Ok, found it...seems it is to bypass any malicious software on your computer only....
Quote:
More importantly, SmartSwipe personal credit card reader is built for secure credit card transactions via the internet. It bypasses malicious malware hidden in your computer. By using SmartSwipe for online shopping, your information is securely encrypted and safe from the moment you swipe your card. Furthermore, your credit card information is safer and secure because it is never stored on your computer.
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but it is a great idea to reduce typos and speed data entry