Free Enterprise - The FindLaw Small Business Law Blog

iPad POS Systems Touch On a Few Legal Concerns

iPad POS systems may be replacing older, wired models in restaurants and retail businesses, leaving business owners to consider jumping on the mobile payment management train.

According to Forbes, some of these iPad Point of Sale (POS) devices have even been tested in college football stadiums, able to handle more than 5,000 transactions in a matter of hours.

With benefits like these, are there any legal risks to using iPad POS systems?

With Mobile Power Comes Mobile Responsibility

The presence of an iPad as a cash register may give your business a sleek and techno-chic vibe, but it may also get you in trouble with the law if you're not careful.

Mobile payment companies that have allowed iPad users to turn their devices into portable POS devices, like Square, have hit legal walls in certain states because they are not properly licensed.

These state laws typically focus on security features of payment systems that transmit money, but some iPad POS systems, like Revel, are PCI compliant.

PCI (Payment Card Industry) compliance gives companies (and customers) assurance that credit card transactions are protected at a required level from hacking and data theft, which are liabilities that no business owner needs.

Cloud Sales Management Risks

Aside from managing payments, iPad POS systems like NCR Silver can track sales, product orders, and manage reports, allowing business owners to interface with their companies almost anywhere.

But cloud-based mobile solutions like these have their weak points. While apps that combine customer contact information with sales reports may be an incredibly powerful tool, in the wrong hands, that data can be used to steal customers' identities. And your business could be liable.

Security issues also lie with the chosen hardware, the iPad, whose newest operating system has already shown two major security flaws. You may be able to batten down the hatches slightly by keeping your iPad POS systems on a separate Wi-Fi from your free guest network. But with information in the cloud, a hacker may be able to access it far outside your business' location.

Consider these legal concerns when pondering your iPad POS options. If you are worried about potential liability from the new system, contact an experienced business attorney near you.

Follow FindLaw for Consumers on Google+.

Related Resources: