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What are the hardware costs per chip-and-pin reader? $500? It doesn't seem like such a big investment for a mom and pop. Wal-Mart/Target would have to buy 50-
by frogpelt 13y ago
What are the hardware costs per chip-and-pin reader?
$500?
It doesn't seem like such a big investment for a mom and pop.
Wal-Mart/Target would have to buy 50-75 per store but the costs would be relatively the same.
- mcherm 13y agoWhether or not it is "a lot" depends on a lot of details like what price you're getting offered, how big your profit margin is, and how much you have to pay to the person who installs it, configures it, and trains you to use it. These costs may be much more than $500. Empirically, I can say that despite the credit card industry asking nicely, almost no merchants anywhere in the US have installed pin-and-chip readers. (Of course, there has been essentially no benefit to them either.)
- frogpelt 13y agoSo, I guess as soon as the benefits outweigh the costs, just like any other business decision, retailers will be installing chip-and-pin readers here.
- mcherm 13y agoExactly. That's why I think the threat of having to shoulder the fraud risk will encourage people to upgrade. Not only is it an additional cost, it's an UNKNOWN cost, which is quite scary.