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CardMunch is a mobile business card transcription service.

CardMunch was started in December 2009 to solve a very simple problem – converting business cards into electronic contacts on your phone. CardMunch for iPhone launched on the AppStore in August 2010 and the response from users was overwhelming.

LinkedIn has bought CardMunch, which scans your business cards and accurately converts them into phone contacts using Mechanical Turk. The price of the acquisition was not disclosed.

In a statement released on the CardMunch blog, the company said:

Our long-term vision for CardMunch has been to help manage business contacts and help you to leverage your contacts and connections for doing business. With that in mind, we are thrilled to announce today that CardMunch is now a part of LinkedIn! LinkedIn is the world’s largest professional network and as such, provides the perfect platform for us to execute the CardMunch vision.

As of today LinkedIn’s Terms of Service and Privacy Policy will apply to the data users upload to CardMunch. The service which used to cost $2.99 for the app and .25 cents per card after the first 10 cards, will now be offered for free with a refund given to people with pre-existing credits.

You can download the application here

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Thomas Oppong is the founder @Alltopstartups.