How can I minimise the cost?

It is important to be aware of the complete picture of what is involved in upgrading to chip and PIN [see: what steps must I take?] When the estimates for the UK as whole are as high as £1.1 billion - approximately £1,500 per point of sale - you will realise that these costs are not trivial.

In chosing new hardware and software, there are important consideration to take for both current and future needs. How will EMV configuration parameters, software upgrades and reader firmware updates take place in the field? How will I adapt my store for new smart card applications such as e-couponing, e-purse and e-loyalty? How will I integrate card payments with the emerging Customer Activated Terminals (CAT) such as kiosk, self-scanning, outside payment terminals on the fuel forecourt? If my hardware is expensive to buy how much is the ongoing cost of ownership?

The most significant way of minimising costs is to be aware of all the facts and use them to make a considered business risk decision. However, it is worth pointing out that the success of integrated EFTPOS stemmed from two important principles:

• Make the hardware as simple and universal as possible

• Emulate terminal functionality in software

Certainly an open systems approach and building a solution from flexible, reusable components has the potential to minimise costs long term, even if the initial costs are higher.