Best practices for securing your E-commerce payments
It is certainly not a joke to be a victim of ecommerce fraud. Whether you’re an end consumer or an online merchant, you must be wary of potential security risks that go with E-commerce transactions. After all, up to 88% of proficient hackers are able to compromise the most secured systems in just 12 hours. So, how can you ensure that your e-commerce payments are secure? Here are some of the best practices you can follow to protect your business and your customers.
Reasons To Ensure Secure E-Commerce Payments
- Growing online purchases: According to statistics, up to 6% of worldwide internet users buy things online at least once a week. The volume of transactions, therefore, makes it essential to secure e-commerce payments.
- Prevent data breaches: Hackers can try to access and steal sensitive customer information from vulnerable systems, leading to identity theft or financial crimes.
- Fraud prevention: Secure payment systems help prevent money laundering and other fraudulent activities.
- Minimize chargebacks: Safe transactions reduce disputes and chargebacks, protecting your business from losses.
- Brand reputation: Protecting your customers’ data can prevent costly breaches that damage your brand image.
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Meeting PCI compliance requirements
It is a payment industry requirement for your business to meet security standards during online payments in order to protect customer data from fraud. You may face hefty fines and legal repercussions if you do not meet these requirements as an online merchant.
For example, business processes that involve the storage or transmission of card data need to follow the Payment Card Industry Data Security Standards (PCI DSS). This is a framework that is set up by credit card companies such as MasterCard, Visa, and American Express to protect cardholder information.
Best practices for securing E-commerce payments
Implement these best practices to better secure your e-commerce transactions:
Maintain the key components of a secure payment system
A secure payment system (SPS) should have a payment infrastructure that keeps unauthorized users away and protects the payment process. Key components that are needed for this function include the following:
- Encryption
Encryption scrambles sensitive data into unreadable code before it is sent over payment networks. This ensures that even if hackers intercept the data, it’s nearly impossible to decipher. - Tokenization
Tokenization replaces sensitive data with a unique token. This token holds no intrinsic meaning and cannot be reverse-engineered, making it a powerful tool for preventing data theft. Hackers are also unable to unscramble them even if they intercept them.
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Multi-factor Authentication
Multi-factor authentication (MFA) adds an extra layer of security by requiring users to verify their identity with more than one credential, such as a password and a fingerprint or a one-time code sent to their phone.
- Fraud Prevention Systems
Fraud prevention systems can detect suspicious activities through the application of machine learning and engineering procedures. They then take the next step to block such transactions. This blocking process can include the following steps:
- The systems perform real-time analysis of all payment data.
- They compare the data with data set records to discover anomalies.
- If necessary, they then block such transactions.
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Making use of Card Verification Value (CVV)
The Card Verification Value (CVV) is the three-digit code on the back of credit cards, such as Visa and Mastercard. By requiring CVV during online purchases, you add an extra layer of protection that verifies the buyer’s identity and ensures the card is present during the transaction.
Maintaining a Secure Website Platform
Your content management system (CMS) and your website need to be fully secure if you are using them for E-commerce payments. You can better secure your website through the following ways:
- Regular software updates: Regularly update software, extensions, and plugins. This will reduce the likelihood of security breaches. Implement a requirement for customers to use strong passwords. Complex and unique passwords help to restrict access to only legitimate customers.
- Use strong passwords: Require customers to create complex and unique passwords for their accounts.
- Implement a firewall: Set up a firewall for better protection from unauthorized access and suspicious traffic.
- Add TLS layers: Running a Transport Layer Security (TLS) layer between your website and visitors can help protect sensitive information. The layer encrypts personal and financial data.
- Use a CDN: Content Delivery Network (CDN) can give added protection from Distributed Denial of Service (DDoS) attacks as it distributes traffic across multiple servers.
- While at it, remember to keep your operating systems updated with the latest security patches. This will better protect them from hackers.
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Improve Security by Integrating SSL Certificates
Secure Socket Layer (SSL) certificates encrypt the link between your website and the customer’s browser, keeping all transmitted data secure. SSL is a must-have for any e-commerce site and is often symbolized by the padlock icon next to your website’s URL.
Provide employee training
Cybersecurity isn’t just about technology; it’s about people. Do not forget the human element in the e-commerce transaction process. Your employees should be well-trained to implement best practices for ecommerce payments. They should be able to identify potential threats, such as phishing attacks, and follow best practices for managing sensitive customer information. Likewise, they should know how to manage sensitive customer information and use security technologies such as firewalls, encryption, and antivirus software. Well-trained staff are your first line of defense.
Use a Secure Online Payment Gateway/Provider
Choosing the right payment provider is critical. Look for a reputable payment gateway that offers features like fraud detection, tokenization, and multi-layered encryption. A good payment provider will offer an all-in-one solution to handle transactions securely.
Note that choosing comprehensive solutions with advanced fraud detection, tokenization, and other tools and features can help protect customer data better.
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Securing E-commerce payments for future growth
From the discussion above, you can see that it is indeed possible to ensure that e-commerce payments are more secure in today’s digital landscape. You need to ensure that your security measures are robust enough to protect sensitive customer information. You can also implement best practices such as encryption, tokenization, multi-factor authentication, CVV, and secure payment gateways to reduce risks significantly. By doing these, you will not only be complying with industry standards but also be protecting the reputation and longevity of your e-commerce business.
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