Chip cards, also known as EMV cards, are payment cards embedded with a small microchip. This chip securely stores data and generates a unique transaction code for each purchase, making it harder for fraudsters to clone the card. Chip cards can be used for in-person transactions by inserting them into a card reader, enhancing security compared to traditional magnetic stripe cards. In addition to in-person use, many chip cards also support contactless payments through NFC technology. Users can simply tap their card on a compatible terminal to complete a transaction quickly. This combination of security features and convenience has made chip cards a popular choice for consumers and businesses alike.