Guide to Magnetic Stripe Card Readers

Magnetic swipe card readers speed up sales transactions and help keep your business safe

By Stephanie Fagnani

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Magnetic stripe card readers are essential for retailers who want to process electronic payment transactions and for organizations that want to keep access to certain areas limited to select employees. Magnetic swipe card readers are devices that read the information contained in the magnetic stripe on the back of certain types of plastic cards, including credit cards, driver’s licenses, loyalty cards and employee identifications badges, to name a few.

Card swipers read the magnetic stripe when the card comes in touch with a reading head. Card readers like retail point of sale (POS) systems require this contact to be via a swiping motion, while other magnetic stripe card readers, like ATMs, require manual insertion. Facts you should know about magnetic stripe card readers include:

There are two types of magnetic stripes: high-coercivity, which are harder to erase, and low-coercivity, which require a lower amount of magnetic energy to record. Magnetic stripe card readers can read either type.
When shopping for magnetic swipe card readers, consider coercivity type, writing standard, type of track, thickness of card, data density of card, magnetic head life and interface.
There are three tracks on the magnetic stripe, each capable of holding a certain number of characters. Most modern card swipers and encoders support the bi-directional reading of single, dual and triple track magnetic cards.

Action Steps
The best contacts and resources to help you get it done

Magnetic swipe card readers for retailers

Retail stores, restaurants and other vendors need card swipers to process credit card, debit card and gift card payments.

I recommend: Check with vendors, such as Advanced Merchant Services for credit card swipers and POS systems that include magnetic card swipe readers. POSGuys.com offers POS systems that come with magnetic card swipe readers for retailers and for restaurants. You can also obtain card readers from credit card providers like American Express.

Magnetic stripe card readers for access control

If you want to restrict access to certain areas of your organization, card readers are the answer. Magnetic stripe card readers can read employee and guest ID badges to determine who is and isn't allowed in restricted areas.

I recommend: Matrix Systems sells card readers designed to help control access to secured areas. Scan Technology and Cardcom Technology offer magnetic stripe card readers from major manufacturers to fit your needs. At Consumers Choice POS, POSGuys.com and POSMicro.com, you can also find a good selection of card readers.

SmartCard readers

SmartCards have both a magnetic stripe and a smart chip that hold information. SmartCard readers are hybrid card readers designed to read information on both the magnetic stripe and the smart chip.

I recommend: For SmartCard readers, go to suppliers, such as MagTek, Posh Mfg. Ltd. or Singular Technology Co. You can also find a good list of vendors of SmartCard readers at Business.com.

Insertion magnetic stripe card readers

ATMs, vending machines, gas pumps and many other types of equipment work best when the magnetic stripe card is inserted fully into card readers.

I recommend: For insertion card readers that meet the demands of ATMs and self-service kiosks, go to MagTek. Other vendors include Xico and Semtek Innovative Solutions, where you can find a variety of insertion card readers.

Tips & Tactics
Helpful advice for making the most of this Guide

Magnetic stripe card readers can be cleaned with specially made cards that aim to remove dirt, oil and residue from the reading equipment.
Credit card readers can be rented, but purchase prices are usually affordable - even for small businesses.
Wireless credit card readers are more expensive but are a good investment if you plan to make sales away from the office.

Featured Vendors

Magnetic Stripe Card Readers
Broad-line distributor web site features real-time stock status and pricing, online ordering, RFQ, technical support, product datasheets and photos.

Home Page | Catalog | New at Digi-Key | Product Education

www.digikey.com

ID Card Reader
Supplies access authentication systems including magnetic stripe smart cards and ID badges for controlling access to facilities and networks.

www.fargo.com

Omron Magnetic Card Readers
Broad-line distributor web site features real-time stock status and pricing, online ordering, RFQ, technical support, product datasheets and photos.

www.digikey.com

Magnetic Stripe Readers
Offers factory direct pricing on magnetic readers and POS equipment including all-in-one terminals, PIN pads, swipe terminals, and receipt printers.

www.merchant-accounts.com

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