Webcams as Credit Card Readers? Jumio's New Technology | CreditShout

Webcams as Credit Card Readers? Jumio’s New Technology

By Kaitlin T / July 27, 2011


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A new product by Jumio was announced this week—“Netswipe,” which allows users to purchase items online by using their webcams. It’s simple. A merchant signs up for Netswipe, then posts a link on their website that customers can use to check out. The customer holds his credit card up to his webcam, lets it read the card, and enters his CVV number (security code, usually on the back of the card).

Many merchants have already signed up, which means that pretty soon you will be able to use your webcam to check out at some of your favorite websites. Besides the cool factor, Netswipe also saves customers time and hassle typing in a 16-digit credit card number. Plus it protects against fraud. Netswipe’s security is top-notch and it has some definite advantages over standard check out systems. Some of the best features of this new technology, as well as where you can sign up, are listed below.

Small Business Tool

Netswipe is a cool new technology that larger businesses can add to their payment options, but it’s also great for small businesses. Just like Square, Netswipe doesn’t require business owners to buy expensive hardware to get started processing payments. Also like Square, the fee is a flat 2.75% of whatever you sell. Unlike Square, though, it doesn’t require any hardware except what many customers already have in their homes. All you have to do to get started is sign up and install the software. Depending on how large a company you have and whether you have tech experts on your beck and call, you can decide to integrate it into your existing payment system or just use it as is.


Jumio claims that one of the main benefits is its security. Its experts took time to make sure Netswipe adhered to all of the latest security standards. It also gives you security in that the card must be present to make the sale. It’s easy for hackers to steal credit card numbers, but if they need the actual card to make the purchase, things get a lot more difficult. Netswipe doesn’t store your info, either. Once the payment is completed, your card information is no longer stored on their servers, so no one can access it.

Customer Retention

Jumio claims that Netswipe lowers the churn rate. This means that more of the customers who make a purchase will come back and make another one. As most business owners know, retaining current customers is important—often more important than reaching a new one. Besides the churn rate, Netswipe’s focus group shows that this new technology lowers the percentage of users that abandon a purchase—from 52% to 21%. This is probably in part because the program allows users to check out much faster, giving them less time to change their minds or get frustrated with the check out process. According to a survey of the focus group, the average time saved by using Netswipe is 2.3 minutes.

Try It Out

If you’re a merchant that wants to try out this cool new tool, just visit to get started. Once you enter your name and email address and create a password, you’ll receive an email asking you to verify your account. When you verify, you’ll get an email to test out their trial mode, and you can play around with it to see how it works and if you like it. When you’re ready to activate, you click the big green “Activate” button, fill out some more information about yourself and your company, and you can start using Netswipe. Keep your eyes peeled for a mobile app coming soon that uses your phone’s camera to do the same thing.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.

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