Should you buy an iPad credit card reader?

Staff

4 Min Quiz

Image: refer to hsw

About This Quiz

Swipe-and-go credit card readers are all the iPad rage. Are they for you?

Which of the following is not a popular iPad credit card processing app?

Square is the market leader. Card Me is what 30-somethings hope will happen in a bar.

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After you click "charge" on an iPad credit card reader, where is the first place the data is transmitted?

There are many links in this transmission chain, the first of which is to a cell phone radio tower.

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What currently provides the most security risk for iPad credit card customers?

Generally, as long as your iPad stays clean of unwanted downloads (malware), your customers' information stays safe.

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True or false: iPad credit card processing applications are generally free downloads.

Until 2011, mobile credit card apps cost upwards of $20 to download. Now they're almost always free on the front end.

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True or false: To accept credit card payments in any format requires the hardware of a plug-in credit card swiper.

This is a bit of a trick question. A credit card swiper makes handling payments much easier, but most apps still allow you to type in credit card numbers by hand.

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Generally, what is the price range you should expect to pay for a plug-in credit card swiper to accompany your iPad credit card reader app?

Most apps will send you the hardware for free.

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An iPad credit card app that charges a registration fee and monthly premium for unlimited sales would be best for which of the following businesses?

Paying a monthly fee may allow you to save per transaction and percentage fees, making it best for a business that deals in volume -- for example, a low-end street vendor.

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An app that charges a per-transaction fee and a percentage of each sale would be best for which of the following businesses?

If your number of sales and total haul is low enough, you might be better off paying a per-transaction fee, rather than a monthly cost. The answer is a psychology practice with few clients.

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An app that allows vendors to buy bundles of 20 transactions for a one-time cost of $9.99 would be best for which of the following businesses?

If you own an art gallery, where people pay more than $1,000 per purchase, you'd be better off not paying a percentage for processing. And with infrequent sales, a bundle may allow you to duck monthly fees.

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Carnegie Mellon behavioral economist George Loewenstein said what of credit cards (compared to cash)?

In a 2007 paper published in the journal Neuron, Loewenstein showed that paying with credit cards is literally less painful than paying with cash.

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Which of the following is not a common feature of iPad credit card processing applications?

While credit card processing applications save customer data, they don't save customers' financial information.

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Which of the following is not a capability of iPad credit card payment apps?

You will need a credit card "swiper" accessory, which most apps offer for free.

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What most accurately describes the credit card reader hardware that commonly comes with iPad credit card processing apps?

Here's a good example: Square comes with a quarter-sized swiper that plugs into your iPad's headphone jack.

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iPad credit card reader apps that charge a percentage of each sale commonly charge in what range?

While payment plans vary widely, most apps that charge a percentage keep it in the 1.5 to 4 percent range.

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In January 2011, TechCrunch.com reported that mobile payments company Square was valued at what amount?

With the tablet market blowing up, so too are the remora-like apps that support them -- to the tune of Square's $200 million.

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Juniper Research predicts that by 2015 the mobile payments sector will be worth how much?

The answer is $670 billion. That's almost triple the 2011 value.

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What best decribes a "drive-by download," which may be iPad payments' greatest risk?

Downloads from the Internet have the potential to install unwanted malware on your iPad system.

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True or false: While accepting credit card payments with your iPad requires additional hardware (or typing credit card numbers in by hand), your iPad comes equipped with the ability to pay for items.

Near-field communication chips installed in iPad 2 (and iPhone 5) allow them to communicate with payment centers, for example at Starbucks.

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In contrast to the 1 to 4 percent that iPad credit card processing apps charge per purchase, for merchants grossing less that $3,000 a month, what does online payment giant PayPal charge?

The answer is 4 percent plus $0.50 per purchase. Higher sales totals are charged lower percentages.

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What security certification should you require of your iPad credit card reader app?

PCI DSS stands for Payment Card Industry Data Security Standards. The remaining answer choices are acronyms taken from the Star Wars universe and include Single Troop Aerial Platform and New Republic Intelligence.

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