The report encourages industry-wide adoption of strong measures to ensure security throughout the mobile payment process. The report addresses ways sensitive financial information can be kept secure during the mobile payment process, such as through end-to-end encryption. The possibilities for encryption listed in the report cover everything from the authentication of data during the transaction to the secure storage of information on a mobile device. Click on “Mobile” to read report.
“The Smelly Cat Coffee Shop in Charlotte is one of the nation’s top users of the Square card reader. The business uses the device for all of its credit card transactions…(the restaurant) says customers’ card info is safe because the program doesn’t allow cashiers to see customers’ information when they swipe…”
Mobile credit card readers like the Square and Intuit devices are growing in popularity around the country. The devices offer merchants the ability to accept credit card payments anywhere and are often less expensive than traditional card swiping technology.
But the Federal Trade Commission and consumer watchdog groups are urging consumers to be vigilant about protecting their financial information when using the devices. The FTC recently released a report on the growing popularity of mobile payment devices. The report did not name any specific threats that come from using mobile card devices. The agency is urging consumers, as well as merchants, to make sure that financial data is protected in each transaction.
The Better Business Bureau said consumers should make sure they trust the merchants they allow to swipe their debit and credit cards using the devices. It is buyer beware. According to Janet Hart of the BBB, people should be careful how, when, and where they use their credit card; because, there is the chance data could be misused.
Staff at the shop said they have not had any negative reactions from customers using the device at the store.
“It’s a similar security that you would find on a receipt, on a printed receipt, that a waiter or waitress would be exposed to in a restaurant,†said Burleson. However, advocates said consumers should use the same caution when using the mobile readers that they would use when ordinarily swiping their credit cards.
