Mobile payment company Square has responded to VeriFone’s security allegations yesterday, describing them as “not a fair or accurate claim.” As we’d suggested, Square CEO Jack Dorsey points to how easy it is to “skim” the numbers from a credit card, whether using “an encrypted card reader, phone camera, or plain old pen and paper.”
What VeriFone’s claims don’t take into account, Dorsey continues, is the inherent layers of protection built into the credit card process. If a transaction through Square is fraudulent – just as if it were punched into a website or, indeed, swiped illegitimately through a VeriFone payment terminal – then the bank that issued the card contacts the user and reverses the transaction.
“Our partner bank, JPMorgan Chase, continually reviews, verifies, and stands behind every aspect of our service, including our Square card reader” Dorsey concludes, before pointing out the extra identity systems the company is rolling out, such as instant SMS or email alerts after every transaction, and the inclusion of a profile picture in the official Square app, something fraudulent imitators couldn’t provide. With VeriFone making such a big fuss within the industry about this, though, we can’t see the hyperbole disappearing any time soon.