I'm sure apple will say they tested it but Id rather not take any risk. I'd keep anything with magnetic strips or data well away or shielded.

Technically, yes. However, it is not very plausible. The magnets used in the cover and the iPad itself have a very limited range of influence, and only in direct contact is the magnetic flux any appreciable strength.

What this means is that it is possible, but only if you repeatedly drag your credit cards magnetic strip across the magnets. This is the only way to reliably overcome the magnetic domains, as they are clustered together, making them more resistant to change.

Think of the bed of nails magic trick. The dude can lay on it without pain because the force is distributed equally. the same applies to clustered magnetic information on physical media.

However motel/hotel cards have a different information structure, and much less of it at that, and likely use a cheaper magnetic strip formulation.

In conclusion, just don't use your credit/bank card to pry the cover off!

I doubt it, I've never been able to demagnetize a credit card, and other than one cheap hotel room key, I haven't been able to demagnetize any magnetic strip. I think you'd need a) strong magnets b) to actually try

it can but it is unlikely. The strip on a credit card is a constant repeat of the credit card information over and over and over again. You would have to run the magnetic strip over the magnet to do damage.

Cept anyone with a rfid reader can copy the fob or card information and use it. It can be done with less than 50$ worth of equipment.

I managed to demagnetize a hotel key with my iPad once - but i doubt credit cards that easily affected.

Also, the magnets are in the iPad itself - not the covers.

As this iFixit article clearly shows, there are actually 21 magnets in the Smart Covers themselves. 10 in the iPad.

it is impossible to wipe a card with the magnets of the ipad/smart cover.

wiping cards with magnets was tested on the show "mythbusters" and they tried with extremely powerful electronic magnets, and didnt manage to wipe a card, i wouldnt be worried, at all.

Not only can it, but it already has. Plus just today I talked with someone who had their electronic motel key erased and they could't get in their room.

Isn't this common knowledge? Buy a ^$!& cover for your cards or use RFID cards... My fobs, cards are not affected because new technology is RFID.. And it's not new tech..

If your card is not working 99.999 % of the time it is the stores terminal. They are never maintained or cared for... Stop blamin mystical magnets for your cards. I'm at a hotel now.. My room key made love to the spline of my cover ... And no problems

If you really could mess up cards.. I would place rare earth magnets across the city and watch the banking industry fall at my hands... Muhhhahah ... You see how silly I sound.. That's how I feel after reading some of these answers

As a compliance officer and technology developer for the credit card and prepaid card industry, I can say with 100% c certainty that ANY magnetic device can affect the magnetic stripe of credit cards.

The magnetic stripe uses technology similar to that of a cassette tape. The magnetic stripe is coded with your card data. Like a cassette tape, if you place a card too close to any magnetic source you risk erasing some or all of the data.

Demo: http://youtu.be/si1MpUdyfKY

In case you don't have 30 seconds to watch the video, it only took one wipe.

It certainly does. I had to replace my credit cards already for a fourth time not knowing the reason for it, until I realized it was the magnet of the iPad cover.

Not only it has destroyed all of my credit cards, but also it has ruined my Kindle screen (and I am not sure if it can be fixed or have to replace the screen....)

This is the "only" problem I had with my iPad, and I will not give it up just fot that. I guess I will have to buy a shielded wallet for all my credit cards!

Yes, the Smart Cover on my iPad mini has managed to erase my work ID badge twice now, and it's such a hassle for both me and the IT guy who has to reprogram my badge.