Problems (and Payoffs) with Wireless POS Terminals

T he paradox of the latest developments in technology and state-of-the-art ways of doing business goes back to some old-fashioned clichés: What's good for the goose is not necessarily good for the gander. One size does not fit all.

This seems to be especially true concerning wireless technology when applied to retail cash registers. Wireless point-of-sale terminals might make sense for some types of merchants, such as independent craftspeople or those who travel from location to location.

Some larger chain stores that use wireless registers to transmit information via LANs are finding out how easy it is for hackers to access tidbits like customer names, credit card numbers and expiration dates. Concessionaires for The Ringling Brothers Barnum & Bailey Circus are finding that wireless POS devices make selling trinkets and souvenirs easier.

Best Buy "deactivated" wireless cash registers in its 480 stores when the chain became aware of a potentially major security problem:

Wireless networks beam the data to a central computer somewhere within the store. The information is broadcast as a radio wave signal, which travels beyond the boundaries of the store walls. Researchers sitting in cars parked outside the store claim to have listened in on credit card numbers in transit.

Laptop computers with special antennas are all that's necessary to hack into the transmissions. If the information is not encrypted and transmitted in clear text, it can be listened to as it's beamed around the store.

Security measures are available and in place, but whether the large stores are utilizing them is another issue. Other retailers who use wireless technology include Wal-Mart and Home Depot; Home Depot said wireless transmissions are used for price scanning and other back-end functions, such as inventory control.

Working without nets is nothing new for some tightrope performers, but now working without wires is enhancing Ringling Brothers and Barnum & Bailey Circus concession sales.

Payment processor Lynk has teamed with U.S. Wireless Data and uses the Motient wireless data network to provide credit card acceptance via wireless handheld terminals in all 90 North American cities the circus will roll into this summer. The system operates on Lipman 3010 POS terminals and offers real-time card authorization.

Going wireless has advantages for circus sales. The mobility of the system lets concession sales staff move around the Big Top as business dictates. Wireless equipment lets them process electronic POS transactions in locations that often don't have phone lines.

Wireless also makes it much easier when it's time to fold the tents and move on to the next town, as long as the lions, tigers and elephants cooperate.