How Does Information Get Stored in a Credit Card?

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The information in a credit card is stored electronically through a magnetic strip on the back of the credit card. Discover how information is stored in holograms on the front of credit cards with help from a registered financial consultant in this free video on credit and personal finance.

Part of the Video Series: Credit & Personal Finance
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Video Transcript

This is Patrick Munro financial adviser talking about how does information get stored in a credit card? Credit card technology has grown over the years to the point now where electronics is everything on credit cards. There are in fact magnetic strips on the back of the credit cards and holographic designs on the front of credit cards that contain a lot of information about the consumer and once that card is swiped through the electronic terminal at the source of the vendor this information is transferred to a variety of sources. It is transferred to the vendor for the payment of the goods and services and it is also transferred to the credit reporting agencies so that they know you have incurred a fresh debt as well so there is a lot of reporting that goes into a credit card and as a result it is important to not use credit cards in an irresponsible way because this information about you is getting out there. It is also important to keep your credit cards and all the information they contain about you in a safe place because an emerging trend in 2009 and beyond is identity theft so information is power and you want to make sure you keep yours to yourself and secure. This is Patrick Munro talking about how does information get handled in credit cards.

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