“Cash or credit”? These are common household phrases these days. Do we really understand how to use a credit card properly? Do you know what that strip on the card means, and how it works? If you do know, you’re a step above the rest.
The credit card strip has sort of the same stuff on it that a check does. You know the router numbers on your check? It’s like that (http://www.howstuffworks.com/question503.htm). Those are going to be your numbers, though you may not see them or pay attention to them. But they’re there on your card and your statement. When that card is swiped, that number then, gets read by an “acquirer”, at the other end of the line (ibid).
The numbers on the strip, to get there, go to a point of sale system (ibid). Point of sale systems are usually used by supermarkets, restaurants, and hardware stores (http://en.wikipedia.org/wiki/Point_of_Sale). They use Ethernet, on a regular DOS or Unix system (ibid).
What you don’t want is to get that strip near a magnet. If you’ve a credit card, do not let it near the fridge or the microwave! The magnet in those systems will wipe the little magnet on your card, and you’ll be faced with an embarrassing moment (http://www.howstuffworks.com/question503.htm).
If you’re feeling adventurous, you could look for yourself at the card. Ever wonder what exactly is there? For you technophiles, there’s magnetic strip readers out there for a fee (http://www.makezine.com/01/magstripe/). Others might in turn wish to be careful; since every time there’s new technology, there is also a way to twist it illegally and this is no exception. So be careful, someone might be reading your card right now!
That’s how the information was stolen from all those people at Tj Maxx a couple months ago (http://www.msnbc.msn.com/id/17853440/). Apparently it was the worst ever, and they still don’t know the full extent (ibid). But buyer beware, because those same magnetic strips that so handily give off the information were being used for this consumer fraud incident!
Since now you know what the strip on your card does, hopefully this will help you stay away from issues such as this, and not be a victim of credit card fraud. Know your numbers! That strip is sending out all the information about your banking to the store in question, once it gets your info. So next time your monthly statement comes in, you’ll know exactly how what went where!
