The chip basically creates a brand new “temporary credit card number” with every transaction.
The bank is able to recognize the “temporary number” as legitimate, because they’re the ones who programmed the chip (and they have the fancy encryption key and all that fun stuff the complex answers went into).
So you you give that one “temporary card number” to the seller, who takes that to the bank and gets paid.
Even if someone were to get all the info from your transaction, that “card number” was a one time use thing, so it’s now useless.
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