Chip-and-PIN put on ice at Waitrose

Retailer suspends system while it resolves technical issues

Supermarket chain Waitrose was last week forced to suspend its chip-and-PIN credit card processing system because of technical problems.

The retailer is operating a temporary card payment authorisation system while it resolves the problem, but will be liable for any fraudulent transactions it processes in the meantime.

‘There have been problems with the card reader,’ a Waitrose spokeswoman told Computing.

‘Subsequently, problems have also emerged with the software associated with our interim chip-and-PIN system.

‘Because we do not want to inconvenience our customers, we have decided to suspend the system temporarily.’

Waitrose gave no further details about the nature of the problems.

‘This is a complex technology designed to bolt onto our existing point of sale system, so it is bespoke rather than off the shelf,’ said the spokeswoman.

‘Before we implemented our interim system, we piloted it in a number of branches.

‘None of the problems we are having at present emerged while the trial was under way.’

The retailer is working with card reader supplier Ingenico and software vendor Wincor Nixdorf to bring the system back up as soon as possible.

Waitrose is also due to update its electronic point of sale (Epos) systems in the next 18 months, to provide an integrated chip-and-PIN facility.

‘The Epos system is being piloted in two branches and is functioning well,’ said the spokeswoman. ‘The technical issues with our interim solution will not affect the rollout of this permanent system.’

Nick Gladding, senior analyst at retail researcher Verdict, said: ‘Although Waitrose has been slower to switch to chip-and-PIN than some of its competitors, it

is by no means alone. H&M and Bhs are still testing their systems, for example.

‘But the longer Waitrose leaves it, the more it exposes itself to covering the cost of any fraud now that this has become the liability of retailers.’

There is no legal requirement to install chip-and-PIN technology, but companies have been liable for fraudulent card transactions using non-compliant systems since the start of this year.