The ANSI/ISO BCD Data format is format defines the data in encoding for Track 2. It uses 5-bits of data (zeros and ones) to create the character set. In reality, only 4 bits are used for character creation while the fifth bit is a parity bit that always leaves the character with an odd number of 1’s. Using this check, a reader can monitor its own read-accuracy (if it has an odd number of 1’s it assumes that a valid read occurred, if not then an error has occurred and the card must be re-swiped.
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