Following info will help you decide which option to choose:

With Chip - You can track the number of pages printed. The printer will shows "toner low" and "toner out" message when it is time to install new cartridge.

Without Chip - You cannot keep track of pages printed using the toner cartridge. You do not see any alert messages such as "toner low" and "toner out". When you first install the toner cartridge your control panel will display "NON-HP toner cartridge detected." Push the large green "GO" button on the printer and the "Ready" message will display. You will only have to do this once for the life of the toner cartridge! Your printer will print and operate normally, but the "toner low" or "toner out" messages will not display. Reports from the printer's "home page" wiill not be available also. When vertical "white streaks" appear in your print your cartridge is running out of toner.Shake the cartridge as usual and continue using it until white streaks appear again. When this happens install a new toner cartridge.