Magnetic Stripe

The magnetic stripe, or magstripe, is the black bar that runs across the back of many credit and debit cards. It’s used to store the cardholder account details necessary to make a purchase.

Magstripes are composed of magnetic particles, each one similar to a bar magnet, only on a micro scale. Magnetic stripe readers are equipped with a solenoid that generates strong magnetic fields. When the magnetic stripe card is moved over this surface, the device can electronically capture the information.

At one time, magstripes were the most common method of storing information on credit cards. Today, the magstripe has largely been replaced by embedded EMV chips, which are infinitely more secure. While most of the payment cards currently in circulation feature both a magnetic stripe and a chip, card companies are in the process of phasing out magstripes altogether.