Disney delays chip and Pin switch

The European retail arm of Disney is due to complete an overhaul of its UK point of sale systems by late autumn, but it is not...

The European retail arm of Disney is due to complete an overhaul of its UK point of sale systems by late autumn, but it is not going to add chip and Pin compliance until February 2005. The decision means Disney will be liable for any card fraud in its stores for up to two months.

The move is part of a trend among mid-sized retailers to hold back from rolling out chip and Pin systems because of issues over time and cost, despite the fact that non-compliant stores will be liable for fraudulent transactions from 1 January 2005.

The Disney Store Europe is in the midst of implementing new point of sale systems across its 110 outlets in the UK, France, Spain and Italy, standardising on IBM EPS technology.

The systems should be in place by October, but the company does not want to add chip and Pin compliance - installing card readers and going through the lengthy accreditation process - over the Christmas trading period.

"We do not want staff, many of whom will be temporary, to be learning a new process over Christmas," said Mitchell Edmond, manager of IS at Disney Store Europe. "So we decided to implement in February and take that risk for a couple of months."

Edmond said many retailers were holding fire on chip and Pin roll-outs. "It is a massive task and it is hard to make the business case stack up," he said. "From a cost point of view, you have to treat it as if it is statutory."

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