I don't think that I would microchip and guess it's because of fear. I know there are studies out there on both sides of the cancer issue, but as of now would wait until there is more definitive proof that they won't cause a cancer. I mean sometimes it can take years (decades even) for research to be conclusive. And, after knowing nutrition science with regard to dogs hasn't been that great, I just don't trust whats known right now.
I would tend to have a tattoo done before microchipping.
Btw, I did watch a dog on an Animal Planet show just last night get a microchip and it did seem painless actually. The dog never even whimpered or flinched.
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