How does magnetic stripe work?
user
The magnetic stripe has some lines of tiny magnetic particles on it.
assistant
How does magnetic stripe work?
user
Your question seems to focus on how a credit card works. I’m not sure which details are most interesting to you, so I’m just going to go through the basics: 

All credit cards have a magnetic stripe on them, which consists of a thin magnetized strip along one side. This strip can store information, such as your name, account number, expiry date, etc. Credit cards are really a kind of “electronic wallet” in this sense, and in order to use it you just need to touch it to a special reader. A little window will pop up, which lets you swipe the card through it.

The reader uses the information stored in the magnetic stripe to determine if the card is valid and should be accepted. In order to do this, it will first contact a central server over the internet, which validates the card and returns the amount of money on it. This transaction fee is what the store pays each time you use your card, and this helps keep the cost of a product relatively low.

Of course, not all credit cards have magnetic stripes, but that’s the most basic kind.
assistant
How does magnetic stripe work?