Chip-and-pin cards are creating legislative and financial problems for small businesses, according to IT experts at the University of Wolverhampton.
Companies, who run unattended payment kiosks such as parking machines and telephone top-up kiosks, appear to be suffering the most difficulties.
During work with KPR Midlink, a Wolverhampton company which produces hardware and software for the collection of payments for local authorities and companies, the University's IT Futures team discovered that chipandpin had caused considerable problems for them, and other similar organisations.
Dr Garry Homer, Technical Director for IT Futures, said: "Increasingly tight legislation, procedures and protocols imposed by the banks and acquirers upon companies introducing chip-and-pin, means that firms have to keep updating their systems - eating into their time and resources.
"Making the changes and getting certification to prove that their kiosks and equipment comply with these stringent protocols is costing companies up to £20,000."
Dr Homer also suggested that some well-known companies have been caught out by the changes.
"Chip-and-pin came in very quickly and the market wasn't really ready for it," he said.
"The new systems and necessary certification procedures are causing financial and legislative problems, mainly for smaller companies."