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The project, based on IBM till systems and Ingenico card readers, will make Homebase the first non-grocery retailer to roll out the anti-fraud technology on a large scale.
From 1 January 2005, retailers without chip and Pin systems will be liable for all fraudulent transactions, rather than card issuers.
Barry Watkinson, business systems manager at Homebase, said he was keen to get the implementation done early, rather than rush it through with the deadline looming. "We have also received incentives from the banks," he said.
Homebase expects to cut the cost of each transaction and the number of chargebacks once the new system is installed, said Watkinson.
The retailer is making changes to its SAP-based back-office systems to accommodate chip and Pin, as payment records will change for the new format.