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- A credit card chip is a small microchip embedded in the card that collects, stores, and transmits credit card data between merchants, their customers, and participating financial institutions12. The chip provides consumers with additional security when making transactions at stores, terminals, or ATMs because they're harder to skim2. Each time you use a credit card to make a transaction, these chips generate a unique code that can only be used for that transaction1.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.What Is a Credit Card Chip? Credit card chips are small microchips embedded in the card that collect, store, and transmit credit card data between merchants, their customers, and participating financial institutions. Each time you use a credit card to make a transaction, these chips generate a unique code that can only be used for that transaction.
www.sofi.com/learn/content/credit-card-chip/Key Takeaways
- A chip card is a debit or credit card that contains an embedded microchip along with the traditional magnetic stripe.
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