Retailers are expected to resort to renting Chip and PIN-enabled PDQ terminals from the banks, because they stand little chance of meeting the deadline for updating their own till systems.
Card authorising PDQ devices are normally the preserve of smaller retailers, but according to Paul Mason, managing director of Paul Mason Consulting, larger tier two retailers - typically owners of between 50 and 1,000 tills - look likely to bring in this hardware as an interim measure, to avoid being stung by the liability shift on payment cards.
An insider at Barclaycard Merchant Services agreed: ‘We believe there will be a critical mass of retailers in mid-2004 wanting certification (for their Chip and PIN solutions) when it is too late (and there are no resources available).
They will have limited options available, so they may go back to PDQs. Retailers are looking at this as a contingency for the short term.’
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