The Forum of Private Business (FPB) has laid into Britain's banks for rushing the introduction of chip-and-PIN credit and debit cards.
"The looming crisis threatening to swamp the introduction of chip-and-PIN technology is entirely the fault of the banks which have aggressively driven the scheme before retailers and consumers are ready," the business group said.
Its call came after a Caterer and British Hospitality Association survey found a quarter of hospitality businesses had not installed the technology in time for the 1 January deadline.
Businesses without chip-and-PIN technology are now liable to cover the costs of fraud.
The FPB's chief executive Nick Goulding accused the banks of greed, complacency and incompetence.
"The FPB has been deeply concerned for some time that chip-and-PIN is being crowbarred in by the banks, which are desperate to transfer liability for fraud,' he said.
Goulding added: "The situation is utter chaos and the blame lies entirely with the banks and their abject failure to adequately plan and prepare for this enormous transition."
Buy this week's Caterer magazine for more industry news and analysis