Chip card technology provides an additional layer of security when used at a chip-enabled terminal. The technology may help reduce certain types of fraud that can result from third-party or merchant compromise, but it will not prevent a compromise. Chip cards use dynamic information for each transaction that is verified by the card issuer making it more difficult to capture the customer’s card data and create new fraudulent cards that can be used elsewhere. Please review our merchant compromise FAQs for information about steps you can take to help protect your identity in the event of a compromise.