VeriFone has taken a shot at Square today, stating its free, headphone jack-based credit card readers are nothing more than skimming devices. They want them immediately removal from the world. That is some big talk. What is left out is that VeriFone is one of the biggest players in this market and Square is making a name for its self. VeriFone’s CEO now has a YouTube video talking about the exploit its thrown together. It seems like TMZ but no this is done by a respectable company. What they don’t tell you:
- For some to skim your credit card they have to steal it or you give it to them. Common sence would tell you don’t give you card to a place you would not shop from. If you give your card to someone with a Square device. They are not shady or hiding.
- Square holds funds for 30 days to make sure the funds are not contested.
No this is not social engineering hack not a technical one or one due to anything Square has done. This no different then giving your card to a guy in the market and having them write it down. People can be shady. It’s not the device. VeriFone’s sample app available for download does just what it is warning against. Can’t say that is safe. That is like putting a house on fire to show that matches can be bad. They sent notices to Visa, MasterCard, American Express, and JP Morgan Chase, which handles Square’s processing. This is what is really shady. A company that’s threatened by Square’s business model is taking shots online since the market is not working.