You probably know that chip cards offer much better fraud protection and help prevent chargebacks than the now antiquated magnetic stripe cards, but what are the specific differences between the two? And how does that affect the decisions your business should make? These are important questions to have answers to when designing your payment processing solutions model, and knowing the differences will help you make better business decisions. The actual stripe is on the backside of the card, and it uses modified iron-based magnetic particles to communicate data between the strip and the receiving credit card terminal.
Read Any Magnetic Strip Card With a Square Reader and an Android Device
Magnetic stripe reader
The Square credit card reading device is basically just a magnetic read head, resistor, and microphone connection. By implementing an algorithm to decode the standardized audio encoding, it's possible to read arbitrary magnetic cards, not just credit cards. Skip to the end to find a link to my completed app. Did you use this instructable in your classroom? Add a Teacher Note to share how you incorporated it into your lesson.
magnetic stripe reader (magstripe reader)
A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. The magnetic stripe, sometimes called swipe card or magstripe , is read by swiping past a magnetic reading head. Magnetic stripe cards are commonly used in credit cards , identity cards , and transportation tickets. Magnetic recording on steel tape and wire was invented in Denmark around for recording audio. In , IBM used the magnetic tape idea to develop a reliable way of securing magnetic stripes to plastic cards,  under a contract with the US government for a security system.