A CRISIS threatening to swamp the introduction of Chip and PIN technology across businesses in the south is the fault of the big banks, it's been claimed.

Banks have aggressively driven the scheme before retailers and consumers are ready according to The Forum of Private business (FPB). The FPB warned the banks two months ago that they needed to delay tomorrow's deadline to avert chaos.

The launch of the system is being seen as the biggest change for businesses and shoppers since decimalisation. FPB chief executive Nick Goulding said: "Retailers must realise that from New Year's Day if they continue to accept signature payment rather than PIN they will shoulder the cost of any fraud, not the banks.

"Retailers are going to be faced with having no option but to accept signature payment - and risk being stung with the fraud - or lose the sale all together.

"With the January sales kicking off the banks could not have picked a worse time to force this scheme through.

"The situation is utter chaos and the blame lies entirely with the banks and their abject failure to adequately plan and prepare for this enormous transition.

"FPB members have been contacting us complaining that they are still waiting for their Chip and PIN machines and it is estimated a quarter of business have not installed the technology."

The importance of credit and debit card use has been highlighted by the Association for Payment Clearing Services.

It said spending on credit and debit cards overtook cash for the first time with UK shoppers putting £269 billion on plastic compared with £268 billion in cash payments.