“the info on the card strip is not encrypted??”
Nope, credit cards are not high-security. The system was designed before they could be scanned from a distance, so basically, it was assumed that only people you gave the card to could get your information. Times have changed.
Fortunately, you can protect yourself from this with one of those credit-card holders that is made of metal, or if you are cheap, just make a little pocket-folder out of tin foil and keep them in there.
You are confusing RFID with the magnetic strip. You cannot read a magnetic strip from a distance - for that you need RFID (Radio Frequency Identification Device).
A skimmer is a small, hand-held device that you slide the card through, just like the register - just smaller and intended for illegal activities.
http://www.cheapest-computer-hardware-software.com/credit-card-skimming-devices.html