TRADERS were today confident that the "chip and pin" revolution would not cause problems in East Lancashire after the system's formal introduction at midnight.

Wherever possible, shops must now use the new pin system, with customers keying in a code rather than signing a card.

Traders have reported no significant problems and welcomed the move as a good way to cut down credit card fraud.

Roger Gibson, business manager for the East Lancashire Chamber of Commerce, said: "I am all for extra security in terms of protecting consumers' rights.

"I am sure there will be some flexibility some-where as I can't see every single retailer will be absolutely ready today.

"It's in the interests of everybody to reduce the amount of fraud taking place in terms of credit card use."

Blackburn with Darwen Council today revealed some of its facilities would use chip and pin, but others, relying on systems like direct debit, would not need to.

Alan Cotton, director of finance at the council, said: "The council is not implementing chip and pin in the collecting halls where people make payments for their council tax and business rates as the council can redebit accounts if they do happen to be paid fraudulently.

"However our leisure centres and some other facilities have introduced chip and pin."

Under the new system businesses will be liable for any fraud committed using the system, rather than the banks.

Around the country concerns have been raised about how the elderly and vulnerable will cope with memorising a pin, and special cards which still carry a signature have been made available.

But in East Lancashire traders said they had no concerns. Blackburn chamber of trade president, David Cottam, said: "The feedback that I have got is everything is going reasonably smoothly.

"Shops aren't going to refuse people to sign at the moment, there will be a cooling off period.

"It has been reasonably well received because of the fraud part of it."

Simon Dawson, director of Dawson's department store, King Street, Clitheroe, said the store was not expecting any major problems.

David Jones, manager of the Arndale Centre, Accrington, said: "I don't visualise any problem here. People have been given enough notice."