Time is ebbing away for small retailers to insure themselves against losses due to payment card fraud. From the first day of 2005 retailers who have not installed Chip & Pin reading equipment will have to take full responsibility if they are the victims of fraud. From then on the banks will be taking a back seat.
Banks will refuse to accept any liability or offer any compensation to retailers suffering from fraudulent use of payment cards after 1 January 2005. Only retailers who comply with card issuers instructions under the new system will be covered.
This may come as a shock to some small retailers. Almost half of all retailers have still not converted to the new system and most of these are small independent traders.
The Forum of Private Business (FPB) is calling on banks and credit card companies to allow retailers more time to install Chip & Pin machines. The FPB claims that it has been difficult for smaller traders to make the transition because of a lack of resources and finance.
For fuller details on the benefits of Chip & Pin see previous stories in the Knowledgebase.
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Forum of Private Business