What Are Magnetic Stripe and Chip-and-Pin Card Readers?

Discover the two main types of card readers: magnetic stripe and chip-and-pin, and their crucial roles in secure transactions.

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Two types of card readers are magnetic stripe readers and chip-and-pin readers. Magnetic stripe readers scan data from the magnetic strip on the back of a card, while chip-and-pin readers read data from an embedded EMV chip, providing a higher level of security. Both types are commonly used in various transactions.

FAQs & Answers

  1. What is a magnetic stripe reader? A magnetic stripe reader scans the data stored on the magnetic strip at the back of a card, facilitating transactions.
  2. How does a chip-and-pin reader work? A chip-and-pin reader reads the data from a card's embedded EMV chip, and typically requires a PIN for added security.
  3. What are the advantages of chip-and-pin over magnetic stripe? Chip-and-pin readers offer a higher level of security due to encrypted data and are less prone to fraud compared to magnetic stripe readers.