Smartphone Chip & PIN payments: too good to be true?

by Jeremiah on October 24, 2013


Companies offering mobile card payments (Payleven) are beginning to see more merchants opting to take payments via app. This is due to various problems that come with traditional card readers. However, although this industry is growing fast, there still seems to be suspicion surrounding certain it and not a lot is known about how it actually works.

Mobile Chip & PIN payments work by turning a smartphone into a cash register. The merchant just types in the amount of sale after connecting his Chip & PIN reader with his mobile phone, so the amount registers on both devices. This is usually done via Bluetooth pairing. Once the devices are paired, the customer inserts his card, enters his pin and pays; it’s really as simple as taking old and reliable technologies and moving them into the future.
So what about security? Just as with traditional Chip & PIN card readers, the merchant cannot access any personal data from the customer’s card. He simply sees whether or not payment can be confirmed, nothing else. Money is transferred as with traditional card payments; via banks and third parties, so there is also no way for the merchant to trace these details post bank transfer. Of course as a customer you should always ensure that these methods are above board- there will always be tricksters. Never write your pin or card number into someone’s smartphone (the merchant should never ask you for these details) and always be aware of the information they are asking of you. These transactions take place in exactly the same way as traditional card payments, so if anything seems odd to you, don’t continue with payment.

Overall, mobile Chip & PIN payments are a useful way to allow anyone to take card payments, without a lot of the downsides of traditional card readers. However, there are still some misconceptions about the technology, so be sure it is the right solution for you before you consider employing it. If you would like more information visit

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