A magnetic stripe reader including a magnetic reader head providing at least one data output, an F2F decoder receiving the at least one data output and providing a decoded data output, a microprocessor receiving and processing the decoded data output and power saving circuitry operative to control the operation of the F2F decoder and the microprocessor thereby to maintain the F2F decoder and the microprocessor in a power-saving sleep mode other than during magnetic stripe reading by the magnetic reader head and a selected time duration thereafter.