RSS
Home
Is SmartSwipe a smart move for consumers?
Print
Email
RSS
Subscribe
SmartSwipe home credit card reader
A Canadian company launched a new gadget Tuesday that lets a consumer plug a credit card reader directly into their computer to buy stuff online. While there is a certain wisdom behind a product that better secures online purchases, I wonder if this makes it easier for people to pile on even more credit card debt, particularly in a recession.
NetSecure Technologies, of Regina, in the province of Saskatchewan, sells the “SmartSwipe” credit card reader for $99.95 and began inviting people to visit its Web site to see a demo of the product. Users plug the device into a USB port on their computer and swipe their credit card through a slot on the device, just like they do at a store.
SmartSwipe works by encrypting the personal information of the card holder -- card number, name, address -- before it gets to the computer so it is encrypted throughout its trip across the Internet to the merchant’s bank and is neither stored on the bank’s computer network or the merchant’s.
The amount of credit card theft is astonishing. I know, as I’ve written about it several times. But the answer is not to refrain from shopping online. Information from a credit card transaction in a store or at an ATM can be stolen off a bank or merchant server just as it could be from an online transaction. But SmartSwipe offers one extra level of security that consumers need.
By encrypting credit card information before it reaches the computer, SmartSwipe guards against the risk of malware, surreptitiously added software that can steal passwords and other information, or, in some cases, record keystrokes to capture a credit card number. If you’re not entering the credit card number on your keyboard, there’s no number to steal.
“Hackers have extremely sophisticated methods of circumventing traditional Internet security to steal your personal information right from your computer,” states Daniel McCann, president of NetSecure Technologies, in a news release. “SmartSwipe facilitates transactions that leave no trace of credit card data, guaranteeing your information remains secure."
I used to joke that I wasn’t worried about being
a victim of credit card theft because any thief couldn’t possibly spend more on my card than I already do.
But I definitely see a downside to having a credit card reader attached to the personal computer: Impulse buying. Given the current recession in which unemployed people are paying bills with credit cards, a tool that makes it easier to buy more stuff doesn’t sound very wise.
According to the Web site CreditCards.com, consumer debt is piling up fast in this recession:
“As of March 2009, U.S. revolving consumer debt, made up almost entirely of credit card debt, was about $950 billion. In the fourth quarter of 2008, 13.9 percent of consumer disposable income went to service this debt."
If you're going to shop online anyway and can manage your credit, SmartSwipe adds an important extra layer of security. But if you're deep in debt, but are still easily influenced to buy, SmartSwipe may be an enabler of your accumulating even more debt.
(Photos courtesy of NetSecure Technologies)
Related Articles:
Add a Comment
