Being able to receive payments by credit and debit card enables you to do business using internet, electronic or paper-based systems, making it much more versatile than cash or cheques - and setting up a system is quick and easy.

All major banks have their own service that enables a business to establish a system to take payments by VISA, Electron, MasterCard, Switch/Maestro and Solo - and you don't have to be an existing bank customer to use it.

For example, Lloyds TSB provides the Cardnet service, which, as Adam Gallimore from Lloyds TSB  Business explains, supplies a choice of point-of-sale electronic terminals, stationery, support service and helpline.

“Once a payment system is set up, transactions can be carried out quickly and efficiently,” says Gallimore, “and detailed monthly statements are sent so you can keep track of payments. This also cuts down on paperwork, making accounting simpler.”

One recent development that all businesses need to be aware of is the advent of chip and PIN, the technology intended to reduce credit card fraud. With this came a shift in liability for fraud as from January 2005 retailers without chip and PIN capability are liable for losses caused by fraudulent transactions. For more details, visit www.chipandpin.co.uk.

However, this will not stop fraudsters trying their luck and Gallimore has suggested that retailers look out for customers who: