Not every machine has enabled it yet, but the merchant services provider is responsible for the damages of not facilitating the chip card. This operation would

Not every machine has enabled it yet, but the merchant services provider is responsible for the damages of not facilitating the chip card. This operation would not have been as successful if the only ATMs available were the off-branded machines found in the corner of bars. To answer your question though, I guess it would be possible, but they would need to skim the card data RIGHT at the time of card production in the personalization machine as it holds the proper encryption keys - nearly impossible. Banks typically don't do their own manufacturing (I don't know of any bank that does) and these systems are typically disconnected. This is worlds apart from what they actually did - dumping or generating mag stripe data, including the PIN Offset and writing the data onto cards like library cards, or hotel room cards. In addition, with EMV, the card is encrypted and verified using the issuer's public key, as well as the Certificate Authority's public key. Even further, Visa/Mastercard have their own multi-tier encryption that gets applied to the cards. I'm really getting over my head in the manufacturing process, but it is incredibly more complicated and secure than the old mag stripe days.