POS Magnetic Card Readers

Magnetic Card Reader

A Magnetic Stripe Reader, also known as a magnetic stripe reader, card reader, or MSR, is used to translate encoded data found on magnetic stripe cards. Usually they plug into your computer via USB interface, though there are also serial and PS/2 models available as well.

Magnetic stripe cards are more commonly seen as credit cards, customer loyalty cards, or gift cards. They have a strip of magnetic tape on the back, similar to what was used in VHS audio tapes. When you swipe the card through an MSR, the head translates the magnetic signal into the encoded data, then sends it on to your PC.

A new addition to MSRs is hardware-based encryption. Traditionally, a card reader sends data as plain text, meaning you can swipe the card while a text editor is active and save all the data. This creates a very strong vector for potential fraud. Thankfully, newer card readers, including the Magtek Dynamag, can be programmed to encrypt the data before sending it to your computer. In this instance, they are programmed by card processor, who are the only ones who can decrypt the credit card data.