Swiped Card Transaction

A Swiped Card Transaction is one in which the customer’s card is physically swiped through a card reader. The reader captures the data from the magnetic stripe on the card, including the card number, expiration date, and CVV.

Swiped transactions typically require the card to be present, and may be considered lower risk than keyed-in transactions, where the card information is manually entered into the payment system. This is because the physical presence of the card at the point of sale reduces the likelihood of fraud.

However, magnetic stripe transactions are becoming less common as more secure payment methods — like chip cards and contactless payments — become more widespread.

Chip cards, which contain an embedded microprocessor, offer better security by generating a unique code for each transaction that cannot be reused. Contactless payments — which use Near Field Communication (NFC) technology — offer the convenience of tapping the card or mobile device on a reader without the need for physical contact.

Despite these advancements, swiped card transactions are still used in some regions and industries, and merchants need to have the necessary equipment and security measures in place to handle them safely.