Where does mobile credit card processing security come in to play? The main concern is that consumers’ information cannot be breached during any mobile transaction.
Processors are concerned that processing transmissions might be targeted for intercepted, making private financial information available to thieves and hackers. Some consumer are concerned that virtual wallets might leave consumers open to fraud if their phones are lost or stolen.
For now, it’s likely that criminals are more concerned with obtaining batches of credit card numbers rather than single numbers. The technologies are moving so fast that it may be some time before hackers can quickly break into mobile card transactions. There is sure to be a long learning curve for both merchants using mobile card readers and consumers using virtual wallets when they become available worldwide.
Safety concerns go hand in hand with all technological development we see today. Recently Square released a new version of its mobile card reader that uses encryption to safeguard transactions details. The Intuit Go Payment card reader uses secure socket layer (SSL) encryption. This type of encryption is practically impenetrable, some experts say. There’s security for merchants because card information is not stored in their phones and security for consumers because they can see the swipe happen in front of them.
Virtual wallet security, processors will allow you to load credit, debit and loyalty cards onto your phone and then encrypt that information. A PIN will be required for payment, and the mobile phone will need to be held by the user and waved near a reader. This combination of encryption, a PIN number and the phone never leaving the consumer’s hands should add up to a full security system.