He confirmed my assumption that there’s really no security risk involved in importing your books into BookShout. He also pointed out the same thing when I took a closer look at my own account: Amazon only shows the last 4 digits of your credit card number. IOW, you could have someone’s Amazon log-in credentials and still be unable to grab their credit card number (other than the last 4 digits).

At BookShout, we do not store your Amazon or B&N password when you import your books. In fact, if you import your books, buy another book from Amazon and then want to import the new one, you have to enter it all over again. An Amazon account can only be imported into one BookShout account. In other words a user cannot import the same Amazon account into multiple accounts. The only data that we capture during the import process is your current Amazon or B&N book list.

As Amazon will tell you, they have one of the most sophisticated encryption and credit card protection technologies in the world, which is why they are such a massively successful retailer. If it was as easy to steal someone’s credit card as just getting their username and password, then they couldn’t stay in business. At best, if someone has your info they could see the last 4 digits on your cards and/or order some stuff to be shipped to your house. Amazon would be the first to tell you that your personal financial data is safe with them, and I concur.

I do think the Mint comparison is a good one. Remember, Mint wasn’t always owned by Intuit. In fact, it had a strong user base long before it was acquired. And they aren’t just asking you for a retailers information–they are asking you for your personal banking information. The reason most of us don’t hesitate is (1) because we are comfortable that the masses are doing it and (2) the precedent has already been established that this type of aggregation is safe. We, as a publishing industry, haven’t achieved this level of comfort yet. We at BookShout are trying to change that. In a couple years, we believe that shifting digital books from one reader to another will be commonplace.

So who are we? We are a young company, certainly not as established as Amazon or B&N. But we have been vetted by a number of the Big 6 publishers and they are trusting us with their content. And the process of creating legitimate DRM, protected servers for ePubs, appropriate reporting for the world’s largest publishers, and PCI compliant systems is no easy task–which we have accomplished. We also have raised millions in financing to help us create a better user experience for you, the reader. And if we get acquired, which we have no idea when or how it would happen, the company still does not have your Amazon login or password–we don’t store it. Believe me, we know it is our burden to earn your trust. That is what we are trying to do.

Appreciate your continued support and patience as we grow. Please don’t hesitate to let us know how we can better serve you.

“Ilian compared BookShout’s model to personal finance site Mint, which imports transactions from users’ bank accounts.”
But Mint is owned by Intuit, a company with a lot at stake (capital and reputation). Users probably can feel pretty sure Intuit understands PCI compliance and has every incentive to keep their logins safe.

These Bookshout folks, on the other hand…who are they? Why would you give them your login at the world’s biggest online store? And what happens if Bookshout does get acquired, as it sounds like they’re hoping? Who’s got your Amazon and Nook logins then?