Why do credit cards have a magnetic stripe?
The information such as the credit card number can be easily swiped into the machine. This is much faster and not subject to entry errors if someone had to type the information in.
What reader reads the magnetic stripe on the back of credit cards entertainment cards bank cards and other similar cards?
The magnetic strips on the back of bank cards and credit cards can be affected by strong magnetic fields or being close to weak magnetic fields. When you keep credits cards in a wallet with magnetic strip touching or being very close together, it is possible for the magnetic strips to affect each making them unreadable. Even so, the credit cards can still be used by manually keying in the credit card number.
"In today's modern world of technology, magnetic encoding has revolutionized the safe and reliable transfer of personal credit card data. However, once the magnetic strip has been damaged on the back of a credit card it will no longer work properly. The only solution is to replace it with a new card."
There are no magnets in credit cards. If you're referring to the 'magnetic strip' on the back of the card - it's a secondary system of identifying the card. When you insert your card into an ATM - the machine reads the magnetic strip which connects it to the account-holder's bank. Contrary to popular belief - it does not contain the PIN associated with the card.
The strip on the back of your credit card is made up of magnetic particles that contain the account information. Any contact with a magnet or magnetic field can cause the strip to become demagnetized and the card to be ruined. Exposure to magnets can cause the particles in the strip to rearrange, making the card unreadable. Read more: Why Do Magnets Ruin Credit Cards? | eHow.com http://www.ehow.com/about_5365431_do-magnets-ruin-credit-cards.html#ixzz1Odckj7cS