A system is configured for authenticating a chip card interface device (CCID) during a transaction with the CCID. The system has a communication device configured for communicating with the CCID over a network and a processing device coupled with the communication device. The processing device is configured for receiving a transaction initiation communication from the CCID and instructing the communication device to communicate a request for authentication information including a random number to the CCID. The CCID encrypts the random number with a unique chip key (UCK) previously created with a master chip key (MCK). Then, the CCID communicates the encrypted random number to the system along with a serial number. The system recalculates the UCK using the serial number, encrypts a copy of the random number using the recalculated UCK and compares the encrypted copy with the encrypted random number received from the CCID to authenticate the CCID.