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How to Use Automotive Keys Properly There are a variety of styles of keys for cars. Some have transponder chips inside their heads, whereas others are flat and function mechanically through grooves on the tops and bottoms. The first car keys were simple to duplicate, however manufacturers later introduced a chip that stored a unique “password” for your car. This is an extra layer of protection against theft. Transponder key A transponder or chip key, is a specific car key that has an electronic microchip