8 Best Practices For Secure Online Payment Processing
Digital wallets and payment applications have made it more convenient than ever to pay for purchases. However, these devices also provide cybercriminals with a gateway to your personal information.
So, to protect the customers while providing a smooth checkout experience, merchants must understand best security practices when accepting credit cards and other online payments.
1. Keep a check on Buyer’s IP:
If your business deals with expensive things and involves your direct involvement, a good thing to do is to check the buyer’s IP address.
This way, you can ensure that the IP address of the buyer matches the billing address of the credit card.
You can use any tool or use the AVS system, which automatically checks if the billing address and delivery address match.
2. Use 3D Technology:
With 3D Secure, you have greater accountability for fraudulent transactions prevented through chargeback replication. It is designed to reduce liability and protect eCommerce merchants from chargebacks in the event of a fraudulent transaction.
It will help your business meet new EU laws for strong customer authentication. Therefore, we recommend that merchants consider 3D Secure for maximum fraud protection and a seamless customer experience.
3. Be vigilant about Unusual Transactions:
An early sign of fraudulent activity is a large transaction amount. For instance, if your business processes orders that cost $150, flag transactions four or five times that amount. Another way to ensure the transaction is to call customers and verify their identity.
4. Use SSL and TLS Protocols:
You may have heard of “SSL” or “TLS” while using the Internet, but what is it? SSL and TLS are the most widely used security protocols and precursors to a broader protocol known as HTTPS. Businesses with an eCommerce site secure transactions with SSL (Secure Sockets Layer) or TLS (Transport Layer Security).
The technology validates the site’s identity and then encrypts the data so that only the intended recipient can read it. Encrypting data with SSL or TLS ensures that sensitive information is only accessible by the intended recipient.
5. Validate Through CVV:
Using Card Verification Value, you can validate the card-no-present transactions from any device. This can be an important measure if the credit card number gets stolen, so just asking for the information on the card can help validate the transactions.
6. PCI DSS Compliance:
To process payments on a website, you must comply with the PCI DSS standards. This will ensure that you comply with all the guidelines required to protect sensitive data in the payment processing industry.
PCI certification ensures the security of data at your business through guidelines set by PCI SSC. This includes things like:
- Use of anti-virus software
- Encryption of data transmissions
- Installation of firewalls
7. Tokenization:
Tokenization helps protect personally identifiable information (PII) by replacing sensitive credit card information with a non-sensitive token that can be safely stored in our databases. Most payment networks require cardholder data transmitted across the Internet to be protected, and Tokenization is a valuable tool for securing mobile payments, eCommerce transactions, and card on file programs. credit card tokenization boosts payment security immensely.
Tokenization is a sure way to protect your customers’ payment information from both outside digital hackers and potential internal problems. Randomly generated tokens are only readable by the payment processor — they can’t be monetized even if they’ve been exposed.
Thus, when a token is passing through the systems, anonymous thieves and hackers have fewer opportunities to commit a cybercrime.
8. Use SCA:
Strong customer authentication helps reduce fraud and increases online payments security. To accept payments and to meet the SCA standard, you need to build additional authentication in the checkout flow.
Use a payment gateway that offers Fraud Protection Policies: Some payment gateways offer a set of seller protection policies that can protect the business from fraudulent activities. In addition, these payment gateways can monitor your account from suspicious activities, help in resolving payment disputes and protect the financial information through encryption.
If your business is online, you’re exposed to online fraud. As a merchant, you need the right payment processing system with fraud prevention features to safeguard your business and your customers. Also, make sure that your payment gateway system comes with:
- Data Encryption
- 3D security
- PCI Compliance and other features mentioned above.
