Despite the installation of more than 540,000 chip-and-PIN retailer terminals across the country, 26% of respondents felt they needed more time to prepare, before the 1 January deadline. After that date businesses without chip-and-PIN technology will be liable to cover the costs of fraud.

Connie Penn, chairman of the Hospitality Forum for chip and PIN, said: 'I'm not surprised at these figures, as until the beginning of this year the unique issue of the hospitality industry had not been addressed. While the industry was committed to chip and PIN, the system could not meet their requirements.'

Karishma Chandaria, BHA business development executive, said it had also received an influx of calls from confused members looking for advice on the technology and new systems.

'Most of our callers are the small restaurant owners and independent operators', he said. 'Generally, the larger hotel groups have been very organised and have the capability to deal with chip and PIN.'

'Smaller businesses are finding it more difficult to accommodate the changes, as they don't have a company policy and are dealing with suppliers and banks themselves.'

Chandaria thinks chip and PIN will soon become an accepted part of business in the UK, but adds that operators without the technology need to get ready now.

'I don't think the message has really hit home that you need to have chip and PIN enabled by 1 January, but our advice is for those at the smaller end of the market to contact their bank, and if they don't feel they're getting a good deal, to look elsewhere.'

Most of respondents felt the impact of the new technology on their business was likely to be neutral, with only 12% believing it would have a negative effect.