What Is Online Payment Security?

When it comes to running a business, payment and cash flow are the two most important factors to consider. Although money has been accepted similarly for generations, the modern era has significantly impacted how businesses accept and how customers make payments. Technological advancements in payment methods have made the exchange of goods/services faster and more convenient than ever before. However, businesses must strictly adhere to specific online payment security requirements.

The days of a signature on a bank check determining the legitimacy of a transaction are long gone. Payment security and fraud trends are being studied more than in the past, thanks to the introduction of contactless cards and transferable payment methods. So, what exactly is payment security? And how can you ensure that you’re meeting your company’s obligations? ​

Which Online Payments Are Secure?

Despite the improvements in the way payments are being made today, people involved in an online transaction may experience worry concerning payment security. Questions like, “Is this payment method safe?”, “How do I know this is the safest way to pay online?”, may arise. It could be challenging to know how to securely make payments online.

Now, let’s see some of the most popular payment methods used in buying and selling goods electronically to analyse how they stack up in the aspect of security.

1. Credit Cards

These cards are among the smoothest and risk-free payments methods out there. Usage of credit cards is governed by payment compliance standards such as the 3D secure flows. There is little or no risk when shopping with credit cards, as the money used during the transactions comes from the issuing bank.

2. Debit Cards

Debit card use for online buying is also protected by 3DS standards, which means purchase authentication is done using one-time passwords supplied via text message or email.

Both debit and credit cards are covered by Visa and Mastercard’s Zero Liability Protection schemes. Another element that makes cards safe for online payments is that these programs indicate that cardholders are not accountable for fraudulent charges.

3. eWallets

If shoppers are uncomfortable using credit cards online, they can employ third-party services to act as a middleman in the transaction. A good example of a third-party service are eWallets.

PayPal, a stage wallet and a primary online payment method since its inception in 2002, is an option for users. Users can also make payments using wallets such as GooglePay or ApplePay.

4. Direct Debit

Direct debits are a payment method for customers who want to make recurring payments from their bank accounts. Direct debit is a safe online payment option in general because the setup/authorisation step contains a variety of precautions and verifications. Regulations in some jurisdictions make direct debits more secure.

According to the EU payment legislation, a shopper can request a direct debit refund for a contract that has ended within eight weeks of termination.

5. Wire Transfers

Some merchants still use this online payment technique, which involves the shopper wiring money straight from his bank account to a merchant’s bank account. The security environments of both institutions determine the security of wire transfers. Wire transfers are vulnerable to fraud, especially when the merchant’s identity isn’t easily verified.

How to Make Online Payments Secure

As a merchant, you have a wide range of options for ensuring the security of your payment system. In addition to reminding customers of the advantages of online payments, educate them on how to make them properly and what your company is doing in this area.

Make your users feel protected when they visit your website or use your app. Show off those indicators that emphasise you’re a security-conscious seller. Use an SSL/TLS certificate that will display the padlock icon in the browser’s address bar. It is a symbol that shoppers identify with safe transactions and payment method icons which your users are familiar with. It makes your customers trust your business, just like Visa, Mastercard, or PayPal.

1. Users Should Be Informed

The entire online payment process becomes more visible and resilient in the face of fraud attempts by communicating with users about the status of their transactions, delivery details, and previous orders.

2. Examine Your Orders

Take steps to evaluate your orders regularly to maintain control. You’ll be able to see whether there’s any dodgy behavior or attempted fraud on your systems this way.

3. Maintain Your Composure

Take all required steps to assure payment adherence to applicable standards and regulations in the markets you’re selling in. Using a professional payment service provider might help you save time and money when it comes to compliance.

4. 3D Secure Gateways Should Be Used

With two-factor authentication, it needs an extra degree of protection and protects merchants against chargebacks.

5. Enable a System for Verifying Addresses (AVS)

Inquire with your payment provider about enabling AVS for your shop. Since criminals rarely have access to the billing addresses of stolen/cloned cards, this additional verification step may lead to fewer fraud attempts.

Merchants and buyers may still be concerned about the security of online payments. Still, as we’ve seen, several processes in place have resulted in significant advancements in the industry in recent years.

Though the number of security procedures that must be adopted may appear daunting, dependable partners such as banks or payment service providers may relieve the merchant of most of this burden. Begin by identifying what is currently missing from your internet security setup, then work your way towards gradually improving it.

Tips on Secure Payments

Complying with global standards is key, and would enable you to secure your customer’s personal information. There are, however, several processes that you can follow to enhance payment security in-store and online.

1. SSL Certification

This certificate validates and provides an encrypted connection to a website. When handling delicate information like card details, you must have an SSL certificate as it shields your customers from cyber hackers that can cause online transaction security Issues.

You can buy SSL certificates from a range of certificate providers. However, ensure you read reviews from other customers before making a purchase.

2. Fraud Detection Software

It’s usually a good idea to have as much information as possible when it comes to fraud. Businesses will, unfortunately, have to deal with fraudulent transactions from time to time. In similar circumstances, the usefulness of fraud detection software cannot be overstated.

These tools will examine transactions and look for fraud indicators. You can choose to refuse the transaction by utilising this essential information. As a result, the fraud victim will not be out of pocket, and your company will not lose money due to the danger of a chargeback.

3. 3D Secure

This would soon become mandatory for all businesses accepting payments through cards. 3D Secure must be very much active on your payment gateway.

Customers will be prompted to enter additional information to establish that the cardholder is the one completing the transaction; this is safe information that only the cardholder should know, and the procedure occurs on the bank’s website, not yours.

At this time, 3D is only available for transactions in which the holder of the card’s bank is seen as “risky”. Contact your payment provider to get your 3D Secure active.

4. Ascertain PCI Compliance

“The easiest way to ensure that payments made on your website are secure is to use the SSL protocol.” All client information is protected with an SSL certificate, which decreases the danger of cyberattacks. To add an extra layer of protection and develop trust, make sure you follow the Payment Card Industry Data Security Standards (PCI DSS).

5. Sensitise Users About the Benefits of VPNs and Security

In addition to a site’s methods to protect its users’ data, such as the SSL or cloud storage, it is imperative to keep your customers abreast of certain vital information. The use of VPNs can reduce the tendencies of customer data loss.

6. Check to See if Your Hosting Provider Has Security Measures in Place

Additional security measures must be put in place when accepting payments online. Ensure you cross-check if the company hosting your site has the necessary precautions in place for maximum protection. Also, make sure that your website employs Secure Socket Layer (SSL) for data encryption.

Conclusion

With the rise of payment methods that do not require contact or are transferable, accepting and making payments is much easier. However, customers and business owners must come together on a common front to agree on convenience and optimum security.

Now that you have a good understanding of payment security and how you can enhance it, you’re on the right track to running a secure and reliable business.