Which feature of chip cards enhances security during transactions?

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Prepare for the Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Exam with flashcards and multiple choice questions. Each question includes hints and explanations to enhance your understanding. Get ready for your CCP exam today!

The feature of chip cards that enhances security during transactions is the built-in semiconductor for encryption. This semiconductor is part of a chip embedded in the card, which generates a unique transaction code for each purchase. This process significantly reduces the risk of fraud or unauthorized transactions because the information cannot be reused.

Unlike traditional magnetic strips, which store static data that can be easily copied and exploited, the dynamic data created by the chip makes it much more challenging for criminals to duplicate or forge transactions. The encryption capabilities of the semiconductor ensure that sensitive information is protected during communication between the card and the payment terminal, further reinforcing security.

The other options, while they may contribute in different ways to the overall design and authenticity of the card, do not directly enhance the security of transactions in the same manner as the chip's encryption. The magnetic strip can be easily cloned, holographic images are primarily for visual security, and logos help with branding but do not provide additional layers of transaction security.

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