8 Secure Payment Strategies: Key to Safeguarding Business Transactions

Can your customers trust you to safeguard their credit card information when they purchase from your online store? If not, why would they continue supporting your business? That’s why prioritizing the security of your customer’s payment data through secure payment strategies is crucial. Trust from customers will ultimately have a positive impact on your business’s profitability.

For small business owners, this task may appear daunting and complex, but it’s simpler than you might think. Follow these security tips when accepting online payments to ensure the security of your customers’ information.

What is Payment Security?

To protect financial transactions from unauthorized access, data breaches, and fraud, businesses, both online and offline, must ensure payment security. By doing so, you can maintain customer confidence, minimize financial losses, and comply with relevant regulations and industry standards.

Online Payment Security Tips for Business

1.  PCI Compliance

If you accept debit and credit cards online for your business, you must adhere to the guidelines of the Payment Card Industry Data Security Standards (PCI DSS). These standards outline protocols to enhance the security of online payments, minimizing the risk of fraud and data breaches. By complying with PCI standards and using secure payment options, small businesses can avoid hefty fines and maintain the ability to accept credit card payments. Regular PCI scans are also highly encouraged to protect your payment networks.

2.  Limit the Collection of Customer Data

Strict standards are in place concerning the storage of customer data, such as not retaining CVV data. This precaution is because 95% of credit card breaches originate from small businesses. The simplest way to address this concern is to dispose of payment information after each transaction. If there is a need to store information, such as a customer’s name and account number, appropriate measures should be taken to safeguard this data, such as utilizing a private network or cloud-based storage or encrypting the data to prevent unauthorized access. Furthermore, in compliance with the Fair and Accurate Credit Transaction Act of 2003 (FACTA), it is prohibited to include the complete credit card number and expiration date when emailing a receipt to a customer. Only the last five digits are permitted to be displayed.

3. Choose a Secure Payment System

The issue of small business payment security is not so easy to establish with a superficial study. However, there are segment leaders who have been on the market for decades and have not been involved in serious hacks. Relatively secure PayPal can be considered one of the flagships of multi-currency, international trade. You should still take a closer look at how safe PayPal is and how you can improve your security. Business cyber security depends on how well your staff is trained, whether you use a reliable VPN such as VeePN, whether you have strong passwords, etc.

4.  Implement Fraud Detection

Fraud detection systems utilize a blend of data analysis and machine learning algorithms to spot and prevent fraudulent transactions. To implement a fraud detection system, start by gathering data on previous fraudulent transactions and other relevant information, like customer demographics and purchase patterns. Utilize this data to pinpoint warning signs and build predictive models that aid in detecting future frauds. This way, you can swiftly intervene and prevent fraudulent transactions from going through.

There’s a growing inclination towards using machine learning algorithms. Through training, they become adept at recognizing patterns and anomalies in transaction data, which often indicate fraud. Instances of unusual spending patterns, unconventional shipping addresses, and high-risk transaction types can be swiftly detected with this cutting-edge technology.

5.  2FA

You can also opt for two-factor authentication for your payment transactions. It’s a potent tool that thwarts fraud attempts by requiring users to provide two forms of identification – a password or a one-time code – before approving a transaction.

6.  Use an SSL Certificate

The padlock symbol next to a website’s URL indicates that it has SSL encryption. This encryption ensures the safety of your data as it travels between your browser and the server, preventing hackers from intercepting it. It enables you to make online payments without concerns about others accessing your information. Instead, you can check here the browser extension and get transaction protection on all sites, not just those with SSL. However, you should not rely on your clients to protect their data themselves; it is better to offer a reliable HTTPS connection. Almost all reliable websites prioritize SSL certificates to enhance security.

7.  Verify the Transaction

To ensure transaction verification, you have several options, even in the absence of a customer’s card. These include:

• • Always verify the address (AVS match).
  • Requiring customers to enter their card security code, also known as the 3 or 4-digit CVV number on the back of the card.
  • Remaining alert to abnormal patterns, such as unusually large orders from returning customers, and promptly contact the customer.
  • Scrutinizing details like unfamiliar email addresses, products shipped to high-risk locations, and customers not taking advantage of free shipping offers.
  • Considering the acceptance of eChecks, which require verification through the ACH network.

8.  Update Your Systems

It’s common knowledge that outdated systems are susceptible to cyber-attacks. Whether you use WordPress, Shopify, your server’s c-panel, SQL, PHP, or antivirus software, ensure you promptly download any new updates. Although these updates are usually automatic, it’s advisable to err on the side of caution and ensure you’re running the latest versions of your business software.

Conclusion

Payments are the most desired segment of the Internet for all attackers. Although payment systems are constantly working on secure payment strategies, there are a lot of vulnerabilities on our side that PayPal or another service cannot protect against. We must work on ourselves and our product, and leave the rest to a reputable transaction service provider.