the transaction is completed.
4. Capacity for Storing Information
Magnetic stripe cards have three tracks that can store a large amount of information, such as the cardholder's name, card number, and expiration date. This makes them suitable for a variety of application scenarios, including payment and identity verification.
Magnetic Stripe Cards Disadvantages:
1. Poor Security
The biggest disadvantage of magnetic stripe cards is their low level of security. Since the data on the magnetic stripe is static, it can easily be copied or stolen. Criminals using “skimmers” can read and copy the data on the magnetic stripe to create counterfeit cards, leading to credit card fraud.
2. Easily Damaged
Magnetic stripes are susceptible to physical damage or magnetization failure. If the magnetic stripe is scratched, worn, or exposed to strong magnetic fields, the card may fail and cannot be read by a card reader.
3. Lack of Dynamic Encryption
The data on a magnetic stripe card is fixed, and the same information is transmitted for each transaction. This lack of dynamic encryption, which would generate a unique security code for each transaction, makes magnetic stripe cards vulnerable to counterfeiting.
4. Gradual Obsolescence
Due to poor security, magnetic stripe cards are gradually being replaced by more secure chip cards (EMV cards). Many countries have already mandated the adoption of chip cards, and the use of magnetic stripe cards is steadily decreasing.
5. Single Use
Magnetic stripe cards mainly rely on swipe devices for reading and do not support modern payment methods such as contactless payment. This is out of step with the development trends of modern payment systems.
What is the Difference Between EMV and Magnetic Stripe Cards?
EMV cards and magnetic stripe cards are two different types of bank cards with different technologies, and they differ significantly in terms of data storage, transaction security and usage. Below is a detailed comparison of the two:
| Difference | Magnetic Stripe Cards | EMV Cards |
| Data Storage Methods | Magnetic stripe stores static data | Chip stores dynamically encrypted data |
| Transaction Security | Easily copied, forged, low security | Generate dynamic encrypted data for high security |
| Transaction Methods | Swipe card to read magnetic stripe data | Card insertion or contactless payment, read chip data |
| Anti-counterfeiting Function | Easily imitated and copied | Encrypted data is difficult to copy, strong anti-counterfeiting ability |
| Transaction Speed | Faster | Slower (card transactions), but faster for contactless payments |
| Scope of Use | Gradually decreasing, still used in some areas | Widely used globally, becoming the mainstream payment standard |
| Cost & Durability | Low production cost, easy to wear out | Higher production cost and greater durability |
What is the Difference Between Magnetic Stripe Cards and RFID Smart Cards?
There are significant differences between RFID smart cards and magnetic stripe cards in terms of technical principles, usage, security and application scenarios. The following is a detailed comparison of the two:
| Difference | Magnetic Stripe Cards | RFID Smart Cards |
| Technical Principle | Relying on magnetic stripes to store static data | Wireless communication via RF chip and antenna |
| Usage | Swipe card | Non-contact, close to the card reader |
| Data Storage and Transmission | Static data, data can be easily copied | Dynamic transmission, part of the RFID card data encryption, more secure transmission |
| Security | Easily copied, low security | Higher security, often using encryption technology to protect data |
| Transaction Speed | Faster, but requires physical contact | Very fast, no need for physical contact |
| Application Scenarios | Financial payment, access control, membership card | Access control, public transportation, electronic payment, identification, logistics management |
| Anti-counterfeiting and Data Protection | Weak anti-counterfeiting ability, data easily copied | Strong anti-counterfeiting ability, encrypted data transmission |
| Physical Durability | Easily damaged or invalidated | High durability, non-contact use, long lifespan |
| Costs | Low production cost | Higher production costs |
| Future Trends | Gradually eliminated | Increased demand, wide range of application scenarios |
What are the Categories of Magnetic Stripe Cards?
Commonly categorized as anti-magnetic:
1. Low resistance magnetic stripe card:
The magnetic stripe is weak, easy to external interference, the information is easy to be demagnetized or damaged. This type of card has low production cost and is usually used for short-term use cards, such as hotel room cards and membership cards. Low-resistance magnetic stripes are generally 300 or 650 OE.
2. High-impedance magnetic stripe card:
The magnetic stripe is stronger, and more resistant to interference, the information is not easy to be demagnetized, and has a longer service life. This type of card is usually used for financial cards, access cards, and other scenarios that require long-term use. High-resistance magnetic stripe is generally 2750, 3500, or 4000 OE.
International Standards for Magnetic Stripe Cards.
The magnetic stripe cards mainly specify the physical characteristics of the card and the recording technology. ISO 7810:1985 Identification cards Physical characteristics specify the physical characteristics of the card, including the material, construction, and dimensions of the card. The dimensions are:
Width: 85.72mm----85.47mm
Height: 54.03mm----53.92mm
Thickness: 0.76+0.08mm
Card corner radius: 3.18mm
General card size: 85.5x54x0.76mm
Notes on the Use of Magnetic Stripe Cards.
1. Avoid magnetic field interference
Stay away from magnetic objects: Magnetic stripe cards should avoid contact with magnetic objects such as magnetic clasps on cell phone covers, car keys, magnets, etc. to prevent magnetic fields from destroying the information on the card.
Stay away from electronic devices: Magnetic stripe cards should be kept away from cell phones, computers, TVs, radios, and other devices that can generate electromagnetic radiation, and avoid putting them together for a long time.
Stay away from household appliances: Avoid placing the magnetic stripe card near household appliances with strong magnetic fields such as televisions, refrigerators, microwave ovens, and electromagnetic stoves.
2. Avoid physical damage
Prevent pressure and bending: Magnetic stripe cards should avoid pressure and bending to prevent damage to the magnetic stripe.
Avoid high temperature and exposure to sunlight: Magnetic stripe cards should not be placed in a high-temperature environment or direct sunlight for a long time to prevent magnetic stripe performance degradation.
Keep the magnetic stripe clean: Magnetic stripe cards should keep the magnetic stripe area clean and avoid contact with oil stains, dust and other dirt. At the same time, do not put it together with keys and other sharp objects to prevent abrasion and scratching of the magnetic stripe.
3. Proper storage and carrying
Avoid contacting multiple magnetic stripe cards with each other: If there are multiple magnetic stripe cards, avoid sticking them close together, especially don't touch the magnetic stripes of two cards with each other to prevent the magnetic stripe information from interfering with each other.
Use an anti-magnetic wallet or case: It is recommended to use an anti-magnetic wallet or case to store magnetic stripe cards to protect the cards from magnetic field interference.
Proper Carrying Method: When carrying magnetic stripe cards, avoid placing the card close to the magnetic clasp of the bag to prevent the magnetic field from destroying the information inside the card.
Conclusion.
Chipbond Technology is a professional magnetic stripe card manufacturer in China. RFID products with a wide range of customized services, the main products are RFID smart cards, RFID core material, PVC material, NFC tags, clothing tags, industrial tags, animal ear tag keychains, card readers, and over 28 years of manufacturing experience with 300+ staff and a complete manufacturing and supply chain system: fast shipping and on-time delivery.
Whether you are looking for a reliable magnetic stripe card supplier or want to find a customized card solution for your business, CBT can meet your needs. We look forward to working with you to drive your business forward. For more information or inquiries at info@chipbond.com
