The real question is: “Is it safe to accept credit cards?” with or without an iPhone…
If you read the previous post you are well aware of the motivation and monthly numbers of web searches for stolen/faked/or otherwise hacked credit card numbers.
Accepting credit cards with an iPhone using an iPhone credit card app, is identical to accepting credit cards via any other computer web connected virtual terminal. As most virtual terminal users run a MOTO business, in which they never actually see the card, in most cases, when you accept a credit card with an iPhone, you’re probably on a safer ground, as unlike those MOTO businesses, you, at least occasionally, do see the actual credit card.
All iPhone credit card applications (included on our site…) are PCI compliance, as restricted credit card info is never saved on your smart phone. The second you process a credit card transaction, the info is securely sent to your payment gateway, and transaction details no longer include credit card information you are not supposed to maintain.
As a merchant accepting credit cards you need to make sure you use anti fraud measures, just like any other merchant. Many iPhone merchants, like other small merchants, use their payment gateway and merchant account provider to fully run the fraud management on their behalf. The real risk in this kind of an arrangement is a business loss, as your provider, might decide to decline a transaction you could have decided to take…
Gidi Argov, Founder and CEO
www.CreditCardProcessing-r-us.com
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So, are you actually saying that an iphone transaction is a card not present transaction? Or in other words, an expensive transaction? Is there a way to convert it into a card present, at least in v\cases where you actually see the card?
Most iPhone credit card processing solutions enable only card not present transactions and therefore indeed run through higher interchange fees. Same applies to any other online transaction…
There are other iPhone processing solutions which do support Card Present transactions. Payware Mobile by Verifone is a CP solution, and at least as it relates to interchange fees, is a cost effective one.
Sure it is! I do it for almost a year now and don’t have one problem to report!
All businesses suffer some financial loss from credit card fraud.
This risk increases when accepting payments online for payment of services, to pay bills, and to purchase merchandise.
It is up to each business to verify the owner of the credit card. In addition, businesses must make certain that they protect their customers’ personal information when taking payment from cards.