Chip readers, also known as EMV readers, are devices that accept credit and debit cards embedded with a microchip. These chips enhance security by generating a unique transaction code for each purchase, making it difficult for fraudsters to clone cards. Chip readers are commonly used in retail stores, restaurants, and other businesses to process payments. When a customer inserts their card into a chip reader, the device communicates with the card to verify the transaction. This process is typically faster and more secure than traditional magnetic stripe readers. As a result, chip readers have become the standard for card payments in many countries, improving overall transaction safety.