History[ edit ] The first prototype of magnetic stripe card created by IBM in the late s. A stripe of cellophane magnetic tape is fixed to a piece of cardboard with clear adhesive tape Magnetic storage was known from World War II and computer data storage in the s. He became frustrated because every adhesive he tried produced unacceptable results. The tape strip either warped or its characteristics were affected by the adhesive, rendering the tape strip unusable. After a frustrating day in the laboratory, trying to get the right adhesive, he came home with several pieces of magnetic tape and several plastic cards. As he walked in the door at home, his wife Dorothea was ironing clothing.
How does a magnetic stripe on the back of a credit card work? | HowStuffWorks
Terms and Definitions Confused by credit card terms? From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms. It can be black, brown or silver in color. It is the common type of card in the United States today. Often, it's called a "magnetic swipe" card, because the card is activated by swiping it through a device that can read the data in the stripe.
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