The new technology, which replaces the card-holder's signature with a four-digit secret code, aims to tackle the surge in payment card fraud.

There are only 30,00040,000 Amex charge cards in Ireland and, from the end of March, management of the portfolio will revert to American Express from Bank of Ireland, which has managed the business locally since 1998. However, the bank will continue to manage the Amex Blue credit card, which has close to 10,000 customers in Ireland.

Amex's flagship charge cards are aimed at business people with expense accounts.

They have no set spending limits, although balances must be settled in full each month. Amex credit cards allow customers to carry balances from month to month in the normal way. But because Amex does not have the ability to manage extended credit in-house, this business is staying with Bank of Ireland.

"It's a huge job to put chip and pin on every card we issue and, because of the number of Amex cards involved, it didn't make sense, " said Eddie Ryan, head of card marketing at Bank of Ireland. "We'll continue to manage the Blue credit card like we've always done and, for customers who want a charge card, Amex will be our preferred supplier."

The bank wrote to affected customers before Christmas telling them that Amex will issue them with new charge cards in February and March, adding that their existing cards will no longer be accepted after 28 March.

Unpaid balances at that date will not transfer to Amex and the money will still be owed to Bank of Ireland.

The switch should be good news for card-holders who sign up for Amex's loyalty programme of membership rewards. Bank of Ireland introduced it to Ireland in 1999 but it has never been as attractive as the rewards programme offered internationally because card-holders are generally restricted to the local market when redeeming points, which are awarded on the basis of spending.

"It was difficult for us to offer significant value-added rewards and the programme operated by us will finish, to be replaced with one operated by Amex out of the UK, " said Ryan.