How Secure are Your Payments? Decoding Payment Gateway Security

Decoding Payment Gateway Security

With power comes responsibility. Payment gateways are immensely powerful in the sense that they are an integral part when it comes to moving money online from one account to another.

While buyers use these payment gateways under the assumption that their payments will go through without any glitch, no one knows how secure they actually are.

We’ve all been party to the transparency and two-factor authentication protocols that ensure all online transactions are smooth, secure, and hack-proof. But are they enough?

Do payment gateways continuously upgrade their systems to make them robust and hack-free? After all, millions of users trust payment gateways to save their cards for online shopping.

Companies should spend significant time and resources to ensure the payment gateway they are going to partner with is the right choice.

It’s a must for large businesses to switch to online payment gateways and for small businesses and new players to choose them as a predominant mode of online payment.

But you should really dig deep to find out how secure their systems are.

How do payment gateways ensure the highest form of security?

When it comes to digital payments safety is the primary concern for online shoppers. However, as digital payments have become a norm now buyers don’t even blink before putting out details on an e-commerce platform. That’s why the onus on ensuring security falls on the payment gateways and online businesses to tick all the boxes that would make online payments safe.

Here are a few things you would want to check before finalizing your payment gateway partner.

  1. Data encryption technologies

Data encryption might sound a bit jargony and technical but without getting into the details it’s quite simple to understand what it does.

Data encryption is the process of encoding sensitive information, which converts original data (known as plaintext) into ciphertext, a secure, new form of the text, that only authorized parties 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 customers enter their 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.

Paytm Payment Gateway not only has strong data encryption in place, we keep it updated as we check for potential threats at regular intervals.

  1. Secure Socket Layer (SSL)

E-commerce companies should partner with only those payment gateways that have the SSL certificate.

SSL is a security layer that has a pair of keys – a private and a public key. They work in tandem to create an encrypted connection between the web browser and the server.

An SSL certificate validates a website’s authenticity and is important to have for safe digital transactions. Most e-commerce websites use SSL to authenticate their identity online.

Today, not having an SSL certificate on your website can severely damage your reputation and drive away customers who wish to use your service.

Choosing the right payment gateway that prioritizes safety is crucial to your business. That is why Paytm Payment Gateway is compliant to all safety regulations and has the SSL certificate that ensures users’ money is safe and secure.

  1. Secure Electronic Transaction protocol (SET protocol)

Online businesses see a lot of digital payments happening through credit cards. SET protocol is the one tool that ensures payments done via credit cards are securely carried out without any untoward happenings.

SET is a security protocol developed by Visa and Mastercard for credit card payments done online.

It uses different encryption and hashing techniques solely for credit card payments. SET protocols mask users’ credit card details as well as keeps payment information and order information confidential.

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.

  1. Tokenisation

In the coming year, this is going to be the top priority for all online businesses that rely on saved cards feature for faster checkout. Why? Because RBI has said that after December 31, 2021 e-commerce and payment gateways can offer checkout via saved cards only if they tokenise their users’ card details.

In simple terms, tokenisation is the process of concealing sensitive details such as the 16-digit debit or credit card number into a unique set of codes, also known as tokens. These are irreversible, which means even if hackers get hold of the tokens there can’t be any foul play.

Ask your payment gateway if it can help your customers tokenise their cards and go with the one that has the proper partnership with card network companies.

Paytm Payment Gateway has already tied up with Visa, Mastercard, and RuPay for tokenisation and is fully compliant with RBI’s rules. Your customers are in safe hands with Paytm Token Gateway, our new product for tokenisation.

The 360-degree approach of Paytm Payment Gateway

In addition to following the above security protocols, Paytm Payouts, a tool that allows businesses to automate their recurring payouts, uses the latest anti-fraud technologies to keep hackers at bay.

We have a well-equipped team of cybersecurity experts who ensure each transaction made via Paytm Payment Gateway is safe.

We are 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.

As an added security layer, Paytm all-in-one SDK scans user devices for the presence of dangerous apps and unless these apps are uninstalled, it does not allow any transaction to take place on users’ devices.

Whether you have started a small business, own an online shop, work as a freelancer, or run an independent business that relies on digital payments, having a secure payment gateway by your side will help you attract more customers.

So, delay no more. Adopt caution and make your online business completely hack-proof by signing up with Paytm Payment Gateway.

Switch to Paytm Payment Gateway

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