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How to Protect Customer Data When Using Credit-Card Plug-ins for Smartphones

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This story appears in the April 2012 issue of Entrepreneur. Subscribe »

Q: Are those plug-ins for smartphones really PCI compliant?

A: First, a primer on Payment Card Industry (PCI) noncompliance. If you fail to protect customers' credit card data, your business could face hefty--even crippling--penalties and fines from payment processors, and could lose the ability to accept cards altogether. (Then there's the prospect of facing angry customers demanding to know how fraudulent charges ended up on their credit card statements.)

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