Preparing The Business Case >>

Potential Costs

1. Terminal Upgrades

You will need to consider the costs involved in implementing different types of terminals; whether you choose to fully integrate the Contactless reader in your till systems, use an add-on reader, or use a device which is leased from your bank.

Costs to be considered include hardware costs, software costs, communications/ network upgrades, support, maintenance and accreditation. In addition you will need to consider any costs of updating your host systems. (Acquirers and card schemes have given assurances that the cost of accreditation for Contactless will be negligible.)

If Contactless technology is implemented as part of your existing terminal replacement cycles, only the incremental cost of the terminal replacement should be considered.

2. Staff Training

Retailers should consider both the cost of initial training, and the ongoing cost of support and the additional training for any new members of staff.

 If Contactless is implemented in line with your current terminal replacement cycle, training on new equipment to include Contactless should only be included as an incremental cost.

3. Customer Education & Marketing

There are a number of costs that you may wish to consider:

• Customer Queries – it should be noted that that the amount of customer queries will be dependent on the timescales for rollout. If rolling out in an established environment, the percentage of customers with queries will be reduced.
• Signage & POS Materials - a variety of POS materials & signage can be made available by acquirers – retailers should discuss the options available. Should retailers wish to produce their own materials, the following costs must be factored in. Point-of-sale and window display designs are available on this site.
• Marketing & Advertising - both acquirers and the card schemes will be undertaking marketing campaigns, and any additional spend is at the discretion of the retailer.

4. Card Fees

Details of the transaction fees for Contactless transactions should be discussed with an acquiring bank (see links to participants).