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Originally Posted by bob_builder
I think Tesco have a chip reader at the bottom of their till swiper. I think they do this to speed up the transaction as it both swipes the card and reads the chip in one go. The fact that you entered your PIN proves that the chip was being used as it does not work with the magnetic strip.
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It also enables say a Tesco Visa card to be read as 1. The clubcard (magnetically) 2. The C&P payment card (chip).