Magnetic stripe readers function through magnetic induction, allowing them to read data from credit and debit cards. The discussion explores the practice of swiping cards encased in plastic bags, which some users find effective, possibly due to the bag protecting the card or cleaning the reader. Participants express curiosity about the origin of this method, speculating it may have evolved from earlier practices like using tape to repair damaged cards. While some links provide explanations, there is still uncertainty about the trick's popularity and effectiveness. Overall, the plastic bag technique is noted to work well until a replacement card is needed.