How to Secure Your Business Payments?

Technology advancements have benefited many aspects of life, including ensuring ease of business. But with it comes the danger of online hackers and scammers seeking to harm your business. And if you think these hackers only threaten large and medium businesses, you might be in for a shock.

Mobile wallets, including Amazon Pay and Apple Pay, NordFX Review are some of the most secure online payment methods. Typically, using this payment method requires identity verification via PIN or fingerprint. The mobile wallet is linked to an existing debit account, thus eliminating the chances of your business receiving fake credit alerts.

According to a survey by the Association of Certified Fraud Examiners (ACFE), fraudsters target close to one-third of small businesses. A survey done in August 2020 revealed an increase in cyber fraud during the covid-19 pandemic.

This can lead to financial loss and distrust in the brand. Therefore, businesses and companies must adopt payment solutions that are safe and secure. Fortunately, this article reviews the most secure online payment options and shares tips on how to secure your business payments. Join us as we begin, shall we? 

Payment Security: Definition

Payment security refers to the many technological layers, including the layers of authentication, biometrics, cybersecurity, and security protocols that prevent cyber frauds from stealing vital information from clients.

Fortunately, payment cards have a global standard; the body in charge of payment card security is the Payment Card Industry (PCI). There’s also the Payment Card Industry Security Standards Council (PCI SSC) which ensures standards are set and met. The PCI, launched in 2006 and cofounded by American Express, JCB International, Discover, Visa Inc and MasterCard to address issues of credit card fraud globally, sets data security standards that are globally consistent and available to customers anywhere in the world.

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Most Secure Online Payment Options

The most secure online payment options include the following:

  • Credit Cards

Credit cards secure payment options for small businesses since their use is regulated by the PCI, PCI compliance, or PCI SSC. Besides, purchases on credit cards are not directly taken from the customer’s account; rather, the money is first withdrawn from the credit card company; this ensures the customer’s confidential details are protected.

  • Debit Cards

Debit cards are also regulated by PCI compliance. Besides, when a debit card transaction is made from an unfamiliar IP address, it triggers identify verification measures which can help the customer identify if fraud is about to be perpetrated. Furthermore, customers are not held accountable for unauthorized transactions made on visa and Mastercard credit and debit cards.

  • Digital Wallets

Mobile wallets, including Amazon Pay and Apple Pay, are some of the most secure online payment methods. Typically, using this payment method requires identity verification via PIN or fingerprint. The mobile wallet is linked to an existing debit account, thus eliminating the chances of your business receiving fake credit alerts.

  • Wire Transfer

In cases where both the customer and the company’s bank are institutions of great reputation, wire transfer is a secure payment solution provider. This is because a reputable bank is presumed to have extensive security measures in place to mitigate against cyber hacks and other security concerns.

Tips to Ensure Secure Payment Systems

Having defined what payment security is and outlined some of the most secure online payment options, let’s look at the best practices that can reduce payment fraud.

  • Encrypt Received Data

One way to reduce payment fraud is to encrypt payment information. Unencrypted data on your server invites online hackers to collect your client’s payment data. Encrypting your process and payment system on receipt will protect your client’s data and make them inaccessible wherever they may be.

  • System Optimization and Upgrade

A simple yet necessary way to improve the security of your payment platform is by ensuring the technology used in your business’ payment system is up to date. New system updates fix issues with the system, enabling the system to operate with the most updated level of security. 

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Also, avoid storing customer data; this will prevent compromising your client’s information should a breach occur.

  • Use AVS Protections

Online payment fraud occurs because businesses cannot access the client whose payment information is being taken. One way to prevent fraudsters from stealing your client’s card data is by using address verification system (AVS) information. The system checks to verify that the billing address and the address on the payment card match. Although this is not failproof, it can help reduce cyber fraud.

  • Ensure PCI Compliance

PCI standards stipulate protocols to enhance online payment security to minimize the risk of data breaches and card fraud, thus protecting both companies and clients. Business owners need to understand and comply with the requirements. 

Noncompliance often leads to heavy fines and, in some cases, revocation of the right to receive credit card payments. Also, businesses ought to carry out periodic PCI scans to ensure the security of payment networks.

  • Utilise 3D Secure

3D Secure (3DS) is a new layer of cyber security offered by many cardholder companies. The method requires customers to enter a pin or unique information known only to the customer. This eliminates impersonation or fraud. 

However, 3D secure is only used for transactions considered ‘high risk’ by most credit card companies but is likely to become more popular as more card companies and businesses adopt it.

  • Use of Tokens

A token is another high level of security that companies can use when building a secure payment platform. The payment method focuses on customers’ data where during a transaction, the user receives a random string of numbers that’s only valid for a limited time. This way, even if a hacker accesses the data, it’s not useful to them. 

  • Activate SSL Protocol

A secure Socket Layer (SSL) is one good way to secure payment systems. The public key authenticates and encrypts websites for users. SSL-certified sites have “HTTPS://” on the site’s name and a padlock symbol on the address bar. While small businesses may deem the protocol unnecessary, it can protect customers from hackers.

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Conclusion

Non-secure payment options can have devastating effects on a business and its customers, ranging from financial loss and reputational damage to an increase in indirect cost and higher insurance premiums, amongst others. 

Thus, payment security is important for eCommerce businesses. Fortunately, the tips shared above can help you defend against online security breaches, thus leading to profitability and increasing consumer trust in your brand.