A Chip Reader is a device used to read data from smart cards that contain embedded microchips. These chips store information securely and are commonly found in credit and debit cards, identification cards, and access control cards. The chip reader communicates with the card to authenticate and process transactions or verify identity. Chip readers enhance security by using encryption and requiring a personal identification number (PIN) for transactions. They are widely used in retail, banking, and secure facilities, making them an essential tool for preventing fraud and ensuring safe access to sensitive information.