The Indian economy has seen a sharp spike in businesses accepting digital payments post demonetization in 2016. The move has made payments almost an effortless activity. Online payments are convenient to both the merchants and the users.
From mobile net banking and mobile wallets to UPI and card transactions, online payments have had a remarkable journey and have made online shopping a hassle-free experience.
While the gradual shift towards online payment has received appreciation and applause, it has also highlighted the loopholes in the security system. The threat to online security has increased over the years. Hackers and fraudsters continue to manipulate the minutest of loopholes in the best online payment process.
Following are the simplest ways to ward off such threats.
- Fraud Management
Hackers are constantly on the lookout to dupe innocent people. This is why having a robust fraud management system is essential for businesses to adopt. A credible fraud management system can protect data and payment systems via customization, integration, fraud visibility, and Machine Learning (Artificial Intelligence).
Cybercrimes happen as hackers look for flaws that will allow them to steal important personal and financial data. Therefore, businesses must guarantee that the payment process is safe and protects the critical company, consumer, and valuable financial data.
Standards for privacy and data security established by regulatory organizations or particular nations are intended to safeguard companies and individuals. Merchants must ensure that they comply with all such regulations to keep their payment systems safe and secure.
These threats underline the importance of online payment security- especially in the digital world where everything is connected to our smartphones. Online payment security begins with 3 Big Ss towards security enablement:
- Secure Socket Layer (SSL)
- S-Http pretext
- Secure Electronic transaction (SET)
So, what security measures should be taken to ensure best online payment security? How can stakeholders be protected against online payment security breaches? Here are the top 10 ways online businesses can secure their online payment process for themselves and their customers.
- Confirming IP and billing address information
Checking transaction data can assist in identifying possible fraudulent transactions before the fraud happens. Address Verification Service (AVS) ensures that the buyer’s IP address corresponds to the credit card’s billing address to ensure that the client is the rightful cardholder.
- Data Encryption
TLS (Transport Layer Security) is a technology that authenticates and encrypts data as it travels across the Internet. Along with SSL (Secure Sockets Layer), a payment gateway ensures maximum payment security for both the merchant and the customer. In simpler words, a user’s card information will be stored as special characters that represent the card number. This way, no one has access to the actual card details to conduct fraudulent activities. SSL protocols to secure transactions ensure that sensitive information is encrypted and only available to the intended receiver.
- Payment Tokenization
Card tokenization transforms sensitive payment information into a string of randomly generated integers known as a “token.” As a token, the data may be transferred via the internet or payment networks to complete the transaction without being revealed.
- Strong Passwords
Cybercriminals attempt to access user accounts by using commonly used names, birthdates, and dictionary word combinations that may be used as passwords. Using a strong password to protect statements and payment information offers an extra layer of security. If the client forgets their strong password, a “forgot your password” mechanism must be in place to allow them to access their account. Therefore, enforce mandatory solid passwords for the users on your website or app.
- 3D Security
3D Secure method is an authentication mechanism that prevents unauthorized card usage and shields eCommerce retailers from chargebacks in the case of a fraudulent transaction. To authenticate transactions, merchants, card networks, and financial institutions seamlessly communicate information. Since all retailers must comply with rules requiring robust client authentication, 3D Secure is a convenient method.
Card Verification Value (CVV) is a number that may be used to confirm card-not-present transactions online. If the credit or debit card numbers have been stolen, retailers can authenticate the payment by requesting only information on the card. Keeping the customer’s CVV secure on your platform is crucial to ensuring the best online payment security.
Secure Customer Authentication (SCA) is used to prevent fraud and enhance the security of online payments. It requires two or more components (Two-factor Authentication- 2FA) from the user to authenticate the payment process. For example, users may be necessary first to enter their CVV number. Upon verification, they will be directed to the second step, where they might be asked to fill in a One Time Password (OTP) that is sent to their registered phone number. This two-step authentication process strengthens the online payment security and makes it more robust.
- Fraud Monitoring
A payment gateway that identifies and handles fraud is crucial for merchants. Built-in fraud detection makes sure that it apprehends the danger of a fraudulent transaction. To make things easier, businesses can use payment gateways to make fraud monitoring more intensive and less hassle-free.
- PCI-DSS compliance
Compliance with PCI DSS or Payment Card Industry Data Security Standard is needed for merchants who process, store, or transmit credit card data. The repercussions of a data breach for a non-compliant organization may be severe, including hefty fines and penalties as well as considerable reputational harm. Payment processors play an essential role in assisting merchants in managing and maintaining security compliances. Nevertheless, companies must be proactive in understanding their duties and compliance standards.
- Educating and Training employees
Provide the team with material information and relevant skills they need to notice and respond appropriately. When the team knows the safe payment procedure, they can detect fraudulent behavior and avert information security issues.
A payment processor is the first line of defense in terms of online payment security. The first step toward business security is selecting the right payment processing partner who prioritizes safety in online payments. Consultation with payment specialists and choosing a reliable online payment gateway will undoubtedly provide a competitive advantage in a payment security breach. It is critical to choose the proper online payment processing partner who understands company demands and can design an online payment acceptance solution with security measures.