Everything You Should Know About Payment Security

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The online purchase of goods, solutions, and services has revolutionized commerce, bringing countless opportunities to entrepreneurs around the world. Online fraud and theft have also been on the rise as commerce, or more specifically, eCommerce has become more prevalent.

The issue of online payment security is becoming increasingly serious. As a business owner, gaining the trust of your customers by protecting their information from the risks associated with card processing is critical. Security measures with complete encryption and various layers of fraud prevention tools should be a top priority for your online business. The process of managing all the security measures on your own can be difficult, so we recommend finding a reliable payment platform that combines both payment processing and effective fraud protection.

How Can You Provide Secure Online Payments?

Since as the merchant you are responsible for keeping the purchasing process under control and reducing the risk of fraud at every stage, you need to find ways to make payment processing less vulnerable.

SSL protocol

The first thing you need to do to ensure the security of your payment system is to implement an SSL protocol on your website. It helps you encrypt sensitive information that goes through the site, such as credit card details and sensitive data that customers enter during the checkout process.

In addition, the padlock icon visible in the URL bar next to the https label informs website visitors that your site is safe to use. It improves your online reputation, your brand awareness, and your credibility.

PCI compliance

PCI DSS, short for Payment Card Industry Data Security Standard, is a set of regulations created by major payment card brands such as Visa, MasterCard, American Express, Discover, and JCB. Companies participating in the system must adhere to 12 requirements for general data security.

Credit card companies require PCI compliance in order to make online transactions secure and prevent identity theft. As per PCI Compliance Security Standard Council, a merchant intending to process, store, or transmit credit card information must be PCI compliant.

Tokenization

Tokenization is a technology that helps improve payment security and provide a payment process free of vulnerabilities. The process helps to authenticate the customer during a purchase without compromising the security of the transaction. It replaces sensitive information, such as a 16-digit credit card number, with random strings of characters. It is less likely for data breaches to occur because if a token is stolen, it can’t be used by fraudsters.

3D Secure

The 3D Secure authentication process adds another level of security for card-not-present transactions. Named after the messaging protocol ‘Three Domain Secure’, which involves three domains, such as the bank, the technology that processes the transaction, and the issuing bank.

In order to authenticate cardholder information, the system usually requires tokens or biometrics, which can decrease the number of fraudulent attempts made. Additionally, every transaction that is successfully verified shifts liability from a merchant to the issuing bank.

Address Verification Service

Address Verification Service, or AVS, is another way to prevent fraudulent card transactions. This tool checks that the billing address provided by the cardholder matches the billing address associated with the card.

The address is verified by the merchant as part of the authorization request. The merchant then receives a response code from the card processor informing them whether or not the transaction should be accepted.

The address may be mismatched, for example, due to a misspelling or outdated information. Using AVS alone is not a guarantee against fraud, so it should be used as part of a comprehensive anti-fraud strategy.