[WEBINAR] The New Normal: Dealing with the Reality of an Unsecure World

Magnetic Stripe

Definition - What does Magnetic Stripe mean?

Magnetic stripe technology allows data to be stored on a conventional plastic card by magnetically charging tiny bits within a magnetic stripe on one side of the card. This type of technology has largely built the new credit and debit card model, which has, to a certain extent, replaced cash transactions around the world.

Magnetic stripe is also known as magstripe.

Techopedia explains Magnetic Stripe

By creating magnetic stripe cards with high durability and data integrity, banks and financial businesses have been able to implement all sorts of card-based transactions and procedures. Magnetic stripes are used in millions or billions of transactions per day and are also getting put into various types of identification cards. Specialized card readers can quickly take information off of a magnetic card, which is sent to a bank for authorization/authentication.

However, in recent years, a brand-new technology has emerged to rival magnetic card transactions. Experts refer to this as a "contactless payment system"; it involves situations where transaction information may be transmitted, not by a magnetic stripe, but by RFID signals sent from a small device chip. Apple, Inc., is pioneering contactless payment systems with its newest class of mobile devices, and others are likely to follow this trend, providing a future alternative to magnetic stripe cards.

Techopedia Deals

Connect with us

Techopedia on Linkedin
Techopedia on Linkedin
"Techopedia" on Twitter

Sign up for Techopedia's Free Newsletter!

Email Newsletter

Join thousands of others with our weekly newsletter

Free Whitepaper: The Path to Hybrid Cloud
Free Whitepaper: The Path to Hybrid Cloud:
The Path to Hybrid Cloud: Intelligent Bursting To Amazon Web Services & Microsoft Azure
Free E-Book: Public Cloud Guide
Free E-Book: Public Cloud Guide:
This white paper is for leaders of Operations, Engineering, or Infrastructure teams who are creating or executing an IT roadmap.
Free Tool: Virtual Health Monitor
Free Tool: Virtual Health Monitor:
Virtual Health Monitor is a free virtualization monitoring and reporting tool for VMware, Hyper-V, RHEV, and XenServer environments.
Free 30 Day Trial – Turbonomic
Free 30 Day Trial – Turbonomic:
Turbonomic delivers an autonomic platform where virtual and cloud environments self-manage in real-time to assure application performance.