Polarity effects in ionization chambers are caused by a radiation induced current, also known as Compton current, which arises as a charge imbalance due to charge deposition in electrodes of ionization chambers. We used a phantom-embedded extrapolation chamber (PEEC) for measurements of Compton current in megavoltage photon and electron beams. Electron contamination of photon beams and photon contamination of electron beams have a negligible effect on the measured Compton current. To allow for a theoretical understanding of the Compton current produced in the PEEC effect we carried out Monte Carlo calculations with a modified user code, the COMPTON/ EGSnrc. The Monte Carlo calculated COMPTON currents agree well with measured data for both photon and electron beams; the calculated polarity correction factors, on the other hand, do not agree with measurement results. The conclusions reached for the PEEC can be extended to parallel-plate ionization chambers in general.