Siân Harrington
More than three-quarters of grocery retailers are believed to be unprepared for the shift in card fraud liability from banks to retailers in two years time.
The move, which means retailers will no longer be able to charge back any losses from the fraudulent use of credit or debit cards, affects any face-to-face transactions.
Banks will be issuing 42 million consumers with new anti-fraud smartcards in what is being heralded as the biggest shake-up in UK payment since decimalisation.
Companies which run their own till systems with electronic funds transfer will be exposed to the £200m cost of UK retail fraud currently being absorbed by the banks.
Research by The Grocer shows only a few major chains are advanced with new chip and PIN technology that reads these cards and combats fraud.
Safeway, Tesco, Marks and Spencer and Spar are the furthest ahead, with Safeway the only grocer to have rolled out the technology. Tesco and Marks and Spencer have scheduled implementation dates while Spar is about to sign two contracts with solutions providers.
Somerfield said it was sourcing a solution and planned training, while Waitrose said it was developing plans but was "unable to discuss commercially sensitive information".
When peak Christmas and Easter periods are removed, it does not leave much time for choosing a solution, testing, rolling out and, most importantly, training staff and communicating to customers.
According to David Figg, IBM retail consultant, retail store solutions, 80% of grocers are behind the point they should be at this stage. Many retailers, including Sainsbury and Asda, appear to be waiting for the results of a national trial in Northampton between March and June next year.
But Spar IT controller Roy Ford warned of a bottleneck in 2004 when everyone rushed to test equipment, while Peter Forbes, Marks and Spencer manager, store financial operations, said it was "getting very late" for retailers without implementation plans. "The key is to minimise impact on customers. They must be handled in a consistent way and will need some hand holding. This is not a technology issue, it is a customer one," he said.
>>P36, Analysis
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More than three-quarters of grocery retailers are believed to be unprepared for the shift in card fraud liability from banks to retailers in two years time.
The move, which means retailers will no longer be able to charge back any losses from the fraudulent use of credit or debit cards, affects any face-to-face transactions.
Banks will be issuing 42 million consumers with new anti-fraud smartcards in what is being heralded as the biggest shake-up in UK payment since decimalisation.
Companies which run their own till systems with electronic funds transfer will be exposed to the £200m cost of UK retail fraud currently being absorbed by the banks.
Research by The Grocer shows only a few major chains are advanced with new chip and PIN technology that reads these cards and combats fraud.
Safeway, Tesco, Marks and Spencer and Spar are the furthest ahead, with Safeway the only grocer to have rolled out the technology. Tesco and Marks and Spencer have scheduled implementation dates while Spar is about to sign two contracts with solutions providers.
Somerfield said it was sourcing a solution and planned training, while Waitrose said it was developing plans but was "unable to discuss commercially sensitive information".
When peak Christmas and Easter periods are removed, it does not leave much time for choosing a solution, testing, rolling out and, most importantly, training staff and communicating to customers.
According to David Figg, IBM retail consultant, retail store solutions, 80% of grocers are behind the point they should be at this stage. Many retailers, including Sainsbury and Asda, appear to be waiting for the results of a national trial in Northampton between March and June next year.
But Spar IT controller Roy Ford warned of a bottleneck in 2004 when everyone rushed to test equipment, while Peter Forbes, Marks and Spencer manager, store financial operations, said it was "getting very late" for retailers without implementation plans. "The key is to minimise impact on customers. They must be handled in a consistent way and will need some hand holding. This is not a technology issue, it is a customer one," he said.
>>P36, Analysis
{{NEWS }}
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