How are your details saved on your ATM card? How does the information reach the machine? Learn the complete process

RJ Kesari News Desk: Despite the increasing use of online payments today, the need for ATMs or debit cards hasn't disappeared. 

People use ATM machines to withdraw money from their bank accounts when needed, and some can even deposit cash through them. 

But have you ever wondered where your information is stored on your ATM card and how the machine recognizes it as soon as you insert it?

Let us understand in simple language what technology works behind the ATM card and how the entire system keeps your transactions safe.

What information is on an ATM card?

When we look at an ATM or debit card, we typically see information like the card number, name, and expiration date. 

But that's not all there is to the card. The card contains a chip, or magnetic strip, that stores important data related to the card.

This may include the card number, bank identification, card validity, and some important security information. However, your full bank account details or balance are not stored directly on the card.

How does a magnetic strip work?

Older ATM and debit cards used magnetic strips. Data is recorded magnetically on the black stripe visible on the back of the card.

When the card is swiped at a machine, it reads the strip and obtains the necessary card information. This information is then transmitted to the bank's system for further transaction processing.

EMV chip increases security

Most modern debit and ATM cards today use an EMV chip. This chip functions like a tiny computer and plays a vital role in enhancing security during transactions.

The EMV chip can generate a unique security code for each transaction. This is why chip cards are considered more secure than older magnetic stripe cards. This helps reduce the risk of fraud by copying card information.