LoCo magnetic stripe cards are typically used in instances where the data on them is changed frequently, such as transit passes, gift cards, and hotel room key cards. The data stored on LoCo magnetic stripe cards is much easier to erase. These types of cards store information less securely than high-coercivity magnetic stripes.

Low Coercivity – LoCo stripes are encoded at 300 Oersted and are generally brown in color.Because information is harder to erase on HiCo cards, they are most common in applications where cards are swiped often and require a long life like access control, time and attendance, debit and credit card transactions, and driver's licenses. High Coercivity – Encoded at 2750 Oersted, HiCo stripes are generally black and store information on a more secure basis than low-coercivity magnetic stripes, due to the higher level of magnetic energy required to encode them.Magstripe readers read the data that is stored on high-coercivity (''HiCo'') magnetic stripes or low-coercivity (''LoCo'') magnetic stripes: Magnetic stripe readers are compatible with most ID software programs. The stripes may include information like access privileges, account numbers, or other cardholder details. A magnetic stripe reader (also referred to as a ''magstripe reader'') is a hardware device that 'reads' the information that has been encoded on the magnetic stripe on the back of a plastic card.

Magnetic stripe card reader software