The Salvation Army Goes Digital

The New York Times is reporting that the Salvation Army is going digital and using Square, a mobile payment company similar to Intuit. I think this one makes me nervous and really puts these companies to the test as any wannabe hacker can now go to almost any chain store and try to steal the data. Many of these devices are used in smaller shops and I am surprised that no one picked up on the fact that many people will be uncomfortable having their cards swiped outdoors by a device they have never seen. Add to this the large number of people uncomfortable shopping online and people cautious using their cards in public and I would expect it to add up to the majority sticking to dropping their change in the bucket. Myself included.

“The Salvation Army plans to put Square to use at 10 locations each in Dallas, San Francisco, Chicago and New York. Bell ringers will carry Android smartphones donated by Sprint Nextel that are equipped with Square’s postage-stamp-size card reader and two apps, one from Square and one from the Salvation Army. Donors swipe a card, just as they would at any credit card processing terminal, and the money goes into the Salvation Army’s account.

Square, which charges a 2.75 percent fee on every transaction, a majority of which goes to the credit card companies, uses the same security measures as financial institutions and, the company said, has an added level of safety because the payer must be present to make the payment.

Greater use of credit cards also helps the Army reduce the theft that nonprofits might experience when cash is collected in small amounts”