Everything You Should Know About Payment Security

This “Everything You Should Know About Payment Security ” originally published March 24, 2022 by GETTRX.

Apple Pay, EMV chip cards, PayPal, and many more! Today we have more online payment options than we have space in our pocket.

Undeniably, the ability to make an online transaction with a few taps on the screen has made our lives easier.

We can buy products and services online which also opens opportunities for cross-border entrepreneurs.

However, with the various choices to make payments online comes the risk of payment security threats.

Online payment fraud cases are increasing. Consequently, payment security has become a serious topic.

In this article, we will tell you everything you need to know about online payment security.

What Is Payment Security?

Payment security involves rules, regulations, and all the security measures businesses take to protect their customers’ data and money. PCI Compliance and 3D Secure are the two most important protocols to follow when it comes to payment security. Let’s explore more about this.

What Keeps Online Payments Secure?

Customers trust a business with their money and information. Therefore, it is the responsibility of businesses to ensure secure payment and keep that trust. Below are the things that ensure payment security.

PCI Compliance

PCI DSS (Payment Card Identity Data Security Standard) is a standard that focuses on making payment security consistent. Any business that processes or stores users’ data should comply with the PCI DSS requirements . This shows how a business implements payment security and takes steps to prevent fraudulent cases.

Businesses can fall into four merchant levels. Merchant Level 1 comprises the strictest requirements, and Level 4 has the least. Level 4 merchants have to show their compliance via self-assessment. However, Level 1 merchants require to submit an external audit conducted by certified bodies. Regardless of the number of transactions a business processes, the right payment security can help you pass the PCI compliance.

Tokenization

Tokenization uses tokens or random strings of characters to replace the users’ information . Even if a token is stolen, it will be useless to others. These tokens also let businesses safeguard customer accounts or manage payment settings to avoid any potential payment vulnerabilities or data breaches.

AVS or Address Verification Service

AVS is a tool that is used to verify if the billing address of the cardholder matches the one associated with the credit card. This verification is a part of the merchant’s request for credit card transaction authorization. However, AVS is useful when paired with other fraud prevention methods. Misspellings, typos, or outdated address info leads to AVS mismatch, which causes headaches for legitimate users too.

3D Secure Authentication

It is an additional layer of security that requires users to complete another verification step during the payment process. It allows cardholders to confirm a transaction before it is carried out. In this process, customers are required to enter the card information at the checkout. If the merchant has enabled 3D authentication, the customers are asked to verify their identity. Then, the bank sends a secret code. Customers enter this one-time code to make payments. If the code is verified, the transaction is processed.

SSL Protocol

SSL or Secure Sockets Layer is a protocol that encrypts communications on a website and secures web pages that use customer information. SSL ensures that the data shared between the user and the website is secure and can’t be read by anyone else. Customers can see an SSL certificate on a website by searching their address bar for a lock icon. In fact, browsers nowadays alert users when a website is not using an SSL.

CVV or Card Verification Value

CVV is a three-digit code on the back of a credit card that is designed to verify that the user possesses the card. It can help prevent fraud (card not present) to some extent. But data breaches can expose the stolen CVV numbers, allowing fraudsters to write down the card information. Thus, CVV can help when used along with some other payment security methods.

What Are Payment Security Best Practices?

The number of online payment vulnerabilities is increasing; therefore, it is necessary to ensure that the system complies with the security standards. Fraudulent cases affect a business’s credibility with a user’s trust. So, consider implementing a fraud detection or fraud protection system and choose a payment gateway with advanced security features. Below are some of the best practices to minimize the risks-

Audit Your Digital Assets

Have a look at your digital assets, review the procedures used for processing users’ data. For example, merchants use a questionnaire to review their payment security. Larger organizations hire a professional assessor to audit their organization.

Fix The Issues

After the audit is complete and payment security issues are identified, the next tip is to fix the issues. It may include implementing encryptions, repairing the misconfigurations, etc.

Prepare Reports

Regular reporting is important to maintain PCI compliance. The level of reporting a merchant needs to offer depends on the level of the merchant.

Control Access

If you have any remote contractors (for example, IT support), make sure they have access to your system to protect customer data. You can consider a VPN network to provide them with access and ensure added security.

Secure The Printed Data

Fraudsters can access physical data, too, for example, invoices, receipts, or accounting records. Make sure to secure documents that contain critical financial information of the users. Furthermore, limit the access to printed data only to those who need the information to process transactions or respond to queries.

Have An Updated Operating System

The next best practice is to keep the operating system updated. Outdated technology is vulnerable to financial losses, frauds, and data breaches, which can erode the customers’ trust and affect your credibility.

Related Read: Payment Processing Security: 7 Things to Consider

Final thoughts

Secure payment transactions are important to prevent fraudulent payments. If you don’t take steps to ensure online payment security, the chargeback fees can end your profits. Even worse? Data breaches can even end a business. Thus, businesses should look for advanced payment solutions to protect customer data and ensure their safety against any breaches or frauds.