Tips to ensure online payments security

Security is a two-way street, just like payments. That is, both merchants and customers must address this issue. But don't worry! There are numerous technologies available to assist you in securing payments and keeping transactions secure. Of course, banks, PSPs, and online payment gateway service providers can help to make the experience more secure for all parties involved.

Today, we'll look at some of the most common methods for safeguarding online payments.

Which online payments are the most secure?

Unfortunately, no payment method is completely secure, and merchants can face chargebacks regardless of how their customers pay for goods. The issue of online payment fraud is a global one because it is much easier to defraud someone when you don't see them face to face.

That is why banks, financial institutions, and other businesses develop new solutions to help prevent fraud and high chargeback volumes, which can put any business at risk.

Credit and debit cards are currently the most secure payment methods. The majority of people prefer them to other payment methods, prompting more active regulation and anti-fraud tools tailored to cardholders. Card users, for example, are protected by the PCI DSS, which is discussed further down in the article.

Nonetheless, any electronic payment method can be secure for both customers and businesses if the latter chooses a reputable company to open a merchant account with.

We provide 3D secure to merchants, which is a critical service that allows for double authentication of a customer when they make a purchase. This significantly reduces fraudulent transactions, and merchants can analyse how their customers interact with the 3D Secure service.

Tips to ensure payments security

Protect yourself with two-factor authentication

This is a type of authentication in which a person must provide additional login credentials, rather than just an email and password, to access their account.

This additional authentication type varies: in some cases, you must enter an OTP; in others, you must answer an automated phone call or confirm your identity via your phone/biometric data. In either case, you must confirm that you are the one who enters the account. It greatly reduces the possibility of someone else logging into your account and stealing your personal information, including financial information.

The 2FA can be used in a variety of situations. People can, for example, enable two-factor authentication on their social media profiles to protect their data from breaches. It may appear overly complicated, but hackers can access a large amount of information that people share online.

For merchants, enabling 2FA is a must if you offer personal profiles to customers on your website. Otherwise, a fraudster can log into your client's profile, order a bunch of things, and you'll have to deal with reputation and financial losses.

Also, when selecting a bank or payment service provider – whether for personal or business purposes – ensure that this financial institution supports 2FA. This is a good indicator of how safe their services are.

Use third parties for storing customers’ data

This advice is for businesses. In this case, we're referring to the financial information and payment credentials that customers enter when making a purchase on your website.

It is not a good idea to keep this information. If the data is stolen, you could find yourself in a very unpleasant situation. Lawsuits and reputational damage may result.

To avoid the risks, look for a third-party payment solution that also handles data storage. Banks and PSPs typically have more sophisticated security systems that scammers find much more difficult to breach.

Get cyber liability insurance

In some cases, a merchant cannot completely outsource the storage of their customers' data to third-party companies. If you find yourself in a similar situation, you should consider purchasing cyber liability insurance.

This type of insurance, as the name implies, assumes the company's liability for data breaches. If the unthinkable happens and the customers' data is stolen, the insurance can cushion the blow.

Use a personal verification system

Consider the following scenario: a customer wishes to purchase a high-priced item from your online store, or a large quantity of products. It could be risky: you want to ensure that there are no scammers on the other side of the screen. And you can, with the help of a personal verification system. You can use it to request that a customer verify their identity by displaying their ID or other relevant documents.

Get an SSL certificate for your website

The short and simple explanation is that the Secure Sockets Layer (SSL) protocol encrypts a person's data as soon as they visit a website that uses the protocol. As a result, information sent between a customer (such as credit card information) and a company's website will be encrypted to protect it from malicious parties.

If you are a customer, you can easily determine whether a website uses the SSL protocol by looking at the address bar: if it has a padlock or 'https' at the beginning, you are good to go!

Make sure your hosting provider has safeguards in place

The hosting provider should be as concerned about online payment security as you are. For starters, it requires tools to monitor potential malware threads, encryption features, and other security instruments to prevent breaches.

Comply with PCI DSS

It is one of the most important things that businesses must do to protect their customers' data.

The Payment Card Industry Data Security Standard applies to any organisation that transmits, processes, or stores credit card data.

If merchants want to keep their customers' information safe from breaches, they must comply with certain PCI DSS requirements. The complete list of requirements can be found here.

It is critical that the financial institution you work with follows all PCI DSS rules and is certified on an annual basis.

Explain the importance of VPNs and security to your customers

As previously stated, securing payments is a two-way street. Merchants must implement multiple tools for this purpose, but customers must also be aware of how not to overshare their personal information. Using 2FA when logging into various websites is only one aspect of it. People must not disclose their payment information to anyone – no legitimate bank will call you and request your credit card number. Enabling VPN while browsing is another good security precaution.

Merchants can educate their customers on all of this useful information by publishing blogs or newsletters on the topics on their websites.

Find a secure e-commerce platform

If you are new to the online shopping business, you do not need to build a website from the ground up. You could instead use the services of a global e-commerce platform or marketplace. This means that a merchant will not have to deal with as many security updates and issues as platform owners will.

Of course, there are drawbacks to this decision: you will have to pay fees for all of the services provided by your platform. Even so, there are numerous marketplace options available nowadays. In addition, for an extra layer of security, a company can find a reputable PSP or the best online payment gateway service provider.