Magnetic stripe cards include a magnetic stripe on the back, which are used to encode data. The stripe is comprised of iron particles in a plastic film. They’re often used for credit and debit cards, gift cards, discount cards, etc. They’re swipeable using a POS system, allowing you to access the data stored in the card.

Why Would You Use Encoded Magnetic Stripes on Your Cards?

Magnetic stripe cards are one of the most common types used. And although there are other options, magnetic stripe cards have many benefits.

1. ​Data Storage: The primary purpose of encoded magnetic stripes is to store important data in a compact and easily-readable format. This data can include personal information, account details, access codes, loyalty program data, and more.
   
2. Transaction Processing: Magnetic stripe cards are widely used for payment transactions. When swiped through a card reader, the magnetic stripe contains the necessary information for the reader to communicate with the issuing bank and process the transaction.
3. Access Control: Many organizations use magnetic stripe cards for access control. Employees or authorized individuals can swipe their cards to gain access to specific areas, such as office buildings, parking lots, or secure facilities.
4. Loyalty Programs: Retailers and businesses often issue loyalty cards with magnetic stripes to track customer purchases and offer rewards or discounts based on their spending behavior.
5. Identification: Magnetic stripe cards are commonly used for identification purposes. Examples include student IDs, membership cards, and library cards. The magnetic stripe can hold information like the person's name, ID number, and membership level.
6. Time and Attendance Tracking: Some companies use magnetic stripe cards to track employee attendance and work hours. Employees can swipe their cards when they arrive and leave, helping the company manage payroll and attendance records.
7. Hotel Key Cards: Many hotels use magnetic stripe cards as room keys. Guests swipe the card to unlock their rooms, providing a secure and convenient way to access their accommodations.
8. Healthcare Records: In healthcare settings, magnetic stripe cards can be used to store patient information, medical history, and insurance details. This information can be easily accessed by medical professionals for accurate treatment and billing.
9. Public Transportation: Some public transportation systems use magnetic stripe cards as electronic fare cards. Passengers load credit onto the card and swipe it at turnstiles or card readers to access trains, buses, or other forms of public transport.
10. Library Systems: Libraries often use magnetic stripe cards to manage their collections and lending systems. Borrowers can use their cards to check out and return books, and the system keeps track of due dates and fines.
11. Gaming and Entertainment: Magnetic stripe cards are used in gaming establishments, such as casinos, for tracking player activity and managing rewards or comps.
12. Visitor Management: Businesses and organizations use magnetic stripe cards to manage visitor access. Temporary visitors can be issued magnetic stripe cards with limited access during their visit.
    

How Do Magnetic Stripe Cards Work?

Magnetic stripe cards use a magnetic stripe on the back to encode data into the plastic card. This magstripe is made up of iron-based particles in a plastic film. In fact, each small iron particle is an extremely tiny magnet. Using a system with a magnetic pull, these particles are magnetized in different directions, or encoded, creating a unique pattern for each card.

When the card is swiped by your POS system, the system reads the pattern which decodes the data encoded into the card. This is why it’s important to keep magnetic stripe cards away from things that can cause demagnetization such as certain phones, strong magnets, etc.

How Is Data Encoded to the Card?

Data is typically generated and exported from the system you will have your cards scanned by, for example, your POS system, membership/loyalty, etc.

The data used for your card will depend on its use. For example, a gift card will contain an account number which is used to look up available monetary value within your system. A gym membership card may include an account number that connects the system with data pertaining to whether a customer has paid their monthly membership charge.

The data from your POS system will be exported in list form to a CSV or another file format. Once the data is exported, it is sent to IDProductsource. We will then print the code on each card’s magnetic stripe. We take charge of the entire process, from card creation to printing and beyond.

Encoding instructions for magstripes will vary depending on the stripe used. Magstripes come in both track 1, track 2 or both tracks of magstripe (think of a track as a line). The number of characters is generally between 8 and 16 and could require a specific start number.

Not sure how to encode your magnetic stripe cards? This process will depend on the POS system you have. We can walk you through the entire process. 

How Much Do Magnetic Stripe Cards Cost?

Depending on the type of card, design and quantity of cards you choose your cost per card will vary.