Major retailers, including Allders and Blacks, are holding off from implementing Chip and PIN because of the cost involved.
According to Retail Knowledge Bank's IT in Retail report, which surveyed 100 leading chains, 8 per cent had no plans to execute the programme. A further 11 per cent were undecided about whether to adopt the system.
Reasons given were varied, but included 'low credit transaction levels at the moment, or low transaction values', which means that the associated investment is not worthwhile.
According to the report, Blacks said that Chip and PIN would not be put into action unless a cheaper solution can be found that fits the retailer's existing EPoS systems. Allders said it had been evaluating Chip and PIN, but has axed the project because of cost.
Other retailers not bowing to Chip and PIN include Londis. The retailer does not plan to use the system within the next three years because of its low number of credit card transactions. Clinton Cards cited the same reason.
H&M, Jessops and Holland & Barrett have all yet to develop implementation plans.
Chip and PIN is being rolled out nationwide. New credit and debit cards are being issued following the system's trial in Northampton earlier this year.
In 2005, retailers that have not adopted Chip and PIN will become liable for card fraud costs. A spokeswomen from APACS said: 'If retailers decide not to implement Chip and PIN, they should take that decision very carefully.
They will be liable for fraud.'
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