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    7 Replies Latest reply on Jul 10, 2011 1:26 PM by Michold

    New Iphone App that lets you process credit card transactions from your phone/ipad

    JackieGold Scout

      Have you guys heard about Square? I promise I don't work there or have any ulterior motives by spreading the word about their business - except that they have a REALLY COOL IDEA! Now you can literally plug in a little magnetic strip to your phone or ipad and your customers can pay for their purchases via wifi/internet connection! This cuts out all the annoying paperwork that small businesses have to deal with when it comes to monitoring their credit card transactions every month.

       

      I wrote a blog article about Square that you can read here for more details about how it works. I really think this app represents the future of making purchases!

        • Re: New Iphone App that lets you process credit card transactions from your phone/ipad
          amspcs Ranger

          Jackie--I agree that Square is a unique idea.  But it's also true that they are  having some very big growing pains in terms of security and PCI compliance, which some in the industry have taken them to task for,

          particularly Verifine.  .

          I think they've come a long way.  But they're not there yet.  Meantime, there are far safer iPhone processing solutions on the market to chose from. 

          • Re: New Iphone App that lets you process credit card transactions from your phone/ipad
            amspcs Ranger

            To those interested, here are some interesting updates and recent quotations on the subject of serious security shortcomings of Square, as published in the 6/13/11 edition of The Green Sheet, a payment processing trade publication.

             

            Paul Rasori, Senior VP of Marketing for Verifone and Chairman of the Secure POS Vendor Alliance, commenting on security concerns with payment devices, states pointedly that the way NOT to secure payment card data on smartphones is exemplified by Square.  He further explains that the problem with Square is that it has "absolutely no encryption whatsoever", encryption being the means by which sensitive data such as credit card numbers are transmitted safely and protected from potential hackers.  "In less than an hour, any reasonably skilled programmer can write an application that will skim or steal a consumer's financial and personal information right off the card utilizing an easily obtained Square card reader". 

             

            In support of Rason's assertions , Gary Glover, Directory of Security Assessment for SecurityMetrics, Inc, adds "If Square had decided to put a little encryption chip inside their device, instead of it just having it be a straight clear text read of the data off the card, then the data leavingthe card swipe hardware would be encrypted..." 

             

            It should be noted that merchants victimized by data theft are  themselves at risk of suffering dire consequences, including possible legal actions and/or fines.