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in the same way that all Visa cards are blue, white and gold. Even the magnetic stripe
specification adopted for the new MasterCard now embraces an element introduced by
Visa’s three digit service code in the discretionary datafield of track two. With this code,
it will be possible to determine if a card from one country many be used ... in another
country. D. Sean Miller, Interbank Senior Vice-President, told EFT Report: ‘the real
reason it’s there is that it would be very difficult to put it in later’.”
According to the October 26, 1981 issue of Business Week, Russell E. Hogg, President of
MasterCard International, Inc. predicted: “Within five to seven years, there will be more debit
cards in America than credit cards.” An article in Time magazine, September 29, 1980 reported:
“It looks and feels like a credit card, payment takes place instantly. A computer deducts funds
from the shopper’s bank account and transfers them into that of the store or restaurant where
purchases have been made...” The cover of the January 18, 1982 issue of Business Week,
depicted a single debit card for nationwide electronic banking. The accompanying article said:
“One month ago key executives from a dozen of the largest U.S. and Canadian banks flew to a
secret meeting at Chicago’s O’Hare Hilton Hotel to form a joint venture that would create the
first National Retail-Banking Network ... the new networks should be far more powerful than
Visa and MasterCard because they will operate with the debit card.”
One of the reasons being given to move towards the cashless society, is the effect it would
have on crime. An attorney wrote in the American Bar magazine: “Crime would be virtually
eliminated if cash became obsolete. Cash is the only real motive for 90% of the robberies. Hence
its liquidation would create miracles in ridding earth’s citizens of muggings and holdups.” A
cashless society would also eliminate extortion and blackmail for money; and the purchase of
illegal contraband, such as drugs and untaxed alcohol. However, it’s obvious that the real reason
for going cashless is that the population can be monitored, controlled and manipulated.
On the reverse side of all credit and debit cards is a 1/2” X 3” magnetic stripe, which is called
a ‘magstripe’ and contains three tracks (each about one-tenth of an inch long):
Track 1 is 210 bits per inch (bpi), and holds 79 6-bit plus parity bit read-only characters.
The information is contained in two formats– (A) Reserved for propriety use of the card
issuer; (B) Start Sentinel (1 character), Format Code=”B” (1 alpha character), Primary
Account Number (up to 19), Separator (1), Country Code (3), Name (2-26), Separator
(1), Expiration Date or Separator (4 or 1), Discretionary Data (enough characters to fill
out remaining maximum capacity of 79 character), End Sentinel (1), Longitudinal
Redundancy Check Character (1)
Track 2 is 75 bpi, and holds 40 4-bit plus parity bit characters. The format was developed
by the banking industry– Start Sentinel (1 character), Primary Account Number (up to
19), Separator (1), Country Code (3), Expiration Date or Separator (4 or 1), Discretionary
Data (enough characters to fill out remaining maximum capacity of 40 character), End
Sentinel (1), Longitudinal Redundancy Check Character (1)
Track 3 is 210 bpi, and holds 107 4-bit plus parity bit characters. It is a read/write track
which includes an encrypted PIN, country code, currency units, and amount authorized,
but its use is not universal among banks.