Feeds

Small.biz needs help with chip and PIN

Banking on the banks

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Banks are being urged to help more small firms embrace new point-of-sale terminals designed to eradicate credit card fraud.

The new chip and PIN system combats the use of stolen and counterfeit credit cards by requiring customers to tap in a four digit number when paying for their goods. It's currently on trial in Northampton but will be nationwide by 2005.

However, the Federation of Small Businesses (FSB) is concern that the many small traders do not realise that the new technology exists. It wants the banks, which typically rent their point-of-sale equipment to small firms, to help raise awareness. Businesses which do not have smart terminals by the start of 2005 will be liable for fraud.

The FSB also concerned at the costs that upgrading could entail and is asking banks to assist businesses which don't currently rent equipment.

In a statement John Walker, policy chairman for the FSB, said: "Businesses that rent their terminals from a bank should be okay but others could face substantial costs upgrading to the new system. In many cases they know nothing about these plans. We are calling on the banks to do more to promote chip and PIN in the coming months."

While welcoming the new technology as a way of combating a serious in-store problem for small firms, the FSB fears that the problem might simply be shifted to another section of traders.

"There is a real danger that as chip and pin takes off, fraudsters will just use the internet and telephone instead," warns Walker. "Chip and PIN are a great leap forward but the banks need to do much more to combat cardholder-not-present fraud."

© Startups.co.uk is the biggest independent small business site in the UK. It has more than 2500 articles covering everything from taking on staff to dealing with VAT.

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.