There is no intelligence in the punch: 80 wires from the computer drive 80 electromagnets in the punch, punching a row of the card at a time. The punch supplies -20 volts to the electromagnets and the computer pulls the appropriate wires to ground at the right time. 3/9
The electromagnets aren't powerful enough to punch the hole. Instead, a powerful electric motor drives a metal "bail", stopping just before the sharp punch. The electromagnet holds an "interposer" tab in between, causing the bail to force the punch through the card. 4/9