Merchant Services Inc. has partnered with VeriFone to distribute and process the company’s Payware mobile credit card encryption sleeve.

The sleeve plugs into the iPhone dock connector, cradles the phone and is ready to read the cards. According to MSI, Payware Mobile allows the secured acceptance of credit cards anywhere, anytime with an iPhone 3G or 3GS and a merchant account.

“The strategy is to create new opportunities for our ISOs in a manner that diminishes the opportunity for compromise,” said Michele Menza, legal advisor at MSI, New Providence, NJ. “The system will allow our ISOs to greatly expand their merchant account portfolio, allowing mobile processing.

“Security is paramount to MSI,” she said. “Payware Mobile is the only mobile product with patented end-to-end encryption – the moment the card is swiped data is encrypted in transit to the issuing bank, preventing sensitive card data from ever entering the iPhone or being intercepted in transit.”

MSI provides merchant services, including merchant accounts, credit card processing equipment and ISO partnership opportunities.

VeriFone is a worldwide provider of electronic payment services such as the point-of-sale merchant-operated and consumer-facing self-service payment systems.

Mobile payment sleeve
The Payware service combines the payware mobile application with an iPhone and a card encryption sleeve, making the device a fully functional payment platform, according to MSI.

The service features the ability to specify what tax percent to use for each sale in each state.

Additionally, tips can be added manually or by the application based on a percentage of the sale.

“Payware Mobile uses same standards as ATMs and traditional point-of-sale terminals,” Ms. Menza said. “Payware is also attractive because it plans to bring the solution onto other smartphone platforms, including BlackBerry, Windows Mobile and Android.

“Transactions initiated by Payware Mobile are managed through Payware Mobile secure gateway then routed to the bank, allowing credit card transactions as well as check transactions,” she said.

Mobile transaction
The sleeve includes a built-in stylus for signature capture.

Additionally, VeriFone claims that its payment service puts mainstream payment processing capabilities in the hands of merchants in need of a mobile card acceptance.

“The installation of the credit card encryption sleeve couldn’t be easier,” Ms Menza said. “It allows the secure acceptance of credit cards anywhere, anytime with an iPhone 3G or 3GS and a merchant account.

“The application software is available free at the iPhone Apple Store,” she said. “The sleeve is readily available to the ISOs of MSI.

“There is more of a demand for mobile payment, because the United States is increasingly becoming a service-oriented economy and even stationary merchants like the idea of using this product with their phone.”