Researchers from Retail Logic, a provider of payment processing
software, visited 10 towns chosen at random to see if the new
payment technology was in use following the January 1st liability
shift. Banks will no longer cover the cost of a fraud committed
using a Chip & PIN card if it could have been prevented by the
shop using a chip and PIN card payment terminal.
While the financial community has successfully raised the
profile of card fraud and most consumers have at least one Chip
& PIN card, locations where the new technology is in use remain
in the minority.
Farnham topped the readiness list with almost two thirds of
retailers being protected, but of the 159 retailers checked in
Guildford, only 68 had Chip & PIN equipment. In Oxford, a
meagre 15 stores visited were found to be operational.
"What was disappointing was the number of familiar high street
names that are clearly still some months away from completing their
rollouts," said Retail Logic Marketing Director Mark McMurtrie. "If
you've got a stolen credit card, Oxford looks like the best place
to go shopping."
The stores visited in each town ranged from small retailers to
the largest national chains, operating across a wide range of
sectors. These included high-risk areas such as jewellery and
electrical goods as well as lower-risk groups like booksellers and
furniture shops. While overall small retailers appear to be
well-catered for with bank-owned terminals, the mid tier remains
exposed, along with some larger operations with incomplete
installations across their estate.
Retail Logic found that high risk sectors such as jewellers have
clearly heeded the warnings and upgraded, but a significant number
of small retailers said that their bank-owned installations were
either not yet connected or were posing operational difficulties
including unacceptably-slow transaction times. Another area found
to be at considerable risk was the hospitality area, where
integrated PoS (Point of Sale) wireless technology is only just
coming on stream due in part to delays in finalising procedures for
handling transaction types such as bar tabs.
"It is clear from the survey that mid tier retailers have held
back due in part to a lack of integrated systems suitable for
them," said McMurtrie. "But perhaps the most disturbing survey
finding was that the financial services sector has yet to implement
Chip & PIN on its own high street counters. After years of
banks and building societies extolling the virtues of Chip &
PIN to retailers and their customers, it's time for them to put
their money where their mouth is."
One mid tier retailer yet to implement Chip & PIN commented:
"What's the point of me spending good money to prevent crooks
buying goods in my store with stolen cards when they can simply
walk into a high street bank and withdraw cash over the counter by
forging a signature?"
