there are 47 different state-based security breach notification laws
These retailers should be careful what they wish for. One of the main problems with health insurance used to be that every state had its own set of laws and licensing. Now that the feds took over the regulation of it they not only require everyone buy it but also dictate coverage levels, like it or not.
Sigh... Actually the way Obamacare is set up, insurance companies should *like* it. They theoretically get lots of new customers who are forced to buy their services and are pretty much guaranteed 20% of the premiums to run their business (80% has to go to medical reimbursement) and they are allowed to pick and choose the medical providers they will contract with... It's likely the patients that get the screw on this (other than the sorely underused HRA option which is another can of worms)...
Similarly, the large retailers would like a defined standard security coverage levels for POS transactions. The large retailers will simply pass this cost on to the consumers confident in the knowledge that nobody can undercut them in this dimension (as they have economies of scale). It's likely the consumers that will get the screw on this one as they will have to pay for the security upgrades for the smaller retailers...
I think people don't generally realize how much they are actually paying for the convenience of credit card transactions as the costs are cleverly hidden from them. In fact, until recently, the costs were mostly handled in a completely regressive manner (rich generally pay less, poor pay more). Interest payments subsidized the no-fee cards for those freeloaders (industry term) that don't carry monthly balances, Rewards cards dollars are extorted directly from the merchants (merchants have to pay a higher percentage to clear rewards cards than non-rewards cards). The money comes from the merchants so they charge higher prices, and the banks skim the money that is passed through them.
Consumers addicted to plastic payment are essentially enabling the banks to skim money from the retailers (and thus you the consumer)... Think of these two questions you might ask a random consumer...
Would like a convenient way to pay such that you will pay 3% higher prices to retailers so that large banks can get 50% of that money?
Or would you like a convenient way to pay if I gave you back 1% of your purchases volume so you can spend more money?
Clever, those credit card companies, aren't they ;^)