Help setting up RFID reader with hard to understand schematic with arduino UNO

This setup is using Serial, not Wiegand

But it could be if you wired it up right. It would be the better way to have it wired to the Arduino as it leaves the serial port free.

The fact that the setup wires pin 3 to high means it is not internally connected and wiring it to ground would enable the Wiegand output.