To "set the scene", each retailer is using the Microsoft Dynamics RMS point of sale software and has a single check out lane. The average transaction amount across all stores is $48.00. They are averaging two errors per month with the typical error being that the total is entered as $4.80 instead of $48.00 on the stand alone payment terminal. None of the merchants are contacting the cardholders to ask for the $43.20 difference due to the error being the employees fault and/or not having any way to track down the cardholder. They are not experiencing over-tendering costs as the cardholder does notice this and contacts the store for a refund.
So, here are the 5 year costs for a stand alone payment terminal:
- Average purchase price: $280.00
- Loss due to average error of $43.20/twice a month x 12 months x 5 years: $5,184.00
- Total 5 year cost for stand alone payment terminal: $5,464.00
- Single lane Card Defender typical complete upfront deployment cost: $1,350.00
- Card Defender $10/terminal monthly support charge x 12 months x 5 years: $600.00
- Total 5 year cost for Card Defender: $1,950.00