Chip-and-PIN readers are a revolutionary tool for merchants and their customers, offering a secure and convenient payment option. However, setting up this system can be costly, but why?

To begin, Chip-and-PIN readers require specialized hardware, which drives up their costs. Chip-and-PIN readers are composed of a card reader, a digital payment processor, and a display. With the addition of contactless payments, such as Apple Pay and Google Pay, the reader also must accommodate the RFID readers to detect those types of payments. These components make the reader more expensive than traditional magnetic stripe readers.

The card reader itself is the most expensive component of the Chip-and-PIN reader. The card reader must be able to read the chip in the customer’s credit or debit card and validate the PIN. This requires a highly secure data transfer system that is expensive to produce. The card reader also needs to be certified by the payment processor, which also adds to the cost.

There are also other costs associated with Chip-and-PIN readers. As these readers must comply with industry regulations, merchants must submit to periodic inspections and audits to maintain their certification. This requires more time and money from the merchant. Additionally, merchants must pay processing fees for each transaction, which increases the cost of using these readers.

Overall, the cost of Chip-and-PIN readers may seem high, but the cost reflects the level of security and convenience they provide merchants and their customers. With the added convenience, security, and protection against fraud, the cost is well worth it.