Here’s How Magnets Really Affect Your Credit Cards
I was recently given an adorable, kitschy magnet, and as I put it away in my wallet, I couldn’t seem to remember: Do magnets spell doom for credit cards? Many of us hold vague rumors about the potential dangers of magnets affecting the functionality of our credit cards. Let’s look at the relationship between magnets and credit cards and separate fact from fiction.
Magnetic stripes on traditional credit cards
Traditional credit cards have a magnetic stripe on the back that stores important information such as your card number, expiration date, and security code. This magnetic stripe is susceptible to demagnetization, which can occur due to prolonged exposure to magnetic fields (or physical damage).
When a magnetic stripe becomes demagnetized, the data stored on it may become damaged or unreadable. This means that card readers at stores or ATMs may have difficulty recognizing your card, which could result in declined transactions or other problems.
(Sidebar: This is why you were advised not to keep your hotel key card near your phone ; your phone is a potential source of exposure to magnets that render key cards inoperable.)
While it’s unlikely that daily exposure to weak magnetic fields will cause significant damage to your credit card, it’s still wise to exercise caution. Stronger magnets, such as those found in speakers, MRI machines, or certain industrial equipment, can pose a real threat to the integrity of your card’s magnetic stripe.
Additionally, mishandling or scratching the magnetic stripe can also contribute to demagnetization, as physical damage can destroy the magnetic particles storing your card data.
Solution for your card chip
To address magnetic stripe vulnerabilities, the credit card industry is moving to EMV chip technology . EMV cards (which stands for Europay, Mastercard and Visa) are equipped with a small embedded microchip that generates a unique code for each transaction, providing increased security and eliminating the risk of demagnetization.
Unlike magnetic stripes, these chips are not susceptible to magnetic fields or physical damage, ensuring your card data is safe and secure.
While magnetic stripes are still present on many credit cards for compatibility with older payment terminals, the EMV chip has become the primary method for processing transactions, greatly reducing the potential impact of magnets on your card’s functionality.
Protecting your credit cards
To minimize the risk of demagnetization and ensure the longevity of your credit cards, you should store them away from sources of strong magnetic fields and handle them with care. Do not store them near speakers, magnets, or other devices that generate strong magnetic fields, and do not physically damage the magnetic stripe.
As EMV chip technology continues to become mainstream, concerns about magnets affecting credit cards will become increasingly obsolete. However, it is always wise to exercise caution and follow best practices to protect your financial information and ensure smooth transactions.