Secure payment systems: Everything businesses need to know in 2023
If you’re here, you probably know that secure payment systems are a must.
But, knowing what to look for when choosing one can be a bit harder. The truth is, there are several things you need to consider. In this guide, we’ll cover all you need to know about secure payment systems. You’ll learn:
- How do you know if a payment system is secure?
- Factors affecting payment risk.
- Fraud
- Security
- Compliance
- How do you know if your payments are secure?
- Implementing 3D Secure
- Monitoring online fraud
- Ensuring PCI compliance
- Conclusion
So, let’s get started.
How do you know if a payment system is secure?
Choosing a secure payment system will help you ensure your customers’ personal and financial information is protected. The need to protect this information won’t come as a surprise and there are various protocols that can help.
Speaking about the importance of online payments, Lucy Peng said: “Online payment will continue to play an ever-growing and significant role in the development of e-commerce as well as the stimulation of consumer demand.”
A recent survey shows that 83% of customers are concerned about security when paying online. Secure payment systems is what’s referred to when online security is used to protect users during the payment process. A payment system that’s secure will ensure personal and financial information is protected from unauthorised access and fraud.
Let’s look at some factors that can protect your customers.
Factors that impact your payment risk.
Fraud, security, and compliance are 3 factors you should be well aware of. They’ll not only help you protect your payments but they’ll also make your customers’ checkout experience simple, secure, and intuitive.
Fraud
Global losses from fraud in online payment are expected to reach $48 billion in 2023. If your online store ever goes through the misfortune of experiencing high fraud rates, your merchant account could be terminated. Work with a payment system that offers a strong fraud prevention solution, to detect malicious behaviour and prevent financial and reputational harm.
Security
Adding security measures to your checkout process is another great way to reduce risk in online transactions. Payment security is highly important for customers and a must-have for businesses. If you’re processing online payments you’ll likely already have customer authentication protocols in place. A part of the SCA requirement for PSD2, these protocols add an additional layer of security that protects both the consumer and merchant from falling victim to fraud.
Security certificates a payment solution should have are:
PCI DSS
This is the Payment Card Industry Data Security Standard. An information security standard that organisations handling branded credit cards from major card schemes must adhere to. The PCI Standard is mandated by the card brands and administered by the Payment Card Industry Security Standards Council. The standard was created to increase controls around cardholder data to reduce credit card fraud.
ISO27001
This is a security framework which governs how a payment system manages its security, and is used to protect information and assets.
Cyber Essentials Plus
Cyber Essentials Plus is the highest level of certification offered under the Cyber Essentials Scheme. It is a government-backed and industry-supported scheme that helps businesses protect themselves against the growing threat of cyber attacks and provides a clear statement of the basic controls organisations should have in place to protect themselves.
Compliance
Data privacy and security standards developed by regulatory authorities are designed to keep both businesses and customers secure. If you have any queries about compliance, your payment platform should be able to help answer any queries.
Want to learn about finding the right payment platform? Choosing a payment platform isn’t easy. But we’ve covered everything you need to know about online payment platforms and how to make an informed decision in our most recent blog. Read more here.
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How do you know if your online payments are secure?
Having a secure payment gateway is the best way to protect your payment processes. A secure payment system complies with the Payment Card Industry (PCI) security standards. It also ensures that all the information processed during a transaction is encrypted.
Data encryption basically scrambles information and ensures that only those with a decryption key are able to read it. Simply put, it makes business and consumer information useless for cybercriminals and reduces the risk of data breaches and fraud. Some of the many ways to protect yours and your customers’ data is:
Implementing 3D Secure
As mentioned above, putting customer authentication protocols in place will minimise fraudulent activity. 3D Secure can present itself to the consumer in a few different ways, but essentially it’s an extra layer of security you’ve probably noticed when paying online - for example, when you’re directed to your mobile banking app to approve a payment.
3D Secure adds an extra layer of security to help ensure that the person making the payment is the cardholder.
Monitoring online fraud
Battling fraud isn’t a one-off project. Fraudsters are continually thinking of new and ingenious ways to hack systems and steal data. Your payment system should be consistently preventing and detecting fraudulent behaviour.
It should also be regularly updated. Ensuring that it's up-to-date with the latest technology and tools to keep your customers’ and your business’ data secure.
Ensuring PCI compliance
Lastly, one of the most important things you must do is check whether the provider complies with PCI requirements. They cover various things like network security that a payment platform must do.
Your payment platform should, at a minimum, comply with these requirements. If you can’t determine that the platform is compliant, it’s better to contact them and ask for details. Some PCI requirements include:
- Network testing to stop intrusions
- Access control to sensitive data
- Protection against malicious software
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Finding the right payment provider
The payment provider you choose has a serious impact on your payment security. So, you need to be wise when making the decision. Payment platforms today provide businesses with tons of features, and choosing the right platform can be a bit of a challenge. Businesses often get carried away by fancy features and end up making the wrong decision.
A customisable interface, ease of integration, support for multiple currencies, and different modes of payment are all essential. However, understanding the security protocols the payment provider has in place is more important. Some things you should consider include:
- Processes used to keep transactions secure
- Financial institutions the payment provider works with
- Who has access to payment and transaction information
To sum up
Payment security is a major concern for online customers. Businesses need to do all that they can to ensure that their payment gateways are secure. Security concerns regarding payment platforms can generally be accounted for by taking fraud preventative measures and complying with security regulations.
Take controls of your payments
Judopay offers you an all-in-one payment solution that can be easily customised and integrated into your online business setup, allowing you to improve customer experience and have a streamlined checkout process.
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