A card reader has an opening at the base thereof in communication with the card insertion slot and forward of the IC contacts of the contacts carriage. When foreign materials such as coins are inserted into the card passageway, they are discharged through this bottom opening without contacting or causing damage to electronic contacts and without building up in the reader. Further, a blocking mechanism for the card passageway prevents foreign material such as coins from being inserted. When a read head senses the magnetic swipe of a card as the card is initially inserted, the blocking member is pivoted out of the way.