Since the COVID-19 pandemic, online transactions have surged like never before. According to Statista’s Digital Payments Report, the value of online transactions is projected to exceed a whopping $2,098,515 million by 2025. However, it’s important to note that online transactions are also susceptible to cyber threats.
Therefore, businesses must implement robust security measures to ensure the safety of online transactions in today’s digital era. If you’re wondering what precautions to take, fret not! Here is a guide on how to set up secure online payment.
#1 Keep your computer secured
Hackers can sneak their way into your computer system too. Even if you have top-notch security protocols protecting your website, storing all your database files on an unsecured computer is a recipe for disaster. Any software you install or hardware you plug in could be carrying viruses that can wreak havoc on your data. Before adding any new hardware device or software to your system, give them a thorough virus scan. Make sure you’re using a reliable anti-virus system that’s up-to-date and capable of catching even the tiniest bugs.
#2 Integrate multi-factor authentication
Asking customers to verify their identity twice might take a little extra time, but it’s totally worth it. Multi-factor authentication, which involves confirming identity through a fingerprint, OTP, or PIN alongside a username and password, adds an extra layer of security. For instance, even if a hacker cracks the password, they won’t be able to enter your OTP or replace your fingerprint. Nowadays, banks use OTP for transaction processing, and if you integrate it on the login page, you’ll have a strong security system.
#3 VPN
To ensure payment security, you need a VPN. Thanks to data encryption, you can be sure that your payment details will not fall into fraudsters. At least no one will intercept them along the way. Where is such confidence? For example, VeePN offers military-grade encryption that is nearly impossible to hack. Plus, VeePN allows you to use 2500+ remote servers, protecting you from risks. Of course, this will not protect against sending money to scammers, but this is already a human factor. Technically, VeePN will do everything possible to protect you.
#4 Tokenization
Tokenization is an additional layer of security that safeguards customer payment data. Some payment processors offer this feature, where payment information is converted into a random string of numbers. If a hacker were to access this tokenized data, it would be completely meaningless and useless. That’s why tokenization is a sought-after online payment security feature. If you are in the market for a payment processor, it’s advisable to inquire if they utilize tokenization. Having an extra layer of security is always a wise choice.
#5 SSL protocol
SSL, or secure sockets layer, is an internet security encryption protocol. It’s mainly relevant for online businesses, but you’ve probably encountered SSL without even realizing it.
You can easily identify SSL usage on a website by checking if its URL starts with “https”. The “https” indicates that the site has an SSL certificate, serving as proof of SSL encryption. Another commonly recognizable symbol associated with SSL is the padlock icon. If you spot a padlock near the website’s URL, it means the site is SSL certified.
#6 Verify every transaction
E-commerce transactions are considered card-not-present transactions, which are inherently less secure. Online businesses can enhance security by verifying transactions in the following ways:
- Requiring customers to enter the security code of their credit card.
- Asking customers to enter their billing address and match it with the address provided.
- Requesting a phone number for potential discrepancies.
- Validating the provided email address.
#7 Don’t save customer information
Avoid burdening your business with sensitive user information, such as storing their card details and allowing potential hackers to exploit them. Instead, refrain from saving any business-related user data in your database after a transaction is completed. If users wish to make future transactions, they should provide their financial information again. By following this approach, you can protect yourself from penalties, complaints, legal proceedings, and government sanctions should anything go awry. It is also crucial to include these practices in your privacy policy, providing evidence in case you are taken to court.
#8 Updated operating systems
Developers constantly strive to stay ahead of hackers, and they often succeed. Even if vulnerabilities appear, it takes only a few days to fix them. Most likely, you will not encounter any bugs or software errors if you update it regularly. It is better to do this as often as possible, and even better – activate auto-update.
#9 Attach a privacy policy statement
Here’s what your product usage policy should roughly look like:
- We understand that customers may have concerns about data security. Therefore, we would like to address some frequently asked questions regarding the protection of their information.
- Firstly, we store financial data in a secure and encrypted manner to prevent unauthorized access.
- Additionally, we regularly update our software to stay ahead of potential vulnerabilities and enhance security measures.
- We have implemented various security protocols to safeguard customer data, ensuring the utmost privacy and confidentiality.
- We empathize with customers who value transparency and would like to see where their information is going. To meet these expectations, we have developed a comprehensive policy that addresses all questions regarding customer data. You can download our policy as a PDF file or visit a dedicated page on our website.
#10 Address verification service
Have you ever had to enter your billing address on a website? That address is used to verify your credit card. If the address you entered matches the one on file with your credit card provider, the payment will go through. Address verification service (AVS) is a widely-used online payment security method. Almost every processor uses it because it’s simple to implement. While not perfect in preventing fraud, it greatly reduces the chance of a fraudulent transaction being successful.
Conclusion
Convenience should not outweigh safety. It is better to donate a few minutes of time per day than to lose all the money on the card one day. Hackers may gain access to your bank accounts and compromise them. Both business owners and customers must prioritize precautions for online transactions.
