Here is a simple message. If a customer comes in with a card that is not Chip and PIN enabled, don’t risk it. Rajni Majichia found out the hard way that you can’t trust the swipe machine to protect you from forgery.

A couple of guys - strangers - came into his store, Regency Fine Foods in London’s Leather Lane. They bought cigarettes and booze so it wasn’t hard to run up a bill of £73.59 between them. Rajni swiped the card and it wasn’t declined; he got an authorisation number. The ‘customer’ signed and showed some ID. The transaction was captured on CCTV.

Some time later Worldpay informed him that it was a forgery. The card was okay, the ‘customer’ was not. Rajni took a copy of the signature and the transaction to Lloyds bank, but they said there was nothing they could do.

“Now we’re going to put up a notice,” says Rajni, “saying no Chip and PIN etc. I’ve learned a good lesson.”

Then he added that he would only take cards without Chip and PIN if they were from abroad which caused me to yelp at him, no, not even then! Back in February I reported that Mark O’Neill lost £200 through accepting a Mastercard Cash Passport (pre-paid holidaymakers’ type of card). There followed a chargeback and Mark was liable for the loss, rather than the bank.

It’s a totally unfair situation and I’ve reported it quite a few times and will going on doing so whenever a retailer gets rooked.

So now, make it a firm policy and do as Rajni is going to do: put up that sign.