A transponder key operates using radio frequency identification (RFID) technology, which allows the key’s embedded chip to communicate with the vehicle’s immobilizer system. When you insert the key into the ignition or bring it close to the push-start button, the car sends a signal to the key’s microchip. If the chip responds with the correct code, the car allows the engine to start. This system prevents car theft by ensuring that only programmed keys can start the vehicle. However, if the transponder chip becomes damaged or stops working, a car key replacement is necessary to restore full access and prevent lockout situations. Without a working transponder, your car may not recognize the key at all, leaving you stranded at the worst possible time.