Verifone slams Square's security

security hole in a free plug-in mobile credit card reader from Square, a start-up created by Twitter founder Jack Dorsey, reports Computer World.

Verifone CEO Doug Bergeron called on Square to recall the devices because they pose a serious security threat to consumers.

The heart of Verifone's attack on Square is that Square's card reader device does not encrypt credit card information while it's being transferred to a host Android or iOS device, reveals Digital Trends.

Bergeron says Verifone is turning over its findings to major card issuers like Visa, MasterCard, American Express, and Square's partner bank JPMorgan Chase.

Dorsey called Verifone's accusations inaccurate and unfair. "Any technology; an encrypted card reader, phone camera, or plain old pen and paper, can be used to skim or copy numbers from a credit card.

“If you provide your credit card to someone who intends to steal from you, they already have everything they need," he says.

JPMorgan Chase processes payments made using Square's products, according to The Los Angeles Times.

JPMorgan Chase backs up the company's technology and "continually reviews, verifies and stands behind every aspect of our service, including our Square card reader”, says Dorsey.