Did they change the cards? The last metal Chase card I had still had embossed numbers, although they were smaller and on the back. They'll imprint on a manual card reader. You can get Chase to send you a plastic one for free, though. I did that after my metal CSR got stuck in a gas pump and my account seems to be flagged so that now I always get plastic without asking.
At any rate, that language is definitely boilerplate--it's been in nearly every rental agreement I've had in Europe. Most rental locations don't actually care because they place their hold electronically, but the parent company includes the language for the benefit of the few locations still using a "knuckle-buster" for cards.