It shouldn’t be taken as a surprise that debit cards, credit cards or other forms of e-payments are being preferred more and more by people since the emergence of e-commerce across the globe, but the increased surge in the number of e-payments made has also led to the risk of data breaches or cyber theft taking place occasionally which is why payment security strengthening has become an important matter of discussion among cyber experts across the globe. A report says that about 74% of companies were subject to online fraud or payment fraud attacks in the year 2021 is another reason why processing payments online has become much riskier. Payment security is of utmost need in the present technology-driven world. let’s learn more about the secure payment system.
Did you know? A study has shown that the payments security market is expected to reach about 54 billion dollars by the end of the year 2028.
What is secure payment or payment security?
Payments security refers to the various steps that businesses are willing to take to ensure that the data of their customers are completely protected and to ensure there is avoidance of any kind of unauthorized transactions taking place or any kind of data breaches taking place. There are many important aspects to ensuring payment security by following certain protocols which involve the compliance of PCI and 3d secure. PCI (Payment card industry compliance) refers to the operating system provided by businesses to protect the data of credit card holders. Whereas 3D security in credit cards verifies whether the transactions are real.
Various security measures with multiple layers of protection involving encryption and other kinds of fraud prevention tools provided should be considered the top priority for any kind of online business for secure online transactions hence payment security serves with providing multiple layers of protection depending on the type of business you operate. Multiple layers of security and compliance play a major role in how the secure payment system is designed and implemented.
To summarize everything, payment security refers to the measures a company or an organisation is willing to take to protect the personal data of their customers and prevent any kind of fraudulent transactions from taking place. These are considered dynamic and multifaceted strategies happening in real-time to protect any kind of sensitive data that can be stolen or breached.
Different ways to ensure secure online payments
As a merchant, you are responsible to ensure that the purchasing process is kept under control and there is least or absolute minimum risk of fraud at every stage of payment online, which is why there are different ways provided to ensure that online payments are adequately secured, which are as follows:
SSL (Secure Socket Layer) protocol or secure socket protocol is the first thing you would want to do to ensure the security of your online payment system. SSL protocol refers to an internet protocol that encrypts all kinds of communications made on a website, especially the importance of securing the web pages that involve the processing of customer payment information. Customers can see if the website is using SSL by checking if there is some kind of LOCK icon available on the top left-hand corner of your device or by verifying that the side address starts with “ HTTPS”.
This protocol helps in encrypting any kind of sensitive data that goes through the website such as credit or debit card details that the customer enters during the checkout process of any online transaction. Acquiring an SSL certificate is considered easy as well as affordable and the administrator can then install the SSL certificate to secure any kind of web application and the checkout page to ensure a smooth and hassle-free online payment process.
Compliance with PCI
PCI, short for payment card industry data security standard, is referred as a set of regulations drafted by leading card payment brands like VISA, master card, American Express and many more. Companies who participate in this system must adhere to the 12 requirements framed for general data security. Credit card companies are required to comply with the PCI regulations in order to ensure smoother and more secure online transactions taking place to prevent any kind of identity theft. According to the PCI compliance security standard council, a merchant who intends to store, and transmit any kind of card information needs to be PCI compliant.
Tokenization is referred to as one of the most important steps when it comes to protecting the sensitive payment data of customers. Tokenization refers to the process of replacing the personal account number (PAN) of the cardholder with any random alphanumeric value referred to as a “token”. The value of the token does not have any connection with the PAN which is why it cannot be reverse-engineered. Only the payment gateway or the token vault can find out about the relationship between the PAN and the token.
Tokens use a public as well as a private key to work. The public key allows the creation of tokens whereas the private key allows the merchant to issue single and continuous payments. This kind of security ensures that the data of the cardholder is safely secured.
Address Verification Service (AVS)
AVS helps in the payment security process by comparing the addresses given by the cardholder during the checkout process with the given known address of the cardholder. the process of Verification of address is done with the help of a response code, which is sent by the credit card company. It is considered useful when paired with other kinds of fraud prevention methods.
Card Verification Value
It refers to some kind of three or four-digit code given on the back of a debit or credit card to verify if the person who is purchasing the goods has physical possession of the card or not. CVV can help in the prevention of fraud involving card-not-present (CNP ) fraud, but it’s not a foolproof plan to prevent any kind of data breach. Fraudsters can steal the CVV number to commit online fraud which is why CVV is best utilised when it is used with additional payment security methods in the process of online payment.
3D Secure Authentication
The process of 3D secure authentication adds another layer of security for transactions that involve cards that are not present. Named after three-domain secure, which contains three domains as a bank, the technology is involved in processing the transaction and the issuing bank domain. Under this process, the system normally requires the help of tokens or biometrics which could decrease the number of fraudulent attempts made. On top of that, every transaction that is successfully verified helps in shifting the liability from the merchant to the issuing bank.
Importance of a secure payment system for a business
Implementing the right kind of payment security is important for any business. A payment system breach can cause widespread damage to a business since once the company’s security is completely breached, not only the sensitive data of the customers will be breached but the years of trust of the customers and the reputation of the company in the market will come crumbling down.
Customers do not want to spend a long time dealing with any kind of fraudulent charges or worse: the case of identity theft. Customers trust the company by providing them with their personal as well as monetary information with the fervent hope that the organisation will provide them with a secure and smooth buying experience. Also, you as a Business owner will create the risk of damaging all kinds of business relationships with the external stakeholders of the company, the business partners as well as the various service providers of the organisation.
This was all about what is secure payment or payment security, different ways in which businesses can ensure secure online payments and the importance of a secure payment system for a business. We hope that with the help of the information shared in this blog, readers might have got an insight into the term” Payments security” and all its various components.
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