A vendor puts cardholder information into a chip by sliding a payment card through a...

 Card personalization is the process of transferring cardholder information, such as account number, name, expiration date, and other data, to a payment card. This can be done by various methods, such as magnetic stripe encoding, embossing, laser engraving, or chip programming. Chip programming is the method of personalizing a card that has an embedded microchip that can store and process data. Chip cards can support contact or contactless transactions, depending on the chip type and the terminal capabilities. Contact transactions require the card to be inserted into a reader, while contactless transactions use radio frequency (RF) communication between the card and the reader. The vendor in the question is performing card personalization by programming the chip and verifying the data on the card. References:

Payment Card Industry (PCI) Card Production and Provisioning – Logical Security Requirements, Section 1.1.1

Payment Card Industry (PCI) Card Production and Provisioning – Physical Security Requirements, Section 1.1.1

Payment Card Industry (PCI) Card Production and Provisioning – Glossary of Terms, Abbreviations, and Acronyms, Definitions of Card Personalization, Chip Card, Contact Card, and Contactless Card