Licensees who fail to use Chip and PIN technology are now liable for any credit card fraud on their premises.
The new regulations, which came into force at midnight yesterday (February 14), require that all customers use their PIN for transactions.
Licensees who fail to insist on this or use PDQ machines face the risk of being responsible for any loss of income.
However, licensees are also being made aware that there are always a range of people, such as disabled customers, who will still need to sign. In such cases publicans are being advised to use their PDQ machines and follow the prompts.
Paul Smith, director of retail service policy at the British Retail Consortium, says that licensees should not be turning away customers who should still sign.
"There are some important groups who can continue to sign and retailers should ensure that they don't turn these customers away," he said.
"Disabled customers with chip and signature cards, cardholders from overseas and UK cardholders waiting for a new Chip and PIN card to replace their old-style card should continue to sign.
"Our advice is simple. Don't question the card you are given but instead insert it into the terminal and follow the prompts. The terminal will tell you whether you should ask for a PIN or a signature."
Go to www.chipandpin.co.uk for more information.