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The End of the Credit Card? New Square app: Card Case

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Re: The End of the Credit Card? New Square app: Card Case

#101

Post by 6ren »

A malicious cashier could order things in your name, whenever you were nearby.

This might not happen much in practice, because the cashier would be found out later (assuming they must login). However, the opportunity doesn't arise with existing transactions, where you must physically hand something over (cash/card), and usually get an opportunity to verify the amount, so there's no evidence either way. It will be interesting to see if this is actually a real issue, in practice, in the current roll-out.

Many, many cash-alternatives have been tried and failed, but this one has a new technology (iPhone geofencing) and smart founders. If it does work, they could quickly revolutionize cash - globally (not to mention be the killer-app for the iPhone).

Re: The End of the Credit Card? New Square app: Card Case

#102

Post by refulgentis »

huhtenberg wrote: post #98
refulgentis wrote: post #94

I am the cofounder of a startup that builds an iOS/iPod/iPad POS Ambur, and it's absolutely astonishing to me to see people claim Square is doing anything useful for merchants. Their software is far too simplistic for anyone running more than a very basic coffee shop with tech savvy customers to use. Even something as simple as most customers demand paper receipts, and Square's functionality is taking basic orders, o…

Wouldn't adding a "Print receipt" button on a merchant's device solve the "cusomters demand receipts" concern? And they are building a platform. They will likely to open it up sooner rather than later too, they just can't take on CC companies alone.

Nope, unless you want to integrate with a receipt printer manufacturer, and now all of a sudden you're beholden to that - there's many technical issues because now you need a preferred router manufacturer too, so the iPad can talk to the printer.

Sure, I've been hearing forever that they must be going to, eventually, etc etc. hasn't panned out and it's been literally years

Re: The End of the Credit Card? New Square app: Card Case

#103

Post by corin_ »

thinkcomp wrote: post #64
reissbaker wrote: post #60

Earlier quoted context omitted.

Er. But unless you've given Starbucks direct access to your bank account, those are fundamentally card-based too.

Not quite. Starbucks uses its own pre-paid system that does use a plastic card, but one without any major network's logo on it. It's just store credit.

And in America (I believe - last I heard it was rolled out in some American cities but not others, nothing here in the UK) the iPhone/Android/Blackberry(?) apps let you manage your account balance, and you hold up your phone for the cashier to scan the barcode off your screen.

Re: The End of the Credit Card? New Square app: Card Case

#104

Post by corin_ »

reissbaker wrote: post #57
Figs wrote: post #28

> Paying for stuff with your phone sounds awesome until you stop to think about it. Uh, it doesn't sound awesome to me at all. It sounds annoying and frustrating. Swiping a credit card is already pretty simple. > then tell the cashier your name Yeah, because that works great. My name is fairly common, and cashiers still manage to get it wrong, especially if it's noisy. Also, what happens when three "John Smiths" walk…

If a restaurant's going to go to all the trouble to install a system like this and set it up so that my phone can pay them Well, the point of Square is that there isn't much to install. Download the app, they mail you a reader for free (or you could pick one up at the nearest Apple store for $10 if you can't wait), and you're ready to start taking payments immediately. Setting up Square is simpler than setting up a t…

You've missed the entire topic of this article - it's about a new Square system that detects when you are in the store because your phone is on you. Not just Square's basic card reader device/software.

Re: The End of the Credit Card? New Square app: Card Case

#105

Post by ig1 »

6ren wrote: post #101

A malicious cashier could order things in your name, whenever you were nearby. This might not happen much in practice, because the cashier would be found out later (assuming they must login). However, the opportunity doesn't arise with existing transactions, where you must physically hand something over (cash/card), and usually get an opportunity to verify the amount, so there's no evidence either way. It will be int…

It happens all the time with credit cards, the practice is known as "skimming"

http://en.wikipedia.org/wiki/Credit_card_fraud#Skimming

Re: The End of the Credit Card? New Square app: Card Case

#106

Post by corin_ »

dredmorbius wrote: post #85
notatoad wrote: post #30

Earlier quoted context omitted.

the article specifically mentions this problem. you should try reading it.

Ok, so I'll raise the ante. What happens when you're chillin' on the street, and your arch nemesis has hacked your favorite coffeeshop's PoS system, nabbing your account details, phone identifier, and photo, and proceeds to stalk you all over town from a distance of 100 feet?

What happens when your arch nemesis has hacked your favourite coffee shop's PoS system right now and proceeds to steal all the credit card numbers that go through it... how is the new scenario any worse?

Re: The End of the Credit Card? New Square app: Card Case

#107

Post by corin_ »

hansy wrote: post #61

When I turned 16 and was excited to drive everywhere, I would volunteer to pick up groceries for the house. My dad would give me his credit card so I could purchase the groceries. How would a similar scenario play out in the Card Case universe? I wasn't allowed to have my own credit card until college and I would never use my debit card for common house purchases.

It's designed as an additional way to pay, not a replacement for cards. So in your scenario you still take your Dad's card, you don't take his mobile phone, and hey presto you can pay like you always could.

Re: The End of the Credit Card? New Square app: Card Case

#108

Post by vidarh »

maximusprime wrote: post #89
patio11 wrote: post #3

That is what disruptive innovation looks like. "Oh look, a multi-billion dollar problem people were trying to solve by getting two sides of the market to simultaneously ubiquitously install new hardware. How about we solve it with stuff they already own plus new software instead?"

Because it's stupidly insecure, unregulated, won't reach mass adoption etc?

Credit cards are stupidly insecure. Last I heard, a few years ago you could buy blocks of thousands of valid, tested credit card with CVV2 values for about the cost of a coffee. Credit cards works because the banks are willing to stretch far to block fraudulent transactions or take them off the bill because having you trust the card makes them lots of money.

The same will be the case here: Unless the fraud takes on truly endemic proportions, far higher than for credit cards, they'll just eat the cost.

Re: The End of the Credit Card? New Square app: Card Case

#109

Post by vidarh »

thinkcomp wrote: post #64
reissbaker wrote: post #60

Earlier quoted context omitted.

Er. But unless you've given Starbucks direct access to your bank account, those are fundamentally card-based too.

Not quite. Starbucks uses its own pre-paid system that does use a plastic card, but one without any major network's logo on it. It's just store credit.

So worse than both cash and cards - suddenly you have to have small balances sitting on multiple proprietary cards. No thanks.
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