Are there any exceptions were I could sign instead of use the PIN pad?

There are certain circumstances were a signature would always be accepted. These are:

• People who have old style cards and are still waiting for their new chip and PIN cards.
• Overseas cardholders who have not been upgraded to chip and PIN.
• Disabled cardholders who are unable to use PIN and have requested a chip and signature card.
• For all shop that don’t have a chip and PIN system.

The Chip and PIN card looks like your standard debit/credit card, but features a microchip unique to your card. So long as you keep your PIN code confidential then theoretically nobody else can use it but you.

It means a fraudster can't present a stolen card for payment and get away with it simply by forging the signature. What's more, the microchip cannot be copied or cracked, making it useless to crooks the world over.

Is there a downside?

Chip and PIN can't be used for small-scale purchases like stamps and milk, so cash still has a future. Most criticism has come from the retail sector, especially small and mid-sized businesses. This is because the point-of-sale systems required for Chip and PIN cost money (to buy or lease), and may also need upgrading.

What's more, those retailers still prepared to accept a signature are now liable for the cost of any fraudulent transaction. The banks and building societies no longer shoulder this cost, which some traders claim is unfair.