Square's On-the-Go iPhone Credit Card Scanner Will Cost $1 • Hacker News Board

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#41

Post by unwind » Wed, Feb 17, 2010, 2:20 PM UTC

How is the reader powered? Their copy on the home page (as well as in the video) says:

"Read payment cards from any device with an audio input jack, including your mobile phone."

From the image on their page, the reader is using a 4-pole 3.5 mm plug, which might mean it's powered from the host device. If not, I guess it needs a coin cell which would have to be replacable unless the entire reader is disposable.

I searched for a pin-out of the headphone jack, and it seems the 4th pole is for the microphone which (of course!) is used to send the credit card data. Is their app playing some sound, thus allowing the reader to power itself from the audio outputs?

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#42

Post by qeorge » Wed, Feb 17, 2010, 2:40 PM UTC

cschneid wrote: post #6

alastair wrote: post #2

I really like the idea behind Square, but are customers really going to trust a dongle hanging out the end of someone's phone? Whats to stop someone reverse engineering the dongle and creating a spoofed client that just records the data instead of performing a charge?

So? That's already a risk every time your card leaves your sight. The details on the strip aren't much more than what's on the front of the card. I know I had access to people's cards back when I worked retail. The store-copy of receipts had full card number, name, and expiration date. This device is the least of your security worries when it comes to a credit card.

I agree, but technically this is not true:

The details on the strip aren't much more than what's on the front of the card.

The magnetic stripe gives you Track 2 data, which you can't read of the card without a machine.

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#43

Post by didroe » Wed, Feb 17, 2010, 3:31 PM UTC

Isn't this just Paypal? But instead of giving someone my email address to transfer funds, they have to get their dingle-whatsit out and I have to get my card out and mess around?

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#44

Post by cschneid » Wed, Feb 17, 2010, 4:37 PM UTC

bmalicoat wrote: post #19

cschneid wrote: post #6

Earlier quoted context omitted.

So? That's already a risk every time your card leaves your sight. The details on the strip aren't much more than what's on the front of the card. I know I had access to people's cards back when I worked retail. The store-copy of receipts had full card number, name, and expiration date. This device is the least of your security worries when it comes to a credit card.

Not sure how long ago you worked in retail (hopefully a long time ago) but that practice is now illegal under US Federal law. This isn't to refute your point since credit cards carry little risk, a lot less than carrying around cash anyway.

Is it? Interesting. It was 7 or 8 years ago now.

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#45

Post by gte910h » Wed, Feb 17, 2010, 9:44 PM UTC

KWD wrote: post #40

gte910h wrote: post #9

Earlier quoted context omitted.

Who cares? This is already a solved problem with credit card laws (the very limited liability you suffer by some random dude stealing the number)

But what about those that use debit cards. Not the same protection, and much more chance for harm.

I would say that's probably why you shouldn't.

Re: Square's On-the-Go iPhone Credit Card Scanner Will Cost $1

#46

Post by MaysonL » Mon, Feb 22, 2010, 3:27 AM UTC

pyre wrote: post #32

wallflower wrote: post #15

Earlier quoted context omitted.

My understanding is that PayPal originally was intended to be that and now is the most sophisticated fraud detection and combatment system ever created. > Just as Napster allowed people to directly share music online, PayPal enables people to exchange money instantly without having to open expensive merchant accounts to accept credit cards. Yet to Levchin's surprise, advanced cryptography has had little to do with Pa…

> now is the most sophisticated fraud detection and combatment system ever created. That's not saying much about fraud detection systems then. Seems like every other day there is some story about someone whose PayPal account was frozen without any chance for appeal or even a solid stated reason as to why it was frozen.

A little bit of selection bias there: you don't read about all the valid transactions that go through, and all the fraudulent transations that get frozen.