Square iPhone Payment System turns your phone into credit card reader

Everyone and their uncle Steve uses WinCE terminals to execute cashless transactions these days, and while you'd expect Apple to remedy that right quick, the Square credit card reader has beaten it to the punch. Plugging into the headphone jack of either an iPhone or iPod Touch, the dongle takes a swipe of your card, the seller enters the purchase data and you do your best penless John Hancock on the touchscreen. After that, a receipt is delivered by email and the app retains geotagging data for each transaction. Spiffy, right? Well, there is a surcharge to pay, and it's still in early alpha testing in New York, but should it prove popular, there's no reason not to see this appendage make an appearance on Android or WinMo phones as well. Rest easy, Gotham, we're sure nothing could possibly go wrong.

[Thanks, Derek]

[italidesign Posted Aug 4th 2009 9:23AM]

Why do I feel those asses who steal card data from ATM machines all the time, will have a now new and more convenient way to steal your data from you? The idea is cool, I just worry about the maddening amount of theft these days.

[greengiant912 Posted Aug 4th 2009 2:20PM]

Apple is currently looking to replace their Window's based systems with an iPhone system

http://www.appleinsider.com/articles/09/04/10/apple_stores_to_ditch_windows_easypay_systems_for_iphone_tech.html

From what I heard from a apple store rep they are looking to roll it out within next year or so.

I am sure they are working on a device that is a credit card reader as well.

[(Unverified) Posted Aug 4th 2009 3:40PM]

This won't ever be abused....

[(Unverified) Posted Aug 4th 2009 6:04PM]

Wow, so many here without a clue! Now, let's see, how would this be more difficult to abuse than, say, existing PayPal, or any other web-based online site that takes orders? The abuser would presumably have to intercept this transaction online and swipe credit card info. With existing web-based ordering, you get full name, full address, often times home phone, credit card number, expiration, 3-digit security code... With merchant accounts and transaction terminals, most of the time, you don't anything more than what the swipe would give you (Name, cc number, expiration and security code). What could possibly be done with that information? The only thing that any malicious person could do with it is get some fraudulent charges before your credit card company/bank freezes the account. You don't pay a single penny for any of the fraudulent charges, no identity has been revealed (in order to be stolen), no real harm.

I'd really love to see possible abuse, other than what's currently possible with PayPal (Nigerian scam, etc).

In reality, this is going to be incredibly convenient for my band, selling gig tickets, CDs, t-shirts, etc. Instead of taking cash, or setting up laptop to process credit cards via PayPal (or something similar), we can now use iPhone(s), which makes it much faster, more elegant and professional.

Apple will soon implement it in their own stores. Surely, that should imply the system is reliable, robust and secure enough for commercial applications.

[(Unverified) Posted Aug 5th 2009 10:58AM]

I was searching for a mobile merchant account. I learnt that there are more than few options for i-phones and other smart phones. You can look at the wireless tab of http://www.creditcardprocessing-r-us.com/ . From my previous experience with merchant accounts- I know that one should compare. There are big differences between the providers!

[mobilehavoc Posted Aug 5th 2009 6:38PM]

What if you get a phone call in the middle of a transaction? Ooops...have to start over

[(Unverified) Posted Aug 6th 2009 10:22PM]

I don't think this qualifies for the "Made for iPod, works with iPhone" licensing. I wouldn't be surprised if this fails to launch due to circumventing Apple's licensing rules. Secondly, this device might be breaking this patent: http://www.patentstorm.us/patents/6006109.html

[(Unverified) Posted Aug 7th 2009 2:04PM]

What company is making this bad boy?