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This conversion enabled the 360 computer to monitor and control the entire production process the IRD engineers designed and built. This tightly secured area with limited access was required because of the sensitivity of the data that would ultimately be used to encode and emboss the credit and ID cards.The engineering design/build effort was carried out in a raised floor secured area of IBM IRD in Dayton, N. The IRD engineers first had to develop a reliable process of hot stamping the magnetic stripe to the plastic cards.Magnetic recording on steel tape and wire was invented in Denmark around 1900 for recording audio.In the 1950s, magnetic recording of digital computer data on plastic tape coated with iron oxide was invented.

The magnetic stripe was encoded with a single track of data utilizing the IBM Delta Distance C Optical Bar Code format. The IBM group in Raleigh was competing with RCA, Litton-Zellweger and other companies who were working with the National Retail Merchants Association NRMA to develop a standard optical bar code to be used in the retail industry.This engineering effort resulted in IBM IRD producing the first magnetic striped plastic credit and ID cards used by banks, insurance companies, hospitals and many others. on Aug 12, 1969 to head up this engineering effort. The IBM 360 computer was for scientific/business applications so the IRD engineers first had to convert the 360 into a "process control computer" and then develop software and hardware around it.Another result of this project was that IBM IRD and IBM Data Processing Division announced on February 24, 1971 the first Magnetic Credit Card Service Center and the IBM 2730-1 Transaction Validation Terminal. Other members of the group were David Morgan (Manager), Billy House (Software Developer), William Creeden (Programmer), and E. Due to the limited RAM, the software was developed in 360 Assembler Language.A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card.The magnetic stripe, sometimes called swipe card or magstripe, is read by swiping past a magnetic reading head.

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