My memory is hazy on this but I believe there is a bit on the magnetic stripe that says "hey, I have a chip please use that instead". And if the terminal suppor

My memory is hazy on this but I believe there is a bit on the magnetic stripe that says "hey, I have a chip please use that instead". And if the terminal supports chips it will probably ask you to use the chip instead. If the terminal does not have a chip reader (or doesn't parse that information) it will allow the purchase. If you are cloning the magnetic stripe you would of course reset that bit and you would be all good.