From: "Tim" 
Newsgroups: uk.finance
Subject: Re: ATM fraud and C&P
Date: Fri, 19 Nov 2004 18:53:38 +0000 (UTC)

> >> "Tim" wrote
> >> > Why is it stored on the magstripe, if the reader
> >> > doesn't bother looking at that to decide whether there
> >> > should be a chip or not - but simply tries to "talk"
> >> > to a chip anyway & ignores it if it gets no answer?
> >>
> > "Alex" wrote
> >> To instruct the terminal that this card has a chip on it in
> >> the event that a cashier tries to read the mag stripe first.
> >
> "Tim" wrote
> > And what will it do in that circumstance (when the chip
> > doesn't actually exist, even though the magstripe says it does)?
>
"Alex" wrote
> The chip will exist.  If there is no chip on the
> card, the service code will not say there is.

We have been talking about dodgy fraudsters simply "killing" the chip
(removing it, whatever) - and so using a stolen card using 'magstripe &
signature' instead.
In that case the chip *won't* exist.
And also the service code *will* say that there *is* a chip.