Data security and protection are critical not only for protecting customer information but also for protecting business owners.
As per Statista, for the fiscal year 2022, the value of debit card payments in India was approximately 7.3 trillion Indian rupees, while the value of credit card payments was 9.7 billion rupees. The consistent use of card payments can be attributed to government initiatives aimed at making India a cashless economy.
Since more card transactions are carried out online, fraud and security prevention are top priorities. Having secure payment technology procedures and policies in place for your business will ensure the integrity of current and future transactions.
Businesses are currently adopting digital and online platforms to stabilise their profitability. The greatest risks of doing business online are data security breaches and online payment scams. In the month of May 2022, the government received over 61k complaints of digital payment fraud.
So, there is a clear need for security and business owners must improve customer protection and secure their websites to maintain trust. That’s where secure payment systems come into the picture.
What are secure payment systems?A secure payment system is a payment processing and information service that provides users with online security. A secure payment system is a kind of payment processing that ensures the security of a user’s financial and personal information against fraud and unauthorised access. These systems must be dependable because huge sums are transferred through them daily. Businesses use different services to ensure that their customers’ payments are secure. Globally, digital payments are constantly evolving the way we do business. eCommerce technology is improving businesses’ ability to receive and accept various payment methods. To do so, a secure payment system as a payment processor is required. People prefer to pay with a credit card, debit card, or online and mobile apps these days, so secure payment systems are essential for all businesses. Read on to learn more about these systems and why they are important to your business. |
Prevent chargebacks for your customers and your business
A credit chargeback may result from a fraudulent purchase at your online store. These chargebacks imply reimbursing the customer whose credit card was used for the fraudulent transaction.
If your company is subject to a chargeback, it may be charged additional fees by your credit card processor.
If the business owner wishes to dispute a credit card chargeback, some steps can be taken. However, in the event of fraud, securing your payment systems is the best defence. When you secure your payment systems, your customers can shop using their credit cards with confidence at your online store.
Chargebacks are a component of payment processing that businesses usually overlook when observing and implementing secure payment processing practices.
However, these details are extremely important when handling online payments.
Also Read: Process Refunds & Settle Chargebacks 24×7 with Paytm Refund Advance Account
How to secure online payments for your customers?
A secure payment gateway is the most effective tool for safeguarding your payment systems. A PCI-compliant secure payment gateway encrypts and tokenizes cardholder information. This reduces the vulnerability of cardholder information to data thieves, safeguarding you and your consumers from fraud.
The best payment gateway functions as a secure “checkpoint” for customer transactions to you. The majority of merchant services providers will provide eCommerce solutions, such as shopping cart integrations and secure payment gateways.
Also Read: What is a Payment Gateway & How does it Work?
Some must-have payment security measures
Payment gateways are constantly concerned with sensitive data handling, compliance, and security. Nowadays, technology is a two-edged sword.
Much like digital advancement has transformed global commerce, so have cybercriminals’ tactics for defrauding merchants and customers. Payment gateways must make sure that both merchants and their customers are safe and that all bases are covered.
But what should merchants look for when selecting a payment gateway with the highest security standards? This section talks about the top seven security measures used by payment gateways:
1. PCI DSS Compliance
Payment Card Industry Data Security Standard, or PCI DSS, is a collection of compliance rules and security regulations that major card schemes follow. PCI DSS compliance is required for any business that accepts credit or debit card payments.
Adhering to compliance schemes guarantees a secure environment for credit and debit transactions, with no details vulnerable to card theft and fraud.
Any business that wants to accept online payments must understand PCI DSS standards to make the best decision when selecting a payment partner.
2. Data encryption
Payment gateways primarily use encryption to protect sensitive transaction data. When users enter their credit card information at the checkout, the payment gateway encrypts the information.
Encryption converts data into another form, or code, that only those with access to a secret key can read. The transaction will be decrypted by the payment gateway using its private key. This significantly reduces the possibility of the data falling into wrong hands.
3. Secure Socket Layer (SSL)
SSL is a security technology that establishes a secure connection between a payment service provider and a user’s web browser. Any data communicated over SSL is encrypted. All web browsers support SSL.
If a website is directly processing a transaction, SSL should be installed. This is not required, however, if the website’s visitor is diverted to a secure checkout page on the payment gateway’s domain. The payment gateway would then provide the SSL link to the browser.
4. Secure Electronic Transaction (SET)
SET is a framework and digital protocol that encrypts credit card payment data. SET, developed in collaboration with the major Mastercard and VISA card schemes, hides all personal information on the card, preventing fraudsters from gaining access to it. SET also prevents merchants from viewing that personal information.
5. Tokenisation
Tokenisation is the method of converting sensitive data from a cardholder into a security token. To create a token, encryption, hashing, and secret keys are used.
Because card schemes prohibit merchants from storing credit card numbers unless they are fully compliant with PCI DSS guidelines, using a payment gateway that utilises tokenization is your best bet.
Tokenization improves security by sending sensitive information only once over the internet; once created, the token can then be used for future payment requests.
How to prevent online payment fraud?
Fraud is expensive and erodes your credibility in the eyes of your customers. Its discovery can be time-consuming and necessitates extensive knowledge. This is because suspicious activities can be similar but rarely identical, making them difficult to detect.
Explained below are a few steps you can take to prevent online payment fraud:
1. Keep track of your orders
Before shipping orders, especially international ones, keep an eye on them. Also, keep an eye out for late-night and early-morning orders.
To confirm the order is delivered and in good hands, you should also necessitate a signature upon delivery.
2. Regularly update product or service descriptions
Incomplete or mismatched descriptions increase the likelihood of a chargeback being filed by the customer. As a result, ensure that the items on your website have detailed and accurate descriptions.
Check your billing descriptors as well – they should match your company name so that customers can easily recognise transactions on their bank statements. Customers who don’t recognise your company’s name are more likely to dispute a charge.
3. Send order confirmation emails
Send email messages to your customers immediately after they place the order on your website. Include all transaction details to keep customers up to date on the status of their transactions.
4. Provide shipping information on the website and in real-time
Before they click on the ‘Pay’ button, customers want to know the shipping costs and deadlines. You must provide the tracking information to keep them up to date on the location of their package and immediately notify them of any delays.
Fast shipping can be useful at times. People are impatient, and a prolonged wait for orders placed may result in a transaction dispute.
5. Establish a clear refund policy
Make your refund policy visible to website visitors and simple to understand. When a customer is unhappy with a product they ordered, offer a refund.
Provide specific instructions for returning the item and requesting a refund. It can assist you in avoiding chargebacks and negative reviews.
Establish clear return policies. Return management will be less costly and less time-consuming than dealing with chargebacks.
6. Keep all previous order information.
It’s a good idea to keep track of previous fraudulent activities to spot patterns and suspicious transactions.
Also, maintain complete track of all transactions so that you can easily collect evidence and legitimate proof in the event of a chargeback.
7. Examine trends
As fraudsters’ attacks become more sophisticated, you should keep up with the latest trends. This will allow you to better understand how they may affect your business and prepare mitigation strategies.
If you work with reputable payment processors or fraud detection firms, you can be confident that they strictly adhere to all market trends and regulatory requirements.
8. Respond to customer queries quickly
Resolve customer issues as soon as possible because customers will be less likely to file a chargeback if they know the status of their inquiries.
Operate customer service seven days a week, twenty-four hours a day if at all possible. If that is not possible, list your support hours on the website and provide an estimated time frame for responding to customer inquiries.
On a concluding note
As a business owner, it is critical to ensure secure payments for your company and customers. You can be confident that online payments on your online store are in good hands with Paytm Payment Gateway.
Our payment gateway protects your customers by providing secure and dependable payment options. So don’t hesitate –
