A magnetic stripe is the thin black bar on the back of a credit card which stores information about the account and card holder. There are three tracks within the stripe that store information. However, the third track is not yet typically used by most major financial institutions. Track 1 is the only one which includes a card holder’s name. Track 2 only includes numerical data such as account number and expiration date. The magnetic stripe is used by card readers or ATM’s to make instant electronic purchases or dispense cash.
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