If you manage a parking operation that accepts credit or debit cards, there's a change worth planning for now: magnetic stripe cards are being phased out of the US market.
What's Changing — and When
In 2021, Mastercard announced a formal timeline for eliminating the magnetic stripe. Starting in 2027, US banks will no longer be required to issue Mastercard cards with a magnetic stripe. By 2029, no new Mastercard cards will be issued with one. By 2033, magnetic stripes will be gone entirely from cards in circulation. Visa has not published an equivalent timeline, but the direction across the industry is clear.
Why This Matters for Parking Terminals
Most pay stations in operation today were built around magstripe readers. When stripe-less cards begin entering circulation after 2027, a terminal that can only read a magnetic stripe will have nothing to read — meaning a failed transaction, a frustrated parker, and lost revenue at the machine. Municipal procurement cycles and budget approval processes mean operators who wait until the problem shows up at the terminal will already be behind.
The Case for Upgrading Now
Beyond future-proofing, there are practical benefits to upgrading to EMV today:
Reduced fraud liability. Under the EMV liability shift, non-EMV terminals bear responsibility for counterfeit card chargebacks. EMV shifts that liability back to the card issuer.
Better experience for parkers. Chip and tap-to-pay are the default expectation for most consumers. EMV readers also support Apple Pay and Google Pay.
Simplified PCI compliance. EMV with point-to-point encryption reduces PCI DSS scope and eases the administrative burden on municipal staff.
Potentially lower transaction costs — in some instances, EMV transactions carry lower interchange rates than magstripe transactions (depending on your credit card provider)
The Upgrade Is Simpler Than You Might Expect
For municipalities operating Flowbird pay stations, most existing terminals can be upgraded in the field — no full replacement required. The Flowbird M1000 chip reader and A1000 contactless antenna can typically be installed in 30 to 60 minutes, scheduled during off-peak hours to minimize disruption. As always, we’re available to discuss upgrade options and process details for any current or prospective customers that would like to discuss this topic further.