Retailers urged to act fast on upgrade to chip cards

The old machines need to be replaced by new and more secure technology before fans arrive for the Rugby World Cup. Photo / Martin Sykes

It is estimated a quarter of retailers have yet to upgrade Eftpos machines to accept the new "chip" cards currently being issued by all banks.

The old machines, which only accept "swipe" cards, are being replaced with the new technology, which makes it harder for criminals to copy the cards.

Many international credit cards use the new chip cards, and the move is designed to bring New Zealand into line with global security standards.

However, there are fears retailers will not have the new technology in place before rugby fans arrive for September's Rugby World Cup.

Paul Whiston, spokesman for Paymark, which processes about 75 per cent of the country's electronic transactions, said retailers who continued to use the old machines would find themselves unable to do business using electronic transactions after the cut-off date of May 31.

"We're urging people to get it done sooner rather than later just in case there are last-minute logistical issues.

"I think people are saying 'I'll leave it till the last minute'.

"The upgrade is needed by approximately a quarter or 35,700 of New Zealand's merchants.

"Anecdotally, we think some retailers have become complacent or are trying to defer the cost for as long as possible, which is why Paymark and the banks have set a firm date for sunsetting terminals."

Whiston was expecting a big increase in upgrades in April and May, but was confident there was enough hardware in the country to cope with last-minute demand.

"Paymark as an organisation has a concern that there will be a number of merchants that have left it too late and they run the very high risk that they will not be able to use Eftpos in their business because their technology is non-compliant.

"It's not good for the consumer ... and it's not good for the industry when we've got a lot of visitors coming in for the World Cup whose cards require the latest technology to enable them to purchase goods and services."

The cost of the upgrade is between $1200 and $2000, with finance options available for retailers.