How Secure are Your Payments? Decoding Payment Gateway Security

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Most of us today are familiar with payment gateways. Online shopping has become so commonplace that we completely trust payment gateways to process our payments quickly and securely. We save our credit and debit card details onto various e-commerce websites and willingly use mobile payment systems such as Paytm and UPI. But what makes us feel so safe and secure online? Why do we openly trust these online payment systems as opposed to being risk-averse? How do we confidently log in to our credit card details on e-commerce platforms? That’s because, based on our experience, we can say most of us have had very satisfactory shopping experiences online. We’ve all been party to the transparency and two-factor authentication protocols online that ensure that all online transactions are smooth, secure, and hack-proof.

Furthermore, companies spend significant time, money, energy, and resources to set up these foolproof, lightening speed payment gateway systems. Investing in one goes a long way, as it builds trust among users and feeds into an extant de facto method of payment that millions around the world are accustomed to. It’s a must for large businesses to pivot to online payment gateways and for small businesses and new players to choose them as a predominant mode of online payment.

How do Payment Gateways ensure the highest form of security?

1. Data encryption technologies
If you’re new to tech, you first need to understand data encryption. Simply put, data encryption is the process of encoding information, which converts original data (known as plaintext) into cipher text — a secure, new form of the text, that only authorized parties can decipher. In short, the original information is converted into a new form that no third party can understand. It comprises solid unbreakable algorithms that only payment gateway personnel can decipher. Secure data encryption algorithms prevent third-party hackers from accessing sensitive customer data. Only merchants and payment gateway partners are privy to this data. Once you enter your card details on the system, it gets encrypted through the payment gateway’s public key, and only this private key can decrypt the data. Algorithms may use either the same keys or different public and private keys to encrypt data. With strong data encryption in place, you have nothing to worry about.

2. Secure Socket Layer (SSL)
An SSL certificate validates a website’s authenticity and allows an encrypted connection to be established on websites that host payment gateways to ensure transactions are safe and secure. Most e-commerce websites use SSL to authenticate their identity online. It ensures that customer data is kept private, and all online transactions that happen on the platform are encrypted and secure. Today, not having an SSL certificate on your website can severely damage your reputation and drive away customers who wish to use your service. People are not going to enter their precious card details on a site they do not trust. After all, safety comes first. You can easily buy an SSL certificate online at an affordable cost. Choosing the right payment gateway partner that prioritizes safety is crucial to your business.

3. Secure Electronic Transaction protocol (SET protocol)
SET is a security protocol developed by Visa and Mastercard, to secure debit and credit card payments online. Today, all e-commerce transactions happen through SET and it is an absolute must for small businesses to include as part of their online payment systems. What SET does is completely block out credit card information and thus prevent third-party hackers, unauthorized parties, and even merchants from accessing private customer information. SET uses digital signatures to collect the customer’s credit card information, which is then only accessible to the payment gateway. It extensively uses public key certificates and trusted digital signatures to ensure the highest level of security and thus helps process payments in real-time.

4. Tokenization
When you type in your card CVV or account number, do you notice dots appearing on the screen? That is what tokenization means. Tokenization is a form of a secure payment gateway system, wherein sensitive information is replaced by illegible characters to hide that information. Since most websites now give you an option of storing your card details, all you need to do is type in your tokenized CVV, and your payment will be processed.

Traditionally, most of us have used credit or debit cards to make online payments. While they are still extremely popular, Paytm has revolutionized the way we shop today. Paytm’s advanced payment systems and technologically sound architecture have made it the default online payment destination. All it takes is one tap of the finger to buy anything from a book to a smartphone. If you’re setting up a new business and want to onboard new customers, you must incorporate a secure payment system such as Paytm on your website.

Paytm’s secure payment system

In addition to following the above security protocols, Paytm Payouts uses the latest anti-fraud technologies to keep hackers at bay. We have a well-equipped team of 200 cybersecurity experts who ensure each transaction made on Paytm is safe. Paytm is also certified by the Payment Card Industry — Data Security Standards (PCI-DSS) with 128-bit encryption. We use AI to monitor suspicious activity on the platform and block transactions that seem notorious. What’s more, with an all in one SDK, Paytm also scans user devices for the presence of dangerous apps and unless these apps are uninstalled, Paytm does not allow any transaction to take place on users devices.

Getting started
Whether you have started a small business, own an online shop/e-commerce website, work as a freelancer, or run an independent business, having a secure digital payment system in place will help you attract more customers, and gain their trust in the long run. Furthermore, by partnering with Paytm for business, you can easily set up payment links on your website and follow the safety protocols discussed above to safeguard your website from notorious parties.

Your attitude and how serious you are about payments can make or break your business. To build lasting relationships with your users, you need a robust and highly secure system. It’s the only way you can retain customers and attract new ones in the future. So, delay no more. Adopt caution and make your online business completely hack-proof.

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