10 Best Practices For Secure Online Payment Processing

By Author: Sahil Verma
Total Articles: 160
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Fraudsters are on the lookout for flaws that they can exploit to gain access to systems and steal data. However, shoppers must be able to complete transactions using their preferred payment method while also having an efficient and frictionless payment experience through an online payment gateway.

Merchants must understand the best security practices online when accepting credit card payments and alternative payment methods in order to protect their customers and businesses while still providing a great checkout experience.

The Three Pillars of Secure Online Payment Processing

Merchants must understand and manage three factors in order to create a checkout experience that is simple, secure, and protects all payment methods – including credit and debit cards as well as alternative payment methods.

Three Factors to Reduce Payment Risk

Fraud

Fraud management is critical for businesses, and it may necessitate changes to the payment methods available as well as additional buyer identification verification. High levels of fraud can result in credit card ...
... companies revoking a merchant's right to process payments, as well as a negative impact on the business's reputation.

Security

As cybercriminals look for flaws that will allow them to steal valuable personal and financial data, merchants must ensure that the payment process is secure and protects valuable business and customer data.

Compliance

Standards for privacy and data security established by regulatory bodies or individual countries are intended to protect businesses and individuals. Merchants must understand their obligations and ensure that they continue to comply with regulations wherever they do business.

10 Best Practices

1. Match the IP and Billing Address Information

Checking transaction details can help identify potentially fraudulent transactions and protect the business before fraud occurs. Address Verification Service (AVS) compares the buyer's IP address to the billing address of the credit card to ensure that the customer is the cardholder.

2. Encrypt Data

TLS and SSL – (Transport Layer Security) TLS and SSL (Secure Sockets Layer) are protocols that authenticate and encrypt data as it travels across the Internet. Using SSL protocols to secure transactions ensures that sensitive information is encrypted and only accessible to the intended recipient.

3. Use Payment Tokenization

Credit card tokenization transforms sensitive payment information into a string of randomly generated numbers known as a "token." As a token, the data can be sent over the internet or payment networks or the best online payment gateway to complete the transaction without being exposed.

4. Require Strong Passwords1

Cybercriminals attempt to gain access to user accounts by using the commonly used name, birthday, and dictionary word combinations. Using a strong password to protect customer accounts can add an extra layer of security. In the event that the customer forgets their strong password, a "forgot your password" process must be in place to allow them to access their account.

5. Implement 3D Secure

3D Secure is an authentication method that prevents unauthorized card use and shields eCommerce merchants from chargebacks in the event of a fraudulent transaction. To authenticate transactions, merchants, card networks, and financial institutions share information. All merchants must comply with new EU laws requiring strong customer authentication, and 3D Secure is a convenient way to do so.

6. Request the CVV

Card Verification Value (CVV) is a number that can be used to validate card-not-present transactions over the phone or online. If the credit card numbers have been stolen, merchants can validate the payment by requesting information that is only available on the card.

7. Use Strong Customer Authentication (SCA)

SCA is used to reduce fraud and increase the security of online payments, and it requires two or more elements from the user during the authentication process. Something you know (such as a password or PIN), something you own (such as a badge or smartphone), or something you are (fingerprints or voice recognition).

8. Monitor Fraud Continuously

An online payment gateway India that detects and manages fraud is required for merchants. Built-in fraud detection identifies areas where there is a real risk of a fraudulent purchase. Businesses can set rules that limit or reject transactions that are deemed too high-risk, or that require manual approval before a transaction is completed, based on their situation and risk tolerance.

9. Manage PCI Compliance

PCI compliance is required for merchants who process, store, or transmit credit card data. The consequences of a data breach for a non-compliant business can be severe, including costly fines and penalties as well as significant reputational damage.

Payment processors play an important role in assisting merchants in managing and maintaining compliance; however, businesses must be proactive in understanding their obligations and compliance requirements.

10. Train Employees

Give people the knowledge and skills they need to recognize and respond appropriately. When the team understands the secure payment process, they are better prepared to detect fraudulent activity and prevent information security incidents.

Using these best practices for secure online payment processing is critical to success.