Mini DX5, Magnetic Card Reader, Portable Card Reader

A magnetic card reader is a device used to read and interpret information encoded on the magnetic stripe usually found at the back of plastic badges such as credit cards, ID cards, key cards, gift cards, membership cards, and loyalty cards. Today, these devices are used in most businesses for processing transactions while others such as magnetic ID card readers are used to verify personal details for identification purposes.

The magnetic stripe at the back of the badges has iron-based magnetic particles covered in plastic tape. The magnetic stripe is blank when the magnetic particles are polarized in the same direction. To write information on the magnetic stripe, a special electromagnetic writer called an encoder is used to magnetize the particles in either North or South Pole direction. The writing process is known as flux reversal, which creates a magnetic field that can be detected by the magnetic stripe reader.

A magnetic reader is also known as a mag stripe reader and can transfer data to a computer program through a USB, serial port, or keyboard wedge connection. Magnetic stripe card readers are categorized by the way they read badges. For instance, insertion readers require the plastic badge to be inserted in the device while swipe readers require the badge to pass completely through the reader.

A magnetic stripe card is inexpensive compared to other card technologies and not hard to program. While a magnetic stripe is more difficult to create than a barcode, the technology for reading and encoding data on a magnetic stripe is widespread and it is easy to get. The problem with this magnetic stripe technology is that a card can be misread, it can wear out due to use, and the data can be corrupted. Unfortunately, these cards can also be affected by the use of external devices placed over the magnetic stripe card reader in order to fraudulently skim personal information.

Everyone is familiar with the magnetic stripe on the back of a credit or debit card. But how does it compare to the technology of chips on cards? First, the data on those magnetic stripes is static, unchanging. So that makes the data much more vulnerable to fraud either by making fraudulent transactions or even selling the data to unscrupulous individuals on the Dark Web.The main difference between the two technologies is that while magnetic stripes contain static information, the card chip creates a unique code for each transaction and does not use that code again. So even if a criminal obtained the information for a point of sale transaction, the information cannot be used again.

Magnetic stripe came from the merging of two existing technologies: telephones and the magnetized tape being used in reel-to-reel tape recorders. On the back of a card, a small magnetic strip would be attached. Being magnetic it could be programmed with a telephone number that would be dialed when the card was swiped, to complete the transaction.

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