American Veterinary Medical Association offers this video about microchipping
It's not only important to microchip both dogs and cats - I do stress both dogs and cats....people forget about cats, figuring they are indoors only. Surprising data reveals that indoor cats do, in fact, get out. When they do, some stand frozen like statues, others make a mad dash and others hide. Except for those cats in the first category they are not easy to recover.
The veterinarian in this video, Dr. Melissa Feltes, apparently prefers the HomeAgain Pet Recovery Service, as the pet is wearing a HomeAgain yellow tag. I prefer HomeAgain too because of all the 'perks' the pet recovery service provides, which includes a veritable army of volunteers to help recover lost pets (so you're not alone).
Most important, no matter what provider for that microchip you pick - always register. Without up to date registration when that pet is scanned, there's no way to associate the pet with you.