MAGNETIC CARD ENCODER AND READER CODE
The main difference between the two technologies is that while magnetic stripes contain static information, the card chip creates a unique code for each transaction and does not use that code again. So that makes the data much more vulnerable to fraud either by making fraudulent transactions or even selling the data to unscrupulous individuals on the Dark Web. But how does it compare to the technology of chips on cards? First, the data on those magnetic stripes is static, unchanging.
Magnetic Stripe Card Readers versus Chip Card ReadersĮveryone is familiar with the magnetic stripe on the back of a credit or debit card. “It was the first step in digitizing payment information,” said Thad Peterson, senior analyst with Aite Group. When introduced in the 1970’s, magnetic stripes were cutting-edge technology and changed the way payment cards would be processed for decades. Not until 1980 did the price of the technology become acceptable to Visa and MasterCard. Just before MasterCard and Visa joined up the cards cost less than five cents per card to make. The original cards cost about two dollars per card to make, but with economies of scale and improved production methods, they eventually came down in price. It also allowed the travelers to use the new card for paying for tickets electronically and other services using the new cards. American Express issued hundreds of new cards to frequent travelers in the Chicago area.
In 1970, a joint pilot project by American Express, American Airlines, and IBM took place at Chicago’s O’Hare Airport. Unfortunately, these cards can also be affected by the use of external devices placed over the magnetic stripe card reader in order to fraudulently skim personal information. The problem with this magnetic stripe technology is that a card can be misread, it can wear out due to use, and the data can be corrupted. While a magnetic stripe is more difficult to create than a barcode, the technology for reading and encoding data on a magnetic stripe is widespread and it is easy to get.
Moving Past Magnetic Stripe Card Readers in 2019Ī magnetic stripe card reader is a device used to read magnetic stripe cards, such as credit cards.Ī magnetic stripe card is inexpensive compared to other card technologies and not hard to program.
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