Damaged chip on new Credit Card

On 12.1.16 I collected my renewal Creditcard from the Randridge branch. The gentleman serving me at the inquiry desk told me, that , if I keep the same pin, I do not need to encode the card, I gave him my old card to cut up. So I went shopping with my new card, and to my utter horror, the card was not accepted by the merchant's machine. I went back today to report the card, and after testing it, the lady attending to me (no nametag) at the same counter told me, that my chip was damaged, and I needed to apply for a replacement car, and she snipped up my card, without asking. <br> Surely, the chips should be checked on the Creditcard before it is been issued to the client? i have wasted precious time and energy not to mention my embarassment when i could not pay for my purchase with my brand new card!