Spend limit
To avoid the problems of getting your card nicked and having many little £10 transactions amassed before you can report it, why not have a daily spend limit of £30 or something by using this method, and once you reach that you have to input the PIN at the terminal to approve the next transaction? Once done, this resets the limit again, and you're free to spend up to another £30 or whatever it's set at.
If you never spend anywhere near £30 a day using this payment method, then you'll never hit this limit anyway. If you do happen to hit it once, no problem, enter PIN and you're good to go again.
The beauty of this is you can set the limit at a level that you spend at or are happy with the risk at - maybe 50p for some of you out there. Personally, a tenner a day would probably do me.