Everything You Need To Know About Payment Security

by Dan

The ecommerce revolution has given exposure to lakhs of small businesses and enterprises that were once limited to a specific geographical area. It has propelled the organic growth of businesses by giving them access to a wider customer base that transcends borders. 

However, the downside to this growth on the back of technology is that it lays bare the vulnerability to cyber threats and attacks. The spurt in online transactions over the last decade has made online payments the breeding ground for cybercriminals looking for a quick buck. Data security breaches and online financial fraud have led to a staggering 90 percent rise in Account Takeover (ATO) cases in India in 2021, according to a study by Technisanct Technologies. 

Data thieves’ have an ever-growing knowledge of how the latest payment technology works and dodge security systems. For this reason, reducing the vulnerable points of payment processing is crucial for every eCommerce brand and online store.

Most integrated payment systems handle the security burden and have safeguards in place to combat fraud. However, to ensure that the purchasing process is protected by state-of-the-art infrastructure, businesses need to be vigilant about choosing a secure payment gateway.

What is payment security?

Payment security refers to the rules, regulations, and security protocols to protect customers’ payment data, privacy, and money. Payment security norms adopted by a merchant can stave off cyber-attacks and facilitate secure transactions- a USP that businesses can capitalize on. Integrated payment systems can solve this problem for businesses and enable a payment gateway that hosts fool-proof transactions.

Managing safe data and payment exchanges between all parties is the focus of a secure payment gateway. Here’s a closer look at each payment security solution.

  • Secure Connections with SSL

An SSL certification is vital for businesses to process online payments securely. A Secure Sockets Layer (SSL) is an encryption method used to transmit sensitive data across the web. Integrated payment systems use this encryption method to transfer credit/debit card information and sensitive customer data during an online transaction. Since hackers cannot make sense of the data without the encryption key, the possibility of any data breach is nullified.

A website that has implemented SSL sports a green address bar with a lock icon next to the browser URL. A browser link that begins with an “HTTPS/:” address implies that the site is SSL certified and safe to use. Modern-day internet shoppers are aware of these security markings on a webpage. Therefore, it’s wise to have these markings in place.

When a website is not SSL certified, the browser may prompt a warning to customers of the security risk involved in transacting on such a website. This can deter customers from completing the payment and abandoning the transaction.

  • PCI Compliance

Payment Card Industry Data Security Standards (PCI DSS) offer guidelines for businesses to create a secure payment infrastructure. There are some websites that allow storing card details with the customer’s permission for faster checkouts in the future. Consequently, merchant websites offering to store or transmit card information need to be PCI Compliant. 

PCI compliance helps businesses secure payment information and customer’s financial data from phishing and theft in the payments industry. While payment processors help ensure this compliance, merchants can also keep a watch out for it. 

  • Tokenization

Tokenization is a data encryption method that stores and transmits sensitive information in the form of a string of random characters. For example, a debit card number is converted into a secure numerical data of the same length consisting exactly the same number of characters with the help of tokenization. 

For one-touch payments, customers can authenticate this token instead of re-entering the card details, making recurring payments effortless in the future.

It is crucial to remember that the tokenized text is random and cannot be tracked by fraudsters, even if they try to unscramble it. Encrypting data with tokens reduces the risk of data breach and bolsters security.   

  • 3D Security

Credit and debit card companies adopt a three-domain (3D) security feature to verify customer authentication in each transaction. A 3D secure pin is a numerical PIN set up by the customer and approved by the bank. With the 3D feature, payment can only proceed when the customer authorizes the transaction with their PIN.

In an interaction between the merchant’s domain, card issuing network, and the payment processor, 3D security foils unauthorized transactions, reduces chargeback and payment fraud. A payer authentication protocol, 3D secure flows boost customer loyalty.  

  • Multi-factor Authentication (MFA)

A multi-factor authentication (MFA) is a payment security method used to verify the customer’s identity. MFA is a critical step in online payments that authenticates the user before granting them access to an account and processing a payment. Payment integration platforms secure net banking, credit, and debit card information using MFA.

MFA and 2FA (two-factor authentication) steps are commonly used to block fraudulent payments with stolen customer data. It requires users to complete two or more verification steps to authenticate the customer’s access, as a multi-pronged approach to security. In addition to payment details and PIN, a one-time password (OTP) or biometric is also prompted. 

Conclusion

In light of growing awareness around online payment security, merchants and store owners need to create a secure digital environment for online transactions. With a myriad of aforementioned payment security measures, transactions on eCommerce platforms can be made safer, encouraging the customers to shop frequently. Fortunately, integrated payment systems offered by Zaakpay come equipped with these payment security features, with frequent updates and regular checks. 

By working with a secure payment gateway like the one offered by Zaakpay, merchants can demonstrate this safety to their customers and grow as a trusted brand.

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