With IPAD, encryption takes place within an encapsulated magnetic read head as the card is swiped eliminating the chance of intercepting clear text data. As a result, the data is never "in the clear," even for a few milliseconds. IPAD's data encryption scheme uses industry standard Triple DES and AES giving you the flexibility to manage decryption services yourself or via an outsourcing service, without the risk imposed by unproven, proprietary encryption algorithms. IPAD uses a 32bit security processor and has flexible data formatting and masking capabilities for maintaining compatibility with existing software.
Full specifications (PDF)
Manufacturer part number: 30050202