Around 100 million online transactions happen every day. That means millions of people share their sensitive information on payment systems. The responsibility to keep this information safe and secure falls into the lap of both payment systems and business owners. That is how long-term trust and brand loyalty are built.
If you too have been worried about the security of online transactions for your ecommerce business, you are at the right spot. In this article, we are going to share what you need to check in an ecommerce payment system to make sure it’s 100% secure for you and your customers. Let’s get started.
Security Measures That Top Ecommerce Payment Systems Use
1. SSL (or TLS)
SSL or Secure Sockets Layer is a crucial technology for securing online transactions. Think of it like a security guard for your data. It encrypts information flowing between your website and users, ensuring sensitive details like credit card numbers are safe from prying eyes.
To implement SSL, ecommerce payment systems obtain an SSL certificate from a trusted certificate authority (CA). Once installed, the website’s URL will change from “http://” to “https://,” indicating that the connection is secure.
This is especially important for e-commerce sites as it helps build trust with customers by showing that their information is safe.
2. Data Encryption
Beyond SSL, ecommerce payment systems add another layer of security with data encryption. This process turns user-entered info into a secret code that only the payment gateway can decode.
For instance, when a user enters their credit card details, the information is encrypted into ciphertext. Even if a hacker intercepts the data, they cannot read it without the private key. This ensures that sensitive information remains secure and protected from unauthorised access.
3. SET Protocol
Secure Electronic Transaction (SET) is a protocol developed by major players like Visa and Mastercard to ensure secure online transactions. SET uses digital certificates and digital signatures to authenticate transactions, keeping the user’s card information hidden from merchants.
When a user makes a purchase, SET generates a digital certificate that verifies the identities of the involved parties (the user, the merchant, and the bank). This process ensures that only authorised parties can view the transaction details, maintaining privacy and security.
4. Tokenisation
Tokenisation is a security technique that replaces sensitive card information with a unique identifier called a token. This token can be used for transactions without exposing the actual card number. If a token is intercepted, it is useless without access to the payment gateway that can map the token back to the original card number.
For example, when a user makes a purchase, their 16-digit card number is replaced with a token. This token can be stored for future transactions, eliminating the need for users to re-enter their card details each time.
As per RBI guidelines, businesses and payment aggregators are banned from storing customer card details. So, choose a payment solution which makes your businesses 100% RBI compliant. Tokenisation enhances security by reducing the risk of card information being compromised.
5. 3D Secure Authentication
3D Secure Authentication adds an extra layer of security to online transactions. It involves three domains: the user, the merchant, and the payment gateway. When a user makes a purchase, they are redirected to their bank’s website for authentication. The bank may require a password or a one-time passcode (OTP) to verify the transaction.
This process ensures that the merchant never sees the user’s card details, and the bank verifies the transaction directly with the user. By adding this extra step, 3D Secure Authentication helps prevent unauthorised transactions and enhances the security of online payments.
6. Address Verification Service (AVS)
Address Verification Service (AVS) is a security measure that verifies a user’s billing address during a transaction. When a user enters their billing address, AVS checks it against the address on file with the card issuer. If the addresses match, the transaction proceeds; if not, it may be flagged or rejected.
While AVS is not 100% secure (as billing addresses can also be stolen), it adds another layer of security. By verifying the address, AVS helps confirm the user’s identity and reduces the risk of fraudulent transactions. It should be used along with other security measures for optimal protection.
7. Anti-Fraud Tools
Anti-fraud tools leverage advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) to detect and prevent fraudulent activities. These tools analyse transaction patterns to identify anomalies and flag potentially suspicious behaviour.
For example, if a user suddenly makes a large purchase from an unfamiliar location, the system might flag it as suspicious. Anti-fraud tools can differentiate between normal user behaviour and potential fraud, allowing businesses to proactively address threats before they escalate.
These tools work on predictive models that continuously learn and adapt to new patterns, making them highly effective in mitigating fraud. While they are not bulletproof, they significantly enhance the security of online transactions and help protect both businesses and customers.
Bonus: Tips to Determine the Security of The Ecommerce Payment System
There are never too many measures when it comes to safety. Below are some extra tips to help you ensure high-end security while using ecommerce payment systems:
- Read Privacy Policies: Look for clear, detailed privacy policies on how your data is collected, used, and protected.
- Research the Payment Gateway: Use well-known, reputable payment gateways like Plural by PineLabs. They invest heavily in security measures.
- Monitor Your Statements: Regularly check your bank and credit card statements for any unauthorised transactions.
- Use Strong, Unique Passwords: Ensure your passwords are strong and unique for each site you use. Consider using a password manager.
- Enable Two-Factor Authentication (2FA): If available, enable 2FA for an added layer of security. This typically requires a second form of verification, like a code sent to your phone.
Time to Invest in a Secure Ecommerce Payment System
With security in your hand, you can easily shift to an ecommerce payment system to boost your business. Just ensure that you purchase a trusted solution. As mentioned before, Plural by PineLabs is creating ripples in the market with its amazing products with high-end security features.
Plural’s Tokeniser encrypts the sensitive card details into a ‘Token’ that is mapped to a business and the actual saved card network. This not only puts your business in compliance with RBI’s guidelines but also protects your customer’s sensitive card information.
Similarly, you can also check out Plural’s payment gateway and Affordability Suite. They are safe and secure and do not compromise customer experience. Visit their website and contact them to get detailed information.
