Magnetic Stripes are the choice of businesses that want to swipe a gift card or those that need to use their credit card processing system to process cards. Restaurants tend to use magstripes on gift cards, while retail stores tend towards barcodes.
There are two different types of magnetic stripes on the market. HiCo stripes are used for bank cards, hotel key cards and identification cards that need to be swiped hundreds of times. Gift cards are typically made with LoCo magnetic stripes. LoCo magnetic striped cards are brown in color and last for up to two years or 2000 swipes. The more expensive HiCo stripes are good for up to five years or 5000 swipes.
Magnetic Stripe cards should be printed with Human Readable Numbers in case the magnetic stripe is accidentally damaged or demagnetized.