Retailers must implement chip and Pin technology quickly or
risk being out of pocket, according to the British Retail
Consortium.A trial of the technology, which had been
going on in Northampton since May, had been a success. “The main
thrust of the trial was to see how customers reacted to chip and
Pin,” said Steve Sinclair, communications director of the chip and
Pin programme.
“We already knew that the technology worked
but we wanted to see the technology in action, test getting the
certification and approvals processes right and iron out any
detailed configuration bugs".
The chip and Pin initiative aims to halve card
fraud with banks and retailers planning a nationwide rollout of the
technology at the end of 2004.
However, the BRC warned retailers who own
their own integrated point-of-sale equipment not to delay
implementing chip and Pin.
David Smith, corporate affairs director at the
British Retail Consortium, said, “They must act now to meet the
2005 liability shift date, when retailers become liable for fraud
on chip and Pin cards in their stores which could have been
prevented by using chip and Pin point-of-sale technology.
“The trial showed that time is a crucial
factor and allowing enough time for planning, testing, approvals,
training and implementation is crucial to success.”
More than 200,000 new-style credit and debit
cards have been issued in Northampton with around 1,000 outlets,
including shops, restaurants, pubs, hotels and petrol stations
taking part in the trial.
Hazel Blears, Home Office minister for crime
reduction and policing, said, “I am pleased that so many retailers
as well as the banking industry have already committed themselves
to introducing it. With the support of the rest of Britain's
retailers we can step up the fight against crime. “
Lessons for retailers identified by the report
include:
- The need to engage software and hardware suppliers early
- A good two-way relationship with acquiring banks is
crucial
- Allowing enough time for testing is key to success
- Retailers should consider the needs of people with disabilities
early in the process
- Chip and Pin is quick for retail staff to learn
- Cardholders learn quickly and trial experience suggests that by
their third transaction they are competent and confident.