Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

MacRumors

macrumors bot
Original poster
Apr 12, 2001
68,990
40,003


Mastercard last week announced that its cards will no longer be issued with the magnetic stripe by 2029, which will presumably include Apple Card.

apple-card-1.jpg

The magnetic stripe was an early 1960s technology that allowed card information to be encoded onto magnetic tape that is laminated to the back of a card, paving the way for electronic payment terminals and chip cards. Now, Mastercard is set to be the first payments network to phase out the magnetic stripe.

Starting in 2024, Mastercard credit and debit cards will not be required to feature a magnetic stripe in most markets, including Europe. Banks in the United States will no longer be required to issue cards with a magnetic stripe in 2027. Mastercard expects that the magnetic stripe will disappear in Europe most quickly, where chip cards are already widely used.

By 2029, there will be no new Mastercard credit or debit cards issued with a magnetic stripe, but prepaid cards in the U.S. and Canada will be exempt from this change. By 2033, no more Mastercard credit and debit cards will have magnetic stripes at all, giving the remaining retail partners that still rely on the technology ample time to phase in chip card processing.

The decision comes as consumers have changed their payment habits to prefer newer, more secure technologies. Chip-based cards that feature microprocessors and contactless antennae are now widespread, virtually eliminating the need for the older magnetic stripe technology, which has steadily declined in use in recent years.

apple-card-front-back.jpg
The front and rear of Apple Card.

As a Mastercard, the Apple Card features a gray magnetic stripe on the rear of the card at the bottom, under the company's specification requirements. According to the current timeframe set out for phasing out the stripe, Apple and its partner Goldman Sachs can start to issue new Apple Cards without the magnetic stripe from 2027. Apple will be obliged to make the change by 2029.

Article Link: Apple Card to Lose Magnetic Stripe By 2029
 
Last edited:
Missed an entire generation of payments out there!

Magnetic Stripe
Chip and Pin
Contactless
Chip and Pin never came to the US.

We went Magnetic Strip -> Chip and Signature & Contactless (almost simultaneously.)

Chips were around in cards for a long time but pretty much nowhere used them until ~5 years ago aside from ATMs.
 
For me it’s the Apple “card” — did not get the physical object so … no magnetic stripe! 🍸😹 Gas stations… always contactless or I go somewhere else. 🍸😺 They are a notorious venue for fake card readers and number theft and apple
Pay spoils that — at least so far 🍸🐈
 
Oh yes. VERY common at gas stations. It's very uncommon for me to use contactless at the pump.
Around here, most gas pump card readers use the chip now. You still have to insert the card, but now you leave it in until the transaction is over.

I'm all for eliminating the stripes; it will force the last holdouts to fix/upgrade their readers when they start losing customers due to them not having cards with a stripe.
 
I honestly never use the magnetic stripe unless its a small mom and pop shop. Trivial to me. May stress out those small local stores though.
 
  • Like
Reactions: macsound1
I honestly never use the magnetic stripe unless its a small mom and pop shop. Trivial to me. May stress out those small local stores though.
Payment terminals aren't that expensive anymore. When compared to a typical small brick and mortar business operating budget, it's not a huge expense.

I have a feeling the payment networks will require upgraded terminals before stripeless cards are issued, in any case.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.