Thanks to technological advancements and the growth of eCommerce, businesses can now accept payments online, making it possible to reach global audiences. Online payments appeal to impulse buyers and automate recurring payments in subscription markets, streamlining the process. It also reduces transaction costs, optimizes customer journey, and allows for various payment alternative methods.
Online payments may be subject to downtime and disturbances. They are prone to cyber security threats, leading to phishing attacks, database exploits, and identity theft. Cybercriminals are constantly coming up with better and improved ways to interfere with online transactions. Here are online payment security tips for businesses.
1. Leverage ID verification
While online payment processing systems allow users to make online and in-person purchases effortlessly, they are highly susceptible to data breaches, scams, and frauds such as credit card fraud and identity theft. Using fraud prevention solutions such as a credit card scanner, you can ascertain the customer’s identity making payments and whether the credit card belongs to them. It also protects your business from accepting fraudulent notes as money is paid directly into the merchant’s account.
2. Verify all your transactions
Verifying each of your transactions helps secure online payments. For easy verification, make it mandatory for customers to add their CVV number or security code at the back of their cards. Ensure an address verification match and monitor client purchase patterns to spot anything out of the ordinary. For example, if you notice a suspiciously large order from a return client, consider calling them so you can verify the order.
3. Avoid storing credit card payment details
Small businesses are more prone to hacks, and this is why they shouldn’t store personal customer billing data in your database or cloud. To protect your business and clients, avoid storing card numbers, and if you must, keep the last four digits to help with client identification.
Don’t save the CVV code and delete all the billing details after each transaction. If it’s necessary to store customer data, protect it by keeping it in a third-party cloud-based server or using encryption so no intruder can access it.
4. Use tokenization
Tokenization involves exchanging card data for secure and unique digital tokens that you can store in a database. Using solid encryption methods, a secure key is created to lower the interception risk of customer payment information. Tokenization reduces the risk of data breaches and helps you achieve and maintain industry regulation compliance.
5. Rely on a secure online payment system
Partnering with a trustworthy and secure online payment platform keeps your online payments safe. When choosing an online payment system, go for reputable and trusted platforms. Find a company with excellent reviews on trusted sites like Consumer Affairs and ensure their transparency about security measures in place.
6. Educate your customers on data protection
Although a good website can protect customer data, educating your clients on online payment security is essential. Encourage your customers to use the most robust VPN, latest browser versions, and other security measures to protect their sensitive data. You may consider sharing this information on your newsletter or website.
When making online purchases, customers want the assurance that their payment data is protected. Consider using the above tips for secure online payments and to improve your business reputation.