Retailers not upgrading to chip and PIN technology will face a bigger risk of fraud according to Visa managing director Colin Grannell.

The technology requires customers to swipe a card and key in a PIN number - the banking industry hopes the change will help to cut fraud by up to 60 per cent. Most large chains are in the process of switching, as are smaller retailers which typically rent their equipment. Some mid-sized retailers are hanging on until the 2005 deadline.

Colin Grannell told the FT: "Fraudsters will soon work out which stores have chip and PIN and which don't. They find those weakest links and they will target them without a shadow of a doubt."®

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