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> ... wrap a garbage bag around it and Swipe it slowly (it doesn't work), ...

Garbage bag? You mean one of those paper thin plastic bags that many big cities in the USA have all but banned?

Does that actually help with the mag strip being read or was that a joke regarding the cards being complete garbage?

It's a real-world solution that is widely-known but not widely understood.

No idea if this explanation is legit, but I can anecdotally confirm that the trick has permitted a purchase in one case in my own direct experience.