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How Safe Are Online Payment Systems?

by Sara Hanson
How Safe Are Online Payment Systems?

One of the biggest issues that people face when shopping on the internet is security concerns for their credit card details. According to an investigation conducted of Kaspersky Labs and B2B International about half of the Internet customers still believe they’re at risk when they make online transactions 42 percent of respondents say they’d make more purchases in the event that they knew they weren’t hacker-proofed. A whopping 37 percent of them have abandoned their shopping carts on the internet because they were not confident that they were secure with the process of payment.

What are Online Payment Systems?

The first thing to note is that online payment systems are only one aspect of the larger beast called electronic data interchange (EDI) and they are the ones that draw the most interest (legitimate as well as illicit) because they manage the data associated with the transfer of funds. In the past, EDI was exclusively used for business-to-business (B2B) transfer of funds However, with the growing popularity of shopping online and the rise of online shopping, millions of business-to-customer (B2C) EDI transactions happen every single day. In reality, 90% (90 percent) of B2C operations in North America happen online, the most popular method of which is through a credit card.

Retailers in offline and online wouldn’t be able to survive today without debit and credit cards as payment alternatives. Card issuers, particularly Visa and MasterCard are requiring retailers to comply with the Payment Card Industry (PCI) Data Security Standards such as secured terminals for purchases in stores, and online merchants are required to adhere to stringent security protocols and certificate protocols. In the majority of cases, they must follow a two-factor authentication procedure which requires merchants to input both the code and password to avoid unauthorized access by third parties.

Other payment choices comprise Smartcards like Netspend skylight debit card (which are similar to debit cards but specifically for purchase online) along with payment processing gateways like PayPal as well as Google Wallet, which account holders can use to store money transferred from regular bank accounts to purchase online items.

To make mobile payments, a few online shopping software programs let you pay as easily as sending a text message. The one thing that they all share is that they need some kind of security symbol. Most likely, you’ll recognize some of them: VeriSign, PayPal Verified, Verified by Visa, SSL, and MasterCard SecureCode. Customers feel secure knowing that they’re in the presence of. But do they feel secure enough?

What is it that makes internet payment secure?

Although it’s nearly impossible to stop the possibility of fraud completely, you can take a variety of methods to protect your information and keep the theft of your data.

Find out the most important things to consider to ensure that the payment processing on your site is safe.

Find out what you should consider when selecting a payment processor for your online business, as regards security.

1. SSL is a secure method of connecting

All transactions must be secured using your SSL protocol. Using SSL aids in the encryption of the information and ensures that your card information, as well as other sensitive information, is secured.
Not only does it enhance the security of payments It can also make customers more likely to purchase.

What can you do to ensure that the website is secure through SSL? SSL protocol?

The first is that you will notice an icon for a padlock in the address bar. The second is that the address starts with HTTPS.

Check that the provider you choose to use supports an SSL protocol and also monitors its validity.

2. PCI certificate

When you make payments through the website you operate, PCI is an absolute requirement. PCI is a must. Payment Card Industry Data Security Standards (PCI DSS) give guidelines to merchants on what they must to do to protect sensitive information in payment processing.

While it may sound complex but the retailers don’t have to manage the entire compliance process by themselves.

The most efficient method is to choose the most suitable payment provider that meets industry security standards and ensures the data encryption that is as required by PCI.

Security is our primary concern, SecurionPay has been certified to PCI Service Level 1 Provider The most advanced PCI level that meets the strictest standards.

3. Tokenization

Tokenization replaces sensitive information with a random number of characters which reduces the chance of data breaches. One of the best security strategies is to use the token to represent a genuine payment card’s number.

In the process of approving the transaction, the information is transmitted to a central server to be stored in a secure. In parallel, the merchant’s system is given a unique number, which is known as the token.

The token can then be utilized as a replacement for the data on the card, e.g., with one-click transactions for future transactions by the customer.

Selecting a payment processor that supports tokenization can greatly reduce the possibility of fraud on payment. This means you don’t need to save the customers’ credit or debit card details on your servers.

Furthermore, the data of cardholders do not even reach your servers. Additionally, they’re encrypted before being stored on databases servers.

Secure payment processors have the infrastructure to store and decrypt card numbers in an independent hosting environment that is not linked to their main services.

4. 3D Secure authentication

3D Secure (Three Domain Secure) is a protocol for messaging that connects three domains: the bank technology, the technology that processes the transaction, and the bank that issued the transaction.

It’s another layer of security that helps prevent fraud for transactions that are not card-not-present.

The key point is that the risk of each verified transaction is transferred from the merchant to the bank that issued the transaction.

To make the long story shorter – when online shoppers are looking to purchase something, they must verify the transaction.

You can confirm this with the use of a password or one-time PIN by their bank via SMS, which will provide additional security.

5. Anti-fraud instruments

All transactions are scrutinized (either manually or automatically) and monitored by fraudulent tools for preventing fraud which means that it is easier to detect and identify any suspected fraudulent activity.

Merchants must be aware that only a single tool isn’t enough to protect their business. They require a multi-level approach that offers more security.

As security for payments is a delicate subject be sure to work with a reliable payment processor to back you up if required.

Good customer service, which is available at any time, is crucial for the success of your business.

What else do you need to Be able to Know

For sellers, it boils down to streamlining the shopping procedure to receive your customer’s money as quickly as is possible. This requires the ability to pay online. Most of the time the online payment system needs a shopping cart application capable of handling orders, collecting customer data as well as calculating shipping and taxes, and then summarizing the transaction to the customer prior to making the final payment. Shopping cart software may be a third-party program and/or part of the corporate packages provided by the provider of online payment services.

In the past, there was a point that creating an internet-based payment method for a small-sized business was difficult enough to be worthwhile However, this is no longer the case. Numerous e-commerce sites, such as SaleHoo, offer the complete service, starting with the creation of a web store, through configuring an online shopping cart to opening an account with a merchant.

Security Badges and Helping Your Users Feel Secure

It’s important to ensure that your customers feel safe while browsing your website by prominently displaying your security certifications at top of your website. More than 60% of participants in a survey conducted with Actual Insights have pointed to the absence of a trust badge as the main reason they don’t want to shop in carts.

Conclusions?

Therefore, is it secure to pay on the internet?

While there are certainly ongoing problems with security on the internet, with cybercriminals constantly seeking backdoors to secure stored data, however, the majority of transactions online are untouched. However, there are risks, and it is important to be aware to keep yourself updated with the latest information and keep reading guides on payment platforms and personal finance, however, displaying confidence badges, and working together with reliable third-party payment services can assist your customers in overcoming their anxieties.

What are some strategies you use to ease security worries? Please share your ideas via the comment section.

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