Inner Fence, which makes the Credit Card Terminal app for Apple Inc.'s iPhone, said it is now shipping the Credit Card Reader, which attaches to an iPhone's dock connector.

The Seattle company is offering the Apple-authorized card-swipe device for free to new merchants. Additional units are available from Inner Fence's website for $79, according to the company. Inner Fence is working with Merchant Focus, a Dublin, Ohio, merchant-account payment gateway, to help with distribution.

The company says it is shipping Credit Card Readers for 3G and 3GS iPhones now and will have iPhone 4 units available in the fourth quarter.