Retailers need more time for Chip and PIN

High street banks and credit card issuers need to give retailers more time to install Chip and PIN card machines.

The Forum of Private Business (FPB) has urged them to extend the deadline after a survey found that 47 per cent of retailers would not be able to install Chip and PIN machines before January 1 2005.

Yet if publicans don't have Chip and PIN machines by this deadline and accept a fraudulent payment - it will be up to them to cover the cost.

FPB's senior research spokesman, Jim Redman, said: "We call on the credit card issuers to see sense and extend the transition period for businesses to install these new machines.

"We have been campaigning hard for more secure methods of payment and warmly welcome the introduction of Chip and PIN. Nevertheless, we feel the banks are forcing the pace and the January 1 deadline should be put back."

He highlighted that small businesses were at a disadvantage because unlike the bigger companies, they do not have the manpower or financial resources of the bigger retailers and would not be able to comply with important changes.

"Banks cannot rest on their laurels and expect small businesses to fall into line with Chip and PIN. They need to provide effective guidance on how to install the new system and what its costs are.

"Moreover, there needs to be a better publicity campaign to raise awareness that failure to install Chip and PIN means retailers become liable for fraudulent payment - on credit and debit card transactions in their store."