Chip-and-PIN deadline race is on for Waitrose

Supermarket continues to suffer transactional problems with system

Supermarket chain Waitrose is confident its chip-and-PIN systems will be operational before a critical deadline next month, after technical problems forced it to suspend the system six weeks ago (Computing, 8 December).

From 14 February, all chip-and-PIN cardholders will be required to use PINs and not signatures.

The retailer has yet to resolve the technical problems, and says it will not resume use of chip-and-PIN until all of the problems have been ironed out. At present it is unable to process any transactions using chip-and-PIN.

‘We are still working with the system suppliers to resolve technical issues, and we will not re-introduce the system until it is fully operational,’ a Waitrose spokeswoman told Computing.

The firm will not give details of the problems, but last month said the system is temporary and bolts onto its point-of-sale infrastructure, which is due to be overhauled later this year.

Integration issues are likely to be the cause of the unresolved problems with the Waitrose chip-and-PIN system, according to experts.

Clive Longbottom, service director at researcher Quocirca, says problems with the supermarket’s existing back-end, transactional systems may have been a catalyst for its system failure.

‘It sounds as though there are some deep integration issues in its back-end credit card systems, which meant it had to bolt on an interim chip-and-PIN solution. Trying to resolve two issues with one system will make it more difficult to manage,’ he said.

Nick Gladding of retail analyst Verdict said: ‘It is surprising it has taken this long for Waitrose to resolve this problem, but it has had Christmas to contend with.’

Lindsay Robertson, managing consultant at PA Consulting Group said: ‘I think the prime reason for the system’s failure is that bolt-on integration has fallen apart somewhere.’