Almost nine in ten UK cardholders are uncomfortable when their card temporarily vanishes from view in restaurants, bars and gas stations, with 57 per cent of hotel guests having similar concerns. Chip and PIN-based payments will be invaluable in combating fraud at these retail locations, which, together with market stalls, represent the top five hot spots for credit card fraud. Fifty-five per cent to 63 per cent feared their card would be stolen or skimmed during use, according to MasterCard research, with over half distrusting market stall-holders, and one-third, not comfortable at restaurants, bars or gas stations.

Restaurants face a particular challenge in deploying chip and PIN payments systems, in that PIN pads will need to be brought to diners’ tables if a bill is being settled with a credit card. Wireless terminals with Bluetooth, WiFi or DECT links represent the best solution to this dilemma, or, alternatively a PIN pad that is fixed to a counter near a cash register. Many restaurateurs and retailers alike are uncertain how much upgrading to chip and PIN will cost, particularly if POS terminals are rented from an acquiring bank, but if this is the case, the bank should provide the new equipment at no extra cost.

Businesses renting POS equipment from a bank have been advised to expect lower transaction costs, but simultaneously, consumer groups in the UK are warning that banks and retailers will be less sympathetic to consumers if fraud does happen. As Stuart Cliffe, CEO of the National Association of Bank & Insurance Customers, says, consumers will be blamed for any fraud, due to the implication that they wrote down, or disclosed their PIN to a third party. With the Halifax building society finding one in five bank customers to have given their PIN to a friend or family member, the implications for chip & PIN security are serious.

(CNNfn)