New Technology Turns Webcams Into Credit Card Readers, Improves Conversion Rates

Software company Jumio today introduced a solution called Netswipe Scanning which will allow your subscription site customers to use their webcams as credit card readers. Basically the customer is prompted to hold up the credit card to his or her webcam and Netswipe scans it and inputs the data into credit card processing. Here are a few potential advantages of using this technology:

  • Reduction in fraud. Netswipe turns a “card not present transaction” into an “online card” present transaction. A card present transaction lowers the risk of fraud significantly.
  • Works with your existing payment provider.
  • Customers might be more likely to complete a transaction? This is up for debate as the only data so far is from a focus group run by Jumio which concluded 79% completed a transaction with Netswipe vs. 48% without.

One question I immediately asked when reading about Netswipe: Is this solution PCI compliant? Here’s what Jumio says on its site: “If you use Netswipe Scanning or Netswipe Recycle Swipe you will need to demonstrate that your system can handle this data securely and that you are taking full responsibility for your PCI DSS compliance. One part of this is the need for us to see a clean Vulnerability scan being made on your systems.”