Based on a Bargaineering post, this method is designed to destroy the magnetic strip and any identifying information on the card at all. The cuts are placed to obliterate not only the magnetic strip, but the embossed name and card number.
We can’t help but wonder: is this worth the effort? Isn’t it more fun to hack the card into random pieces, making sure to cut through all text? This is all too methodical. Where’s my blender?
In all seriousness, how do you destroy your deceased cards? (Crosscut shredder with a card slot, here.)