Your Next Mastercard May Not Have a Magnetic Stripe – Review Geek
Beginning in 2024, Mastercard will no longer require European banks to situation credit score or debit playing cards with a magnetic stripe. The identical will occur within the U.S. in 2027, as Mastercard hopes to kill off the magnetic stripe by 2033.
Mastercard would be the first fee community to ditch the magnetic stripe, although its opponents are certain to observe swimsuit. The firm’s cause for ditching magnetic stripes is fairly easy; the expertise is much less safe than newer chip card and NFC methods.
First launched within the Nineteen Sixties, magnetic stripe playing cards are literally very low-tech. They’re merely plastic playing cards affixed with a piece of magnetic tape—the identical sort of tape we as soon as used to report audio and video. Cardholder data is encoded on this tape, and fraudsters can steal this data with a single swipe. (Check out this prototype magnetic stripe card—it ain’t precisely high-tech!)
Chip card microprocessors and contactless NFC funds are way more safe than magnetic stripes. They generate distinctive transaction codes for every buy, so even when a unhealthy actor manages to intercept your chip card fee, they’re caught with a single-use transaction code that your financial institution can’t settle for a second time.
Some individuals might be mad that Mastercard is ditching the magnetic stripe, however it doesn’t actually matter, as a result of around 86% of in-person transactions make the most of chip playing cards in the present day. For reference, the final main change to bank card fee methods got here in 2008, when fee networks now not required that bank cards be embossed for manual card imprinters or “zip-zap machines.” Given the irrelevance of handbook card imprinters in the present day, it’s secure to imagine that magnetic stripe expertise will sooner or later really feel like a distant reminiscence.