In a bid to eradicate credit card fraud, a pilot scheme has been launched in which shoppers tap out a pin number to confirm their purchase.

Forum Response: Federation of Small Businesses

John Walker, FSB policy chairman, said: "Businesses that rent their terminals from a bank should be okay but others could face substantial costs upgrading to the new system. In many cases they know nothing about these plans.

"We are calling on the banks to do more to promote chip and PIN in the coming months."Cardholder not present crime is a big growth area for fraudsters and shot up by 15 per cent last year.

"There is a real danger that as chip and PIN takes off, fraudsters will just use the internet and telephone instead.

"Chip and PIN cards are a great leap forward but the banks need to do much more to combat cardholder not present fraud."

Forum Response: British Retail Consortium

David Smith, director of corporate affairs at the British Retail Consortium, told ePolitix.com: "This is the biggest communication exercise undertaken by banks and retailers since the introduction of decimalisation 30 years ago."We are seeking to engage with as many as retailers as possible and we would encourage them to make sure they open negotiations with their merchant acquirers at the earliest opportunity.

"We would encourage the FSB to bring its members up to speed as quickly as possible about the looming liability shift and the impact it will have upon them.

"We encourage all businesses to look at the Chip and PIN website and talk to the project management organisation are who running this project."