What chip is in a transponder key?
The RFID micro-chip is a device used to prevent theft. It sends a signal to the immobilizer, which then starts the car. If the digital serial number isn’t recognized by the immobilizer, it will not disengage itself. So basically, even if they could access the vehicle somehow or other – thieves would still be unable start it. For this reason programming must correspond with code that resides in cars’ systems. What chip is in a transponder key?

The chip inside key disengages immobilizer to let car start when right key is used.
Can I program chip keys myself? Most people ask this question but we don’t advise it. Reach out to an automotive locksmith professional who can program it for you.
Transponder Keys vs Non-Transponder Keys
The picture below shows two different types of keys – one has micro-chip while other doesn’t have any chips at all; hence they look dissimilar from each other. Programming is necessary before chip key begins working unlike metal keys.
How to know if your key has a Chip
Most auto manufacturers have incorporated transponder keys into their anti-theft system. However not all older model vehicles may come equipped with this feature yet some might not still be having these kind of safety measures at all even today so it’s better first establish whether your specific type falls under such category or not depending on its make year etcetera.
If you use a metal key to start your car, then it does not have a transponder.
Older non-transponder vehicles cannot be upgraded to use transponder keys because they do not contain built-in immobilizer systems. Conversely, if your car has chip key capability and is used with non-transponder keys, the vehicle will not start.
How much does it cost to replace a chip key? Why are they so expensive?
The price of transponder keys varies depending on the year make model. While this may be true that they are more costly than traditional metal ones, there’s also added functionality which comes at an additional expense. So yes – higher charges reflect increased security levels offered by these types of devices together with labor intensive programming processes too.