DEFINITION of 'Chip Card'
Also known as a smart card or memory card. A chip card is a plastic card that has a computer chip implanted into it that enables the card to perform certain functions. These could include financial transactions, security system access, and storage of medical or other records.
BREAKING DOWN 'Chip Card'
Credit and debit cards are chip cards, as are security key cards that grant access to restricted areas. Usually this type of card is easily replaceable in the event of loss or damage. Some chip cards (i.e. credit and debit cards) also require the use of a separate PIN number.