CONSUMERS and retailers across the North-East last night reported a smooth transition to the compulsory use of the chip and pin system.

Despite fears of chaos at the checkout, early feedback suggested it had gone well and was universally accepted as being a good means of combating fraud.

Retailers can refuse to accept card transactions from people with chip and pin cards who have forgotten, or don't know their pin number.

People with disabilities, who for some reason cannot tap in a pin or have memory problems, will be allowed to use what are called chip and signature cards.

Most companies in the region had prepared their customers for the change.

At Asda, in Stanley, County Durham, shoppers were all happy with the introduction.

Kelly Doran, 33, of Bowburn, Durham, said: "I have been using it for many months. I find it much more secure. I always cover my hand when I put in my pin number and rub the keys when I am finished so no one can see which ones I have used."

Marita Palmer, 64, a pensioner from South Stanley said: "I think it is good. If someone pinches my card they cannot use it.

"I have had same number for many years and have not changed it. I would rather get cash back at the checkout than stand in a queue and have to look through blurry glass. I feel more secure."

Postal worker Brian Milner, 30, of Chester-le-Street, said: "It is a lot more secure than a signature. I have no problem remembering my number. It has stuck in my head."

Assistant teacher Janice Leask, of Grange Villa, near Chester-le-Street, had some reservations.

She said: "I understand technology is harder to reproduce than a signature, but feel more could be done to enclose the keypad of the chip and pin so no one can look over your shoulder."

John Wright, national vice-chairman and North-East regional policy chairman of the Federation of Small Business, said the move offered increased security. He said: "Obviously our members are aware of the tremendous impact of fraud with the use of credit cards."

Asda spokesman Rachel Fellows said: "We have been working on this for two years and have prepared our customers for a long time. We also have staff on hand for anyone who has any problems.

"We will either hold shopping for them while they get the money, or let them settle later."

Robert Baker, accountant at Barkers, in Northallerton, North Yorkshire, said: "We have had no problems whatsoever. We have made our staff fully aware of the implications. I think the message has hit home with customers in general.

"It has put a burden on retailers but, having said that, its aim was to combat fraud and that is certainly happening. We have found customers very happy with the system."