Homebase goes nationwide with chip and PIN

DIY chain Homebase is to install new fraud-busting payment technology across its 300 UK stores in preparation for the replacement of magnetic stripe bank cards by 2005.

Homebase was one of the stores that took part in the Northampton 'chip and PIN' trials earlier this year where people were issued with the new smart bank cards that use PIN authorisation at checkouts instead of a signature.

It is the first non-grocery retailer to commit to a national roll-out of the technology and IBM has been chosen by the company to install the new point-of-sale systems. Supermarket chain Safeway was the first retailer to go with chip and PIN, which aims to cut the UK's £425m annual plastic card fraud bill by up to 70 per cent.

IBM will install 3,000 chip-card compliant terminals at Homebase's 300 outlets in readiness for customers using the new Europay Mastercard Visa (EMV) compliant credit and debit cards, which the banks will start to issue in early 2004.

Barrie Watkinson, business systems manager at Homebase, said in a statement: "Homebase is a major supporter of the chip and PIN initiative and we want our customers to be able to take advantage of the added customer service benefits as soon as possible, that's why we are embarking on implementation now rather than in a years time when the deadline is looming."

One of the first banks to start migrating its customers to the new chipped cards is Halifax Bank of Scotland (HBOS), which has signed a deal with Gemplus to issue up to 15 million magnetic stripe cards over the next three years.