He has since been blacklisted, charged £500 for a risk management/investigation fee, has not been paid for the past few transactions and has had his credit rating put on 'member alert to control high risk', which means he won't be able to get a replacement machine anywhere.
Let me reiterate: the retailer did nothing wrong. The transaction was for money vouchers that people buy to top up their credit cards and was not unusual in this store, and the retailer thought no more about it until he got a call the following week from Barclaycard asking how the transaction was carried out and why such a large amount.
"We told him we had an authorisation code. At no point did they mention that the card may have been stolen or cloned."
Then to his shock, a Barclaycard fraud investigator, who said he happened to be passing, came to collect the machine. The retailer refused, but later handed in the machine himself to Barclay's Bank.
He told me: "It seems the Chip and PIN authorisation code is not as safe as we think and we end up paying for fraud. Maybe there should be a limit on cards? We have been made to feel guilty for something we did not do."
A Barclaycard spokesman said: "We maintain that to remove the terminal and suspend the retailer's account was the right decision. On several occasions he processed card transactions which were highly suspicious and in breach of our terms and conditions."
I think it's scandalous. I have recommended consulting Lawyers for your Business and the Financial Ombudsman, and suing Barclaycard for breach of contract and money owed him. Fighting back is essential.