I have commented on this point in a number of other threads on Quora.Square has bought into the concept of the PayPal model of granting anyone with an email address (more or less) a merchant account.There is very flawed thinking if it is believed this comparison is even in the same galaxy.Remember when you complete a transaction with PayPal, you are taken to a verifiable location on the Internet.u00a0 When you hand over Your credit card to a Square merchant there is no way you can be sure what takes place while they have your card.u00a0 Sure it can be argued you can wait for an email, but this is not practical. Of course any number of frauds can be presented in that situation, not least of which is Skimming.There is also no effective way for Square to fully protect from the cut of a thousand razors (small fraud transactions from 1000s of merchants).Finally, as someone that has worked in the payments industry for 28 year, it is clear to me that Square has farmed out fraud management to the upstream.u00a0 This is a huge failure point and if they are mildly successful it may take years to recover from the negative momentum this mistake may create.Fraud is not a software management solution, it requires something just a little old fashioned,u00a0 many, many people.