The magnetic card has a black magnetic strip 1CM wide and as long as the bank card. Chip cards are just like IC cards a long time ago. Chip cards can be seen as cards with a metal chip.

1. Magnetic stripe cards are low-cost, low-security, and easy to degauss

Criminals usually use surveillance cameras installed on ATMs to watch you enter your password and steal it. Your password is installed on this device used to steal customers' credit card information. The card is inserted and there is a magnetic head inside, which reads all the information on the card. Bank card copying equipment and even password stealing equipment have flooded into the market in large numbers. Equipment such as card readers can be easily purchased online or in electronic markets. The price of a complete set of equipment exceeds 10,000 yuan. From this point of view, it is not surprising that bank magnetic stripe card theft cases occur frequently. Various national departments also attach great importance to this matter. Soon the central bank issued new regulations. By 2015, magnetic stripe cards will be eliminated in economically developed regions and financial IC cards will be fully used.

2. The chip card is an upgraded version of the magnetic stripe card. The chip card has a large capacity.

It can store information such as keys, digital certificates, fingerprints, etc. The card has read and write protection for the data. Encryption protection, and use personal password, card and reader two-way authentication for use protection. Chip cards are extremely difficult to copy and have strong resistance to attacks. Financial IC cards are also more stable than magnetic stripe cards and will not be degaussed. The difference in appearance is that if there is a black magnetic stripe on the back of your bank card, it is a magnetic stripe card; if there is something like a golden metal square on the front of your bank card, it is a chip card. As shown in the picture below, the one at the back is a magnetic stripe card, and the one with a chip on the front is a chip card.

3. Card core replacement

Bank card core replacement is a security risk because the track information of traditional magnetic stripe cards is easily copied. In contrast, chip cards have key encryption technology and the encrypted information is randomly generated. Wang Yu, a senior risk expert at China UnionPay, said that there has never been an actual case in the world where chip bank cards have been copied, leading to counterfeit card fraud.

Before October 31, 2014, all card-issuing banks and acquiring institutions will close the function of magnetic stripe swiping in domestic POS channels using chip-magnetic stripe composite cards, and will only use chips for transactions; from 2015 Starting from now, various banks will gradually stop issuing magnetic stripe cards and only issue chip cards.