/// VeriFone Claims Victory Now That Square Is Adding Encryption to Its Card Readers [eMoney]

April 29, 2011  |  All Things Digital

A day after Square announced it had received an investment from Visa , it said it would be adding an additional level of encryption into the card reader that plugs into smartphones. But don’t read too much into that. The decision has everything to do with obeying Visa’s best practices and nothing to do with the accusations of security flaws raised last month by VeriFone, the 900-pound gorilla in the space. Does it mean VeriFone’s concerns are just a teeny-weeny bit valid? “Absolutely not,” said a Square spokesperson. “Of course, Square meets or exceeds all current industry standards. We are confident that Square already reduces the overall risk in the payments ecosystem….As Square is everywhere, we wanted to work with Visa to raise the bar on security for the next decade.” The feather-ruffling started last month when VeriFone issued a fairly bold attack on Square , the San Francisco venture-based company founded by Twitter co-founder Jack Dorsey. VeriFone wrote an open letter to the industry alleging security flaws in the product and also produced a video detailing how easy it would be to steal a cardholder’s information using a Square card reader. Square’s response was that the claims were not fair or accurate and that they overlooked all of the protections already built into your credit card . A lot of comments on this site and others felt the attack was unnecessarily harsh and pointed to VeriFone’s insecurity with their position in the market. While admittedly unconventional, VeriFone’s CEO Doug Bergeron explained his reasons in a lengthy interview . “We collectively need to create new technology to reduce fraud, whether you are a venture-backed business or a big business

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VeriFone Claims Victory Now That Square Is Adding Encryption to Its Card Readers [eMoney]

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