Chelsia Rose Marcius The banned drink was on sale last week.

As we told you last week, The Local found five East Village establishments selling the caffeinated version of Four Loko, the alcoholic beverage banned last year after the New York State Liquor Authority and in-state distributors agreed to stop selling the product.

Officials with the authority said today that they plan to look into the continued sale and distribution of the beverage.

“We’ll have to investigate how this product is still on the shelves,” said William Crowley, a spokesman for the authority. “If someone is selling that stuff illegally, it’s something we’re going to look into.”

Mr. Crowley said that investigation could include examining inventory records to determine where businesses are getting the drink. He said that Four Loko is a small part of distributor inventory, and for wholesalers to continue selling the product to retailers and “take a risk like that would be surprising.”

Store owners found selling the drink face fines ranging from $1,500 to $2,000 and other penalties, including the revocation of their liquor licenses.

Steve Harris, president of the New York State Beer Wholesalers Association, said it is highly unlikely — but not impossible — that retailers are getting the drink from New York distributors who are not a part of the association.

He noted that area businesses could also be “getting it illegally from New Jersey wholesalers or retailers,” or other out-of-state distributors.

“I can tell you unequivocally that none of my members sell the stimulant stuff anymore,” said Mr. Harris, whose group is made up of 44 distributors. “But there is another group of wholesalers that could still have it.”

Ian Duncan Owner Sam Penix makes a coffee at Everyman Espresso. Customers now swipe their credit cards through an iPad to pay

When web designer Matt Norris wants a coffee at Everyman Espresso, he doesn’t reach to his pocket for cash or a credit card. With a quick few swipes on his iPhone and a look at the barista he has paid and his drink is on its way to being made. For the barista’s part, he just looks Mr. Norris in the face, confirms his identity and the transaction is complete.

Everyman, on East 13th Street, is an early adopter of Square, a mobile-based payment system developed by Twitter founder Jack Dorsey. The company’s name derives from the little square card reader that connects to a merchant’s (or anyone’s, for that matter) iPhone or iPad, turning it into a payment device, an approach a number of other companies are also taking. In May, Square launched its new product, the card case, which stores regular customers’ details and allows for flesh payments like that made by Mr. Norris for his coffee.

Following in the footsteps of a reporter from Fast Company, I tried out Square at Everyman, opting for the more conventional method of swiping my card. It works pretty much as you might expect: run the card through the white plastic reader, which connects to the iPad’s headphone jack, and sign using the touch screen and a finger. That last part was a little awkward – the result was a childlike scrawl that only loosely approximated my signature, but it was apparently sufficient for my bank.
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