Which type of card stores authentication data?

• A. Magnetic stripe
• B. Smart
• C. Both magnetic stripe and smart
• D. Neither magnetic stripe nor smart

Answer: (C)

Authentication data can be stored in different card technologies, not just one type. A magnetic stripe card carries data encoded on the stripe that readers can read to verify the card, so it stores authentication-related information such as identifiers or credentials used during access. A smart card, on the other hand, has an embedded chip with its own memory and processing power, allowing it to store cryptographic keys and credentials securely and perform authentication operations (like challenge–response) with the system. Because both can hold data used to verify identity, both types store authentication data, even though the smart card does so with greater security and capabilities.