Some History:
Before the System /3 there was the System 3000
The 96 column card (like the system /3) didn't appear out of nowhere but is based on the System 3000 design developed in Böblingen in the early 1960s. The System 3000 was intended as a very low end machine. It introduced an 240 column punch card half the size of the standard one, to be seen on the left side of this picture:
(image taken from here)
This half size 240 column card shows already all features of the later 96 column card:
- Encoding (see below) of three characters within a column
- as 4 groups of 6 holes
- three of them holding a character each
- the fourth combining two 'overflow' bits per character if needed
The system 3000 suffered from problems with its card devices (and possibly a certain 'not invented here' syndrome in Rochester).
Rebirth as 96 column card
While the System 3000 was cancelled in 1964 (?), the idea of a smaller, more capable punch card lived on. In fact, the System /3's 96 column card follows the System 3000'S card in all but mechanical definition. While being smaller, it had only 32 physical columns, spaced wider than the System 3000 card but at the same time with smaller holes. It's safe that this was to get around the mechanical problems that killed the System 3000.
How to encode 3 characters in 4 groups of 6 holes
*1 - As in 'real new super high tech 30% more efficient'