Chip Reader

A Chip Reader — also known as an EMV (Europay, MasterCard, and Visa) reader — is a specialized payment device utilized by merchants to access the information stored on the integrated chip within EMV cards.

EMV or chip cards offer superior security compared to traditional magnetic stripe cards, as they generate a unique transaction code each time the card is used. This makes counterfeit card production significantly more challenging.

When a chip card is inserted into a chip reader, the reader accesses the data embedded within the card’s chip, initiates the creation of the unique transaction code, and forwards this information to the cardholder’s bank for approval.