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Answer:
All credit cards, along with many identity cards and access cards, have a magnetic strip on their reverse side which contains information about the card and card holder. Such cards are susceptible to damage or get demagnetized if anything magnetic comes in contact with it. Contact with a magnetic field erases the information by realigning the iron particles. Common demagnetizing agents include CDs, DVD's, speakers, cell phones, magnetic clasps on wallets & purses, security screening machines, pads used to deactivite security devices in new books and even small magnets like those used on the fridge.
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