No more swipes: Mastercard is ditching magnetic stripes
From chip-and-PIN to contactless payment, credit card technology has improved dramatically in the last decade. In the interest of protecting consumers' personal information, it's no surprise that these developments have increased in cadence as data breaches have been more common than ever before.
Following this wave, Mastercard will no longer require magnetic stripes on most of its debit and credit cards starting in 2024 — beginning the migration with new payment cards in the network's European market.
Here's the timeline that Mastercard expects to eliminate its magnetic swipe technology, which dates back to the 1960s.
- 2027: In the U.S., Mastercards with chip technology will no longer be required to come with a magnetic stripe.
- 2029: No new Mastercards will come with a magnetic stripe, save for the prepaid cards in the U.S. and Canada.
- 2033: There will no longer be Mastercards with magnetic stripes on the market altogether.
These changes are incremental for a reason. Although two-thirds of merchants already accept contactless payments, merchants will have more than a decade or so before magnetic swipes disappear altogether. Fortunately, these new payment technologies don't require any additional legwork to implement, making this transition as seamless as possible.
Ultimately, this move protects merchants and consumers from security risks, and this is likely a trend we'll find with other payment networks. For example, 45% of all in-person transactions were made through contactless payments, so it only makes sense that the magnetic stripe will be phased out as we seek alternative options.
As technology advances, we already see new concepts such as biometric cards that confirm the cardholder's fingerprints as another way to level up security.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.