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In such a card the information is coded on the magnetic stripe that is physically located on the card. This technology is same as used in credit cards. Since this is a trusted and inexpensive technology these cards are in maximum use. Magnetic stripe cards require that the card is swiped in the reader. This constant swiping can cause wear and tear and thus a shorter life span. The cards are low in cost but can be duplicated (not easily though), are affected by outside magnetic fields, and the readers require occasional cleaning.

The information on the magnetic cards can be altered by use of specific equipment.

For non-alterable magnetic cards, the Magnetic Slug type card or Barrium Ferrite cards can be used.