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Heightened attention to data breaches tied to point-of-sale software and online shopping carts is bolstering a security-engineering company's argument that the use of PINs on the Internet can be done securely only using a payment card terminal that attaches to consumers' personal computers. HomeATM ePayment Solutions, which is based in Montreal, is close to piloting a personal card-swipe device and PIN pad that consumers plug directly into a PC's USB port. The system requires no installation or software. When consumers check out at a participating merchant's Web site, the site prompts them to use the device to swipe their card and enter their PIN to complete a transaction. If a retailer conducts a successful pilot, the hardware will provide peace of mind for the consumer while turning card-not-present interchange rates to cheaper card-present rates for merchants, contends Kenneth Mages, HomeATM chairman and CEO. The company has an agreement with a major electronic funds network to begin the pilot, but first HomeATM wants to secure participation from a large, Tier 1 merchant, Mages says. Tier 1, or Level 1, merchants process more than 6 million transactions per year. The company is considering several merchants, including a major U.S.-based airline, which Mages declined to name. The device, called SafeTPIN, received Payment Card Industry Data Security Standard certification two weeks ago.
