Some Hawke's Bay retailers may lose their eftpos facility from June 1 if their terminals have not been upgraded to incorporate new security features.
Carol Alsdorf, director of Eftpos Specialist (Hawke's Bay), said all retailers should have been advised by their banks to upgrade to the new security system.
"A few years
ago there was an upgrade but there were no disconnections," she said.
"Some retailers may be feeling a little complacent, but this time it is different - non-compliant businesses will lose their eftpos facility."
Rising fraud and anticipated demand from Rugby World Cup visitors has prompted banks to begin issuing chip and pin cards, which cannot be copied as easily as the old magnetic-strip cards and are more secure.
The change will align New Zealand with international security standards - many overseas cards already have the security features imbedded in them.
One criticism of the new system is that each transaction has more information, so can now take longer on a dial-up internet connection.
Hawke's Bay internet provider Airnet's sales manager, Ben Deller, said many customers were upgrading to broadband.
He said there was a simple solution for retailers who were unsure of their status.
"I refer our customers to the website www.areyouready.co.nz which tells them whether their unit is compatible or not."
