10 Best Practices for Safe and Secure Online Payment Processing? Skip to content

10 Best Practices for Safe and Secure Online Payment Processing?

Entrepreneurs, merchants, and business owners sometimes underestimate the importance of data and information security when it comes to online payment processing. Businesses worldwide are now transitioning to online platforms for their products and services. With that being said, if you’re too one of those people, read our article on the 10 best practices for safe and secure online payment processing. 

The payment industry has transited from online and digital methods of money transactions, and it brings a wide variety of benefits. It also creates new avenues for measuring fraudulent activities, and there are several industry-oriented practices you can increase to protect your entire payment system better.

Online Payment Processing

To help reduce the risk or inconsistencies, you need to provide your customers with a safe and secure form of payment and to protect against fraudulent activities and vice versa. Fraudsters are looking out to access vulnerabilities they can use to access multiple systems and steal confidential data or information. Although, shoppers still need to be able to complete transactions via their preferred payment method and enjoy an efficient and frictionless experience to pay for their preferences.

Suppose you want to protect their customers and businesses while delivering a seamless checkout experience. In that case, merchants need to understand the concept of a safe and secure medium of processing payments online to accept credit card payments and alternative payment methods.

Three Pillars of Secure Online Payment Processing

There are three factors that merchants need to understand and manage to create a seamless checkout experience that is very simple, safe, secure, and protects all payment methods, including credit and debit cards and alternative payment methods. Let’s discuss the three factors to reduce payment risk:

  1. Fraud
  2. Security
  3. Compliance

Fraud

Fraud Management is a key consolidation for businesses requiring specific changes to the payment methods offered and additional buyer identification verification. High fraud rates can result in credit card companies that tend to revoke a merchant’s right to process multiple payments. Furthermore, It also negatively impacts the overall reputation of the business.

Security

As cybercriminals seek out vulnerabilities to allow them to steal valuable personal and financial information, merchants are liable to assure that the overall payment process is safe and secure and protects valuable business and customer data.

Compliance

The regulatory bodies or countries set privacy and data security standards to protect businesses and individuals. Merchants need to understand their obligations and ensure they continue to comply with online payment processing requirements everywhere they perform business.

Best Practices for Online Payment Processing

Following are some of the best practices for safe and secure online payment processing:

Link the IP and Billing Address Details

If you want to check details provided during the transaction process can help flag a potentially fraudulent transaction and protect the business before fraud occurs. Address Verification Service (AVS) compares the IP address of the buyer to the billing address of the credit card used to assure that the customer is the cardholder.

Encrypting Data

Secure Socket Layers and Transport Layer Security are protocols that authorize and encrypt data when moving forward on the Internet. If you need to secure transactions with SSL protocols, ensure that sensitive information is encrypted and only accessible by the intended recipient.

Using Payment Tokenization

Tokenization of Credit Card de-identifies sensitive payment information or details by converting it to a string of randomly generated numbers known as “token.” As a token, the information can be sent via the internet or payment networks to complete payment without being physically exposed.

Require Strong Passwords

Cybercriminals are trying to access user accounts that are frequently used as a combination of names, birthdays, and dictionary words. You can add a line of defense if you need to protect customer accounts with a strong password. Suppose the customer doesn’t remember their strong password. There doesn’t need to be a “forgot your password” process to enable them to access their account.

Add 3D Secure

3D Secure is a method of authentication designed to prevent the unauthenticated usage of cards and protects online merchants from chargebacks in the event of a fraudulent transaction. Card networks, merchants, and financial institutions share information to authorize transactions. Hence, all the merchants must comply with intuitive EU laws for strong customer authentication, and 3D security is an efficient and precise way to do this activity.

Request the CVV

Card Verification Value (CVV) can be used to validate card-not-present transactions online or on the phone. If the credit card numbers have been stolen, asking for information only available on the card can help merchants validate the payment.

Use Strong Customer Authentication (SCA)

SCA is used to decrease the rate of fraud and increase online payments with security metrics and asks for multiple elements from the use in the authentication process. If you know valuable credentials such as (a password or PIN) and something you have such as a badge or a smartphone, or something you are fingerprints or voice recognition.

Streamlined Monitoring

The best practice for safe and secure online payment processing is the concept of streamlined monitoring. Merchants must use a payment gateway that instantly detects and manages fraudulent activity. Within the built-in fraud management, businesses can set multiple rules as per their situation and risk tolerance that restricts or rejects transactions that are classified as suspicious or harmful.

PCI Compliance Management

Merchants can process, store, or transmit credit card data needed to be PCI compliant. The consequences of a data breach for a non-compliant business are significant. Payment processors are essential in managing compliance. Businesses must take a proactive role in understanding and executing their obligations and compliance needs. 

Train and Engage Employees

Employee engagement and training help employees with the knowledge, skills, and expertise that allows them to identify, recognize, and respond appropriately. Suppose your team understands the safe and secure payment process. In that case, they’ll be better prepared to examine and identify the fraudulent activities as it happens and can prevent information in security incidents. 

Final Verdict

In a nutshell, the importance of secure online payment processing is discussed in the above sections. Hence, by using these best practices to ensure a safe and secure online payment process, businesses can reduce the risk of fraudulent transactions to improve brand reputation and customer experience.

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