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Magnetic Stripe Technology

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MAGNETIC STRIPE TECHNOLOGY

I recalled a week before Christmas; I was at the shopping mall buying some clothes, shoes, bags, and gifts for my niece and nephews. Afterwards, I was about to pay to the cashier. Surprisingly, the amount that I purchased was greater than the cash on my hand. I was really nervous that time because it was the first time that happened to me; however, I remembered that I have ATM card on my wallet. I slip out my card from my wallet and gave it to the cashier. She courteously took the card from me and swiped it through a card reader. After a while, the lady on the cashier handed back my card with a receipt and gave me a generous smile while saying, “Thank you, Sir”. In that particular moment, I wondered or you may also wondered, “How did this transaction happen?” or “How can all information be stored on that card?” given the fact that it is just a plastic card. The answer on these questions lies on the back of our card. The black stripe, also known as the magnetic stripe, is what makes this possible.

Magnetic stripe technology was invented Fritz Pfeulmer, a German-born audio engineer in 1928. Although it was invented that time, it was not until the early 1960s that the technology found its way to meet the demands of people in metropolitan area. It was then first installed by the London Transit Authority as a mean to aid the increasingly busy London Underground. Its success was spread across the Atlantic Ocean. More so, by the late 1960’s, San Francisco incorporated the technology into their Bay Area Rapid Transit transportation service.

History of magnetic stripe technology tells us that it has really been used for a long period of time since the early 1960’s. The usage of the technology has been very common on the credit cards and debit cards. Credits cards were first issued in 1951 by Diners Club. However, during that time, magnetic stripe was not yet established and fully realized to set up into the cards; it was only on the 1970’s that banking sectors agreed to install the technology into their cards. On the other hand, debit cards were introduced on the early 1980’s and because of magnetic stripes’ key features, eventually it was installed to it. Thus, we could say that Magnetic Stripe Technology has been very useful to banking sectors due to its reliability and easy-to-use feature.

What is a Magnetic Stripe?

Magnetic stripe (magstripe) is the black or brown stripe found on our credit cards, debit cards, or even at the back of our airline ticket or transit tickets. It is made up of tiny iron-based magnetic particles in a plastic-like film. Each particle is really a very tiny bar magnet about 20 millionths of an inch long. These particles are either applied directly to the card or made into a stripe on a plastic backing which is applied to the card.
Its key features are cost effective and easy to use, encoded data can be rewritten and higher data capacity than barcodes.

How does the Magnetic Stripe Work?
The end-user defines the requirements for the magnetic stripe including the signal amplitude expected, the coercivity of the stripe, the encoding method and the bit density. The card manufacturer uses the first two points to select the type of magnetic material to use. The system designer is concerned with all four of the parameters.
As explained above, the stripe is made from many small particles bound together in a resin. The density of the particles in the resin is one of the controlling factors for the signal amplitude. The more particles there are, the higher the signal amplitude. The density (or loading) combined with the thickness give a method for controlling the amplitude. Signal amplitude is important because it defines the design of the readers for the cards. Standards exist (ISO/IEC 7811) which defines the signal amplitude for cards that are used in the interchange environment (such as banking). By conforming to these standards, a user ensures that the magnetic stripe can be read in any financial terminal worldwide.
The bit density of the information is selected based on the user requirement. The ISO/IEC standards (7811) give requirements for bit density for cards used in the interchange environment. These standards define tracks one and three as 210 bits per inch and track two as 75 bits per inch. The bit density in conjunction with the data format (see below) dictate how much data is encoded on each track.

How Information is Stored on Magnetic Stripe?
The working of the magnetic stripe is "based on the imparting of a positive charge (a digital '1') to a base metal coating (initially a digital '0') applied on an inert substrate". Writing data on the magnetic stripe requires a solenoid, which consists of a high-permeability magnetic material (usually an iron core is used) with an electrical winding on one end and a tiny gap at the other end (it is extremely important that the gap is located near the surface of the magnetic stripe).
Writing can be accomplished by letting current flow around the ring magnet. As previously mentioned, a current-driven wire creates a magnetic field around the wire. By winding the wire around the magnet, the magnetic field is created within the area that is bounded by the wire, and therefore magnetizes the ring magnet. At the gap, the magnetic flux forms concentrated fringe fields, which magnetize the magnetic stripe that is moving past the gap. Data is recorded on the magnetic stripe by reversing the direction of current as necessary. The magnetic field will flip the polarity of the solenoid, as a result of reversing the current in the wire, which causes flux reversal.
What happens to the magnetic stripe on the card? As tiny magnetic particles on the magnetic stripe are exposed to the fringe field that was created at the gap of the solenoid, they are polarized to the opposite pole of the solenoid. Generating a series of flux reversals creates a series of north-north and south-south interfaces. The creation of such interface allows the magnetic stripe to store data as a combination of different interfaces.

How does it differ to SMART card Technology? Smart card looks like a credit card in size and shape. However, inside of it is totally different. First of all, it has an inside -- a normal credit card is a simple piece of plastic. Below the protective layers of a smartcard contains an embedded microprocessor. The microprocessor is under a durable gold contact protection pad on one side of the card. Comparing to magnetic stripe card, smartcard has pennies higher than magnetic stripe technology. Even though it is higher, there are so many positive returns of it. Smartcards can be consistently reused for up to two years. Information is not erased from the smartcard when placed next to mobile phones, tv’s or clock radios. Smartcard locks are proven to operate better in exterior conditions. Thus, we could say that this smart card is the most cost effective card technology. Another difference of the smart card to magnetic stripe card is its lifetime. Smart card has a minimum 1 year of lifetime. However, magnetic stripe card has only minimum few weeks. Lastly, in terms of its durability, smart card is highly durable; however, magnetic stripe card is easily damaged.

REFERENCES:

Kamal, Shame Er Shah. Magnetic Stripe Technology. Retrieved from January 14, 2013, http://illumin.usc.edu/printer/157/the-magnetic-stripe-technology/

Introduction to Magnetic Stripe and Other Card Technologies. Retrieved from January 14, 2012, http://www.hightechaid.com/tech/card/intro_ms.htm

Magnetic Stripe. Retrieved January 15, 2013, http://cardps.com/service/magnetic-stripe

Magnetic Stripe Vs. Smartcard. Retrieved January 15, 2013, http://www.belinelocks.com/documents/CardTechnology.pdf

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