Our shopping habits have changed. eCommerce comes with many benefits, but there are also new possibilities for cybercriminals, who steal our personal and banking details. As a merchant, you need to do everything within your power to make your customers sure that the transactions on your website are secure. Customers usually can’t choose their own payment gateway, so it’s up to you to make the best choice.
Just look at the major data breaches that have occurred in the last few years alone. Even brands such as Sony, Target, and T.J. Maxx are not immune to cybersecurity issues. It is important that your company is proactive about cybersecurity rather than waiting for a crisis before taking action.
The average consumer doesn’t even think about the whole process that takes place when he/she pays for items at an online store. It is also important to understand that in the payment process there are many players, not just you and the customer(s). There are also card brands, acquirers, and issuing banks or other companies. Therefore, It is crucial to have the whole process under control and reduce the risk at every point possible. Making yours and your customers’ data secure is one of the most important issues for your online business.
Credit card payments are still the most common type of payments, but unfortunately with the growing number of online payments, there are also more fraudsters. Data thieves have a huge amount of knowledge on how new technologies work, so they are always looking for the vulnerable points of payment processing.
It’s not easy, and almost impossible, to eliminate fraud, but there are many ways to secure your data and prevent it from being stolen. To ensure that payment processing on your website is secure you must know about SSL, PCI, tokenization, 3D Secure, anti-fraud tools, and so on.
F.A.Q about Payment Security
How do you provide secure online payments?
It’s your responsibility to have the purchasing process under control and reduce the risk of fraud at every step of checkout. Data thieves’ knowledge of how new technologies work is impressive. For that reason reducing the vulnerable points of payment processing is a crucial part of every eCommerce business. You need to know the payment security solutions.
The first thing you need to do for your payment security is ensuring that your website is secure. Are you using SSL protocol to encrypt information on your site?
SSL certificates show your website is protected and will grow your online reputation as well. All information, such as credit card details and other sensitive data is protected. It also improves brand awareness and builds credibility with customers. The SSL is symbolized by a padlock icon in the URL bar and the web address begins with https. The SSL comes with many benefits for your online business, so make sure you’re using it to protect your customers well.
You’ve probably heard about PCI Compliance if you process payments on your website or looked into implementing online payments in the future. Payment Card Industry Data Security Standards (PCI DSS) tell merchants how sensitive data used in payments should be secured. It requires data encryption to provide payments without using real card data that’s visible while processing. Note that PCI guidelines also consider tokenization in the future version.
Doing business should be based on trust and PCI compliance helps improve security. You need to do everything to decrease the risk of payment and data fraud that could damage your brand’s reputation.
Tokenization is the technology that makes it easier to improve payment security and provide a payment process without vulnerabilities. Tokenization makes customer authentication during the purchase possible without affecting the transaction’s security.
In short, a token is a random string of characters that replaces sensitive information, such as a 16-digit credit card number. The payment process involves sensitive data, so merchants need to understand where the vulnerabilities exist. With tokenization, the chances of a data breach are reduced. Even if a token number is stolen, it would be meaningless to the fraudsters.
Moreover, considering a payment solution with 3D Secure helps prevent fraud in online credit and debit card transactions. It gives extra protection to transactions and comes with many benefits. 3D Secure creates a secure password for the shopper’s credit card. Every transaction is then verified with the password, which adds an additional layer of security. It can decrease the number of fraudulent transactions and boost your revenue.
Address Verification Service
You can also use an Address Verification Service, which requires customers to provide the billing address associated with their credit card. When the address on the card matches with the one in bank’s documents, the transaction will go through.
Many companies have a problem determining the location and storage of their payment data, but 42% of companies claim that payment data is at the greatest risk when it is stored. A Global Study on the State of Payment Data Security shows that over 50% of organizations had a breach involving payment data within the past two years.
How do you minimize the payment risk?
Payment risk is the risk of loss due to some “payment events”. Many companies, especially ones that handle a high volume of online payments, have been forced to drive their payment risk management strategies to avoid difficulties and harsh consequences. Keep in mind that every payment method involves risk and these could be fraud or operational risk (when the financial loss is due to human or technical errors).
It’s important to monitor your payments to predict the possibility of the risk. But, if you make a wrong decision, it could be costly. Sometimes it’s better to let a specialized company manage the payment risk on your behalf. You can also choose a payment gateway with fraud prevention tools to manage the risk.
Knowing the risk helps you to reduce the likelihood it will occur. You need to consider what the potential threats are, how quickly it can be detected, and how much it could cost.