Mobile Payments: Verifone Releases News on SquareUp's Merchant Swipe

Posted by Britney Chan on Jun 22, 2011 9:33:00 AM

mobile paymentsFor Immediate Release

Recently Verifone Systems, Inc announced that it had been able to develop a third party app for mobile payments that could access credit card processing data swiped by the SquareUp free card reader that is included with this account.  Though Verifone mentions skimming as the main threat, with all the creativity of hackers out there I could easily see an app being developed and shared across users phone's that can unknowingly access the data as well. 

We have often tried to help merchants understand that mobile payments with credit cards is not a birthright for everyone as everyone does not have good intentions or the desire to secure cardholder information - so when Square announced the plans of helping "anyone" process credit cards themselves through mobile payments, all sorts of thoughts ran through the heads of payment professionals (what about underwriting, what about support, what about customer disputes?)

As with anything, Square is a great idea in concept, but we really would encourage merchants to consider all possibilities when dealing with handling mobile payments and sensitive cardholder data - this is not the newest "Social Networking Craze", but something that must be considered carefully and taken seriously - just as merchants do with real merchant providers when analyzing their pricing - just because Square is free doesn't mean that they shouldn't be scrutinized the same, in fact as we all know, most anything that is free should be scrutinized more just to be sure it can deliver on it's promises securely.

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Tags: Mobile Payments, Fraud Prevention