Banks could struggle to meet a last-minute rush of chip
and Pin implementations by retailers, delegates at the Retail
Solutions show in Birmingham were told last
week.
Andrew Blatherwick, managing director at retail systems supplier
Alphameric, warned that a late surge in demand for accreditations
for chip-and-Pin implementations would stretch banks' ability to
cope.
His concern was echoed by Barclaycard UK, whose spokesman said that
if retailers applied for chip and Pin on mass, it could cause major
problems for the banks.
"Retailers need to act now to get accredited in time. Many have
left it to the last minute and we are trying to avoid them bunching
up," he said.
Apacs, the UK trade association for payments, agreed. With just six
months left before liability for fraudulent transactions passes to
retailers, the association also warned of the danger of log jams if
retailers delay their roll-outs until later this year.
The accreditation process can take up to two months to complete,
depending on the type and size of the retailer, and involves an
upgrade to the entire network infrastructure to achieve chip and
Pin compliance.
Medium-sized retailers could face most difficulties, as many
smaller retailers rent card validation equipment from their banks,
which are promising them chip and Pin-compliant managed
services.
Is chip and Pin a diversion?
Chip and Pin implementations and radio frequency identification
tags have deflected retail IT directors' focus from meeting
customer needs, said Fraser Davidson, director of retail and
distribution for northern Europe at IBM, at the Retail Solutions
show.
"The banks are forcing retailers to convert to chip and Pin,
but these changes do not affect the customer. The focus has shifted
from the customer to the basic plumbing of the IT systems," he
said.
But Colin Grannell, managing director at Visa UK, said chip and
Pin would enhance the customer experience and had many more
benefits beyond security.
"Chips are not just for fraud but to provide more services
offline, more self-service and give more payment options on one
card. We are very positive that we will see a return on investment
from chip and Pin," he said.