Square Inc. says its mobile phone payment card-acceptance device will adhere to the Payment Card Industry Security Standards Council requirements.
Analysts have questioned whether the San Francisco company's payments device would offer adequate security. Jack Dorsey, Square's co-founder, provided additional details in an interview with the news Web site TechCrunch last week.
"Everything we're doing will be in compliance with PCI Level 1. We're under the same compliance as someone like VeriFone," Dorsey said. "From the outside, it looks like we haven't gone through the work to actually verify everything. But we're heavily regulated just like VeriFone. And we're going through all the compliance and managing the fraud and risk and all those aspects."
Square is offering a mobile acceptance device that works with Apple Inc.'s iPhone.
VeriFone Holdings Inc. announced a similar product last week, also for the iPhone. VeriFone's chief executive said in the announcement that "banks and processors are concerned about security issues of unapproved merchants using unregulated software and insecure fobs to accept card payments."