I am still somewhat amused at hearing it used to mean passing your credit or ATM card through a card reader at the supermarket or some ATMs.

Well, dear Faldage, I challenge you to come up with another catchy word to mean the same. If the cashier had to tell each customer "Please pass you card through the card reader" instead of "Please swipe your card" the service would be even slower than it already is (this being Newfoundland and all). It's almost onomatopeic. "Swwwp!" is more or less the sound made as you pass the card through.