BUSINESSES that do not install new chip and PIN card terminals will soon become liable for purchases made by credit card fraudsters, warns a Southampton solicitor.

Coffin Mew & Clover partner Amanda Brockwell says the deadline is up in January and urges businesses to be prepared or they could fall victim to card thieves.

Designed to make using a credit or debit card more secure, chip and PIN asks customers to enter a four-digit PIN number in the same way as a cash machine.

About 50 million of the new cards have already been issued, prompting many major chains to prepare for its introduction, and smaller companies should do the same, says Amanda.

"If any other businesses have decided to delay upgrading their card- reading terminal they should be warned that banks are unlikely to honour any fraudulent transactions after January," she said.

"My advice would be to 'bite the bullet' even if you don't think that Chip and PIN will make any difference to fraud in your business."