LITTLE ROCK, Ark. (KTHV) - They're the newest business friendly mobile device to hit retailers in Little Rock, and we're learning more about how safe they are for consumers.
Square credit card readers easily plug in to iPhones, iPads, and Android devices and accept credit card payments for a fee of about 2.75 percent. They're popping up in restaurants and shops all around Arkansas as more business owners make the switch to the new technology.
"For us, it just seemed like a smart idea at the time, so that's why we chose it," explained Don Dugan, owner of Dugan's Pub and Stratton's Market downtown. "We run their card, spin it around, they sign with their finger, then they're done."
All of the transactions are stored on Square's website. Dugan said he typically receives a deposit for all transactions the following business day. The only tough part with Square is the business day ends at 6 p.m.
"The biggest headache I have is reconciling it on my bank statement when they split the deposit," he added.
So how safe is it for consumers? Technology experts told THV11 these products function just as any other credit card machine, and personal information is never automatically stored on the mobile device.
"The mag stripe on a credit card is fairly simple. It basically just contains just enough information to convey the credit card number, so when you swipe it for all intents and purposes, it's just functioning as a keyboard for the most part," described Sean Terry with End2End Business Solutions in Little Rock. His company uses a different product, Intuit GoPayment to accept payments from customers.
Learn more at www.squareup.com.