Data security and protection are important not just to keep customer information safe but also to keep business owners safe. As per the survey of a database company during India’s fiscal year 2022, debit card payments were worth about 7.3 trillion Indian rupees and credit card payments were worth about 9.7 billion rupees. India’s heavy use of card payments can be traced back to government plans to make the country a cashless economy.
Since more card transactions are being done online,to prevent payment fraud and ensuring security are top of mind. In place, secure payment system procedures and policies for your business will ensure that all current and future transactions are honest.
Businesses are now using online and digital platforms to keep their profits stable. Data security breaches and online payment scams are the main risks of online businesses. In May 2022, the government got more than 61 thousand reports of digital payment fraud.
So, it’s clear that security is needed, and business owners must protect their customers better and keep their websites safe if they want to keep people’s trust. Safe payment systems can help here.
What is a Secure Payment System?
A secure payment system is a service that lets people make online payments and safely get information about them. A secure payment system is a way to process payments that keeps a user’s personal and financial information safe from fraud and unauthorised access. As huge amounts of money are moved through these systems daily, they must be reliable.
Different services are used by businesses to make sure that their customers’ payments are safe.
Digital payments are changing the way we do business all over the world all the time. eCommerce technology is making it easier for businesses to accept and receive payments in various ways. You need a safe payment system as a payment processor to do this.
People like to pay with credit cards, debit cards, online, and mobile apps. Therefore, all businesses need secure payment systems. Read on to learn more about these systems and why your business needs them.
What is the most secure method of payment?
Amongst other secure payment systems, credit cards are very safe to use because banks protect the people who have accounts with them. But when it comes to specific types of online payments, Payment apps are one of the safest ways to pay today. The platform lets you check out millions of websites safely and reliably. Your card information and account details are never saved.
How to secure online payments for your customers?
As you must maintain the purchasing process under control and decrease the danger of fraud at each step of the checkout process, you should offer solutions that reduce payment processing’s weak areas.
Read on to discover the most critical factors that will ensure the security of your payments.
First and foremost, you must have an SSL protocol installed on your website for payment security. It enables you to encrypt information that travels through your website, like credit card information and other sensitive data shared by clients during the checkout process.
In addition, the padlock icon in the URL bar next to your website’s address that begins with https indicates to customers that your website is secure and safe to use. Your online reputation, brand awareness, and internet trustworthiness will increase.
SSL certificates have several advantages for your organisation, so implement one.
If you accept payments on your website or want to collaborate with a payment provider, you have likely heard about PCI compliance.
PCI DSS is an acronym for Payment Card Industry Data Security Standard, a set of laws produced by major payment card brands such as Visa, MasterCard, American Express, Discover, and JCB. This scheme mandates that enterprises adhere to twelve general data security rules that all merchants must observe.
Credit card firms must comply with PCI to secure online transactions and prevent identity theft. According to the PCI Compliance Security Standard Council, any merchant that wants to process, store, or transfer credit card information must be PCI compliant.
Even though the PCI DSS was introduced in 2004, Verizon’s analysis indicates that only 36.7% of firms were actively maintaining compliance processes in 2018. The situation is grave.
Obtaining compliance on your own is a difficult and time-consuming operation that might take weeks. You must apply and be ready for a lengthy and costly procedure. For this reason, most merchants work with payment providers who handle all PCI-related concerns.
Tokenisation is a technology that makes it easier to enhance payment security and provide a vulnerability-free payment procedure. It aids in authenticating the consumer during the purchase without compromising the transaction’s security.
The procedure employs tokens, random strings of characters that replace sensitive information such as a 16-digit credit card number. Tokenisation decreases the likelihood of a data breach since it is useless to fraudsters if a token is taken.
3D Secure authentication is an extra layer of protection for card-not-present transactions. Three Domain Secure is a message system involving three domains: a bank, the technology that handles the transaction, and the issuing bank. The system typically demands tokens or biometrics to validate cardholder information, which can reduce the number of fraudulent attempts. In addition, the obligation for each correctly confirmed transaction is transferred from the merchant to the issuing bank.
Service of Address Verification
AVS, commonly known as an Address Verification Service, is a security feature to prevent fraudulent debit and credit card transactions. The tool validates whether the billing address provided by the cardholder corresponds to the address connected with the card.
During a credit card transaction, the address is confirmed as part of the merchant’s request for permission. The credit card processor provides the merchant with a response number that indicates whether the transaction should be approved or declined.
There may be an address mismatch, for instance, due to a mistake or obsolete information.
This section describes other anti-fraud measures you can use in conjunction with AVS to prevent fraud.
Payment Processing vs Payment Gateway
Payment processing is the method used to facilitate secure transactions. Payment processors consist of card readers and point-of-sale systems that transmit financial data between a retailer and a customer’s bank account. For successful card processing, as a business owner, you will need to know how to use payment processors to accept credit card payments.
For online and e-commerce payments, payment gateways are the services and technologies used to transmit the transaction status, whether a payment has been approved or declined. These two techniques of enabling payments are comparable, but one concentrates on in-store transactions and the other on internet transactions.
These systems can process all payment methods, including gift card transactions for your business.
SabPaisa Payment Gateway is the world’s first API-driven unified payment gateway, that supports maximum payment methods, such as credit cards, debit cards, wallets, UPI, and more than 10 lac e-cash counters. SabPaisa is highly secure with industry-leading tools & standards and is PCI-DSS & SSL certified.
Features that give SabPaisa an edge:
- SabPaisa offers multiple online and offline payment modes
- One of the highest success rates
- Top-notch security
- Best-in-class support
How do you prevent payment fraud?
It is crucial to prevent payment fraud.Fraud is costly and diminishes your reputation in the eyes of your customers. Its discovery can be time-consuming and requires a great deal of expertise. It is difficult to detect suspicious activities since they are rarely identical.
Several steps you can take to prevent payment fraud online are outlined below.
1. Maintain a record of your orders
Be vigilant before shipping orders, especially international ones. Additionally, be aware of late-night and early-morning orders.
You should require a signature upon delivery to ensure the order has been delivered and is in good hands.
2. Regularly update product or service descriptions
Incomplete or mismatched descriptions increase the likelihood that a customer will initiate a chargeback. Consequently, ensure that the product descriptions on your website are complete and accurate.
Check your billing descriptors as well; they should correspond to your business name so that customers can easily identify transactions on their bank statements. Customers unfamiliar with your brand are more likely to dispute a charge.
3. Send email order confirmations
Send immediate email messages to your customers after placing an order on your website. Include all transaction details to keep customers informed of their transactions’ status.
4. Make shipping information accessible on the website and in real-time
Customers want to know the shipping costs and deadlines before they click the “Pay” button. You must provide tracking information to inform them of their package’s location and notify them immediately of any delays.
Sometimes, expedited shipping can be useful. People are impatient, and a lengthy wait for placed orders may lead to a transaction dispute.
5. Establish a transparent refund policy
Make your refund policy visible and simple to comprehend for site visitors. When customers are dissatisfied with a product, they order and refund their money.
Specify the procedure for returning the item and requesting a refund. It can help you avoid chargebacks and negative feedback.
Create transparent return policies. Chargeback management will be more expensive and time-consuming than return management.
6. Keep all order history information
Keeping track of previous fraudulent activities is advisable to identify suspicious patterns and transactions.
Additionally, keep meticulous records of all transactions so you can easily gather evidence and valid proof in case of a chargeback.
7. Examine trends
As the sophistication of fraudsters’ attacks increases, you should keep up with the latest trends. You can develop mitigation strategies by understanding their potential impact on your business.
If you collaborate with reputable payment processors or fraud detection companies, you can rest assured that they strictly adhere to all market trends and regulatory requirements.
8. Respond to customer queries quickly
Resolve customer issues as quickly as possible, as customers who are aware of the status of their inquiries are less likely to initiate a chargeback.
Ensure customer service is available 24 hours a day, seven days a week. If this is not possible, list your support hours on the website and provide an estimated response time for customer inquiries.
You must ensure payment security for your company and customers as a business owner. With SabPaisa Payment Gateway, you can rest assured that online payments for your online store are in good hands.
Our payment gateway safeguards your clients by offering reliable and secure payment system. Don’t hesitate to contact us.
1. What is a secure payment system?
Ans: A secure payment system is a way to process payments that keeps a user’s personal and financial information safe from fraud and unauthorised access.
2. How to secure online payments for your customers?
Ans: Several steps you can take to prevent payment fraud online such as:
- Maintain a record of your orders
- Regularly update product or service descriptions
- Send email order confirmations
- Make shipping information accessible on the website and in real-time
- Establish a transparent refund policy
- Keep all order history information
- Examine trends
- Respond to customer queries quickly
3. How to secure online payments for your customers?
Ans: The most critical factors that will ensure the security of your payments are:
- SSL protocol
- PCI Compliance
- 3D Secure
- Service of Address Verification
4. What is the most secure method of payment?
Ans: Amongst other secure payment systems, credit cards are very safe to use because banks protect the people who have accounts with them.