The document discusses the differences between chip cards and magnetic stripe cards. Chip cards contain a microprocessor that provides enhanced security over magnetic stripe cards. Magnetic stripe cards store data on a magnetic stripe that can be easily copied. Chip cards require a PIN for transactions and generate dynamic security codes for each transaction, making the data nearly impossible to copy. In contrast, magnetic stripe cards only require a signature for transactions and use static data that is vulnerable to theft. The document also notes chip cards process transactions faster than magnetic stripe cards.