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Your Guide to Replacing a Transponder Key If youve ever found yourself in the unfortunate situation of losing or damaging your transponder key you know just how stressful and frustrating it can be. This blog post will walk you through what you need to know about replacing your transponder key from understanding what a transponder key is to the different options available for replacement. What Is a Transponder Key. A transponder key is a type of car key that has an electronic chip embedded in it.