You can use the protector. But it does not do protection. In some cases, it compromises protection already inside adjacent appliances. Even the manufacturer says to not use it on an ungrounded receptacle. But you can use it. You are permitted to compromise existing protection.
Do you want protection? Or do you really only need a power strip so that all interconnected appliances can further protect themselves by sharing a common ground inside a power strip? What specific problem is to be solved?
The best information on surges and surge protection I have seen is at:
<http://www.lightningsafety.com/nlsi_lhm/IEEE_Guide.pdf>
- "How to protect your house and its contents from lightning: IEEE guide for surge protection of equipment connected to AC power and communication circuits" published by the IEEE in 2005 (the IEEE is the major organization of electrical and electronic engineers in the US).
And also:
<http://www.nist.gov/public_affairs/practiceguides/surgesfnl.pdf>
- "NIST recommended practice guide: Surges Happen!: how to protect the appliances in your home" published by the US National Institute of Standards and Technology in 2001
The IEEE guide is aimed at those with some technical background. The NIST guide is aimed at the unwashed masses.
Plug-in protectors will actually protect equipment even with no ground wire (but I wouldn't recommend it - if you do, plug it into a GFCI). Read the IEEE surge guide starting page 30. Plug-in protectors don't protect mainly by earthing a surge. They protect by limiting the voltage from all wires (signal and power) to the ground at the protector. The voltage between the wires going to the protected equipment is safe for the protected equipment. With no ground wire that still happens, but the voltage shifts detailed in the IEEE surge guide may be higher.
If using a plug-in protector all interconnected equipment needs to be connected to the same protector. External connections, like phone, also need to go through the protector. Connecting all wiring through the suppressor prevents damaging voltages between power and signal wires. (Did the phone or other signal wire go through the plug-in protector for the "credit card machine"?)
The NIST surge guide suggests that most equipment damage is from high voltage between power and phone/cable wires.
A service panel protector is a real good idea. But from the NIST surge guide:
"Q - Will a surge protector installed at the service entrance be sufficient for the whole house?
A - There are two answers to than question: Yes for one-link appliances [electronic equipment], No for two-link appliances [equipment connected to power AND phone or cable or....]. Since most homes today have some kind of two-link appliances, the prudent answer to the question would be NO - but that does not mean that a surge protector installed at the service entrance is useless."
That is because a service panel protector does not limit the voltage between power and phone/cable/... wires. Anything connected to only the power wires is very likely protected.
If power, phone, cable, dish enter near each other, and entry protectors for the signal wires have short ground wires to a common connection to the power earthing system, then all wiring is more likely protected. The National Electrical Code, which is the basis for local codes, does not require residential power, phone, cable, ... to enter near each other. The IEEE surge guide, in the example cited above, shows a cable entry point that is too far distant. In that case the guide says "the only effective way of protecting the equipment is to use a multiport [plug-in] protector." (Another way would be to run the phone/cable/... wire to the power service area and install another entry protector with a short ground wire to the common connection point. Wires to the house are from that point.)
The maximum surge current that has any reasonable probability of occurring is 10,000A per power service wire. (This is mentioned in the IEEE surge guide.) That is based on a 100,000A strike to an adjacent utility pole in typical urban over head distribution. Service panel protectors with much higher ratings are readily available. The IEEE surge guide has recommendations. (Protection from a direct lightning strike to the house requires lightning rods.)
The author of the NIST surge guide looked at the amount of energy that can reach a plug-in protector. With branch circuits of 10 m and longer, and surges up to 10,000A (as above) the maximum was a surprisingly small 35 joules. In 13 of 15 cases it was 1 joule or less. A plug-in protector with high ratings and CONNECTED CORRECTLY is likely to protect from a very near very strong lightning strike.
One reason the energy is so low is that at about 6,000V (US) there is arc-over from service panel busbars to the enclosure. After the arc is established the voltage is hundreds of volts. Because the enclosure is connected to the earthing system most of the energy is dumped to earth. The neutral is connected to ground/earth at the service (US) further limiting the exposure in the house.
Neither service panel or plug-in protectors protect by absorbing the surge. They absorb some energy in the process of protecting.
Contrary to what some have said, the IEEE and NIST surge guides both say plug-in protectors are effective.
For about 10 years the NEC has required including a "concrete encased electrode" (commonly called a Ufer ground) for most new construction. The minimum length of the conductor is 20 feet, and can be rebar. Ground rods are lousy earthing electrodes.
If you unplug equipment for lightning protection you also need disconnect phone connections.
