A fundamental aspect for any e-commerce is to have secure payment processing. As such, at PayRetailers, we want to reveal the best practices for secure payment. Take note!
What is secure payment processing?
When we talk about secure payments, we must bear in mind that purchases made through an online store must offer transparency for users, as payments are made through electronic methods such as credit cards, debit cards, or bank transfers, which must ensure that bank and personal data are safeguarded to prevent and avoid any risk of forgery.
To enhance security, tools such as reinforced authentication, card verification value, address verification service, etc. have been developed. Each of these is a secure payment gateway that controls and prevents fraudulent transactions. Verifications can include passwords and user biometrics, such as fingerprints and facial features.
There are also security protocols such as Secure Sockets Layer, which encrypts user information between the browser and the website, such as credit card numbers, for example.
How does online payment processing work?
An online transaction involves processes where many parties must work together to make a fast, secure payment. Each process is listed below:
- When the user clicks “Pay”, they are directed to a payment page, which connects to the payment gateway. A payment request is created here and sent to the user.
- When the user receives the request, they send the transaction to the e-commerce, which approves the transaction and sends the user the sale price.
- After that, the user makes the payment to the online store, which includes commission charges.
- The banking entity will verify the necessary information by applying security standards and will approve the user by making the corresponding payment.
Best practices for secure online payment processing
Good online payment security will protect shoppers from fraud and boost the reputation of the e-commerce. That is why, by following best practices for security, you will be able to provide a trouble-free experience and therefore take more payments in future.
PayRetailers recommends the following best practices for securely processing online payments.
1. Compare billing and IP address information
Checking the data provided during the transaction can help detect a potentially fraudulent transaction and protect before fraud occurs. The Address Verification Service (AVS) compares the buyer’s IP address with the billing address of the credit or debit card. This ensures that the customer is the cardholder.
2. Require password security
Cybercriminals often try to access user accounts with combinations of names, dates of birth, and frequently used words. Protecting customer accounts with a secure password can add a line of defense. If the user does not remember their password, there must be a “forget password” process that allows them to access their account.
3. Implement 3D Secure
This authentication method is designed for secure credit card and debit card processing to prevent unauthorized use. It also protects e-commerce merchants from chargebacks in the event of fraudulent transactions.
4. Request CVV
The Card Verification Value (CVV) can be used to validate card-not-present transactions, either by phone or online. If credit card numbers have been stolen, requesting the information available on the card helps the e-commerce validate the payment.
5. Continuously monitor for fraud
Online merchants need a payment gateway that detects and manages fraud. Integrated fraud monitoring identifies where there may be a real risk of fraudulent purchase. Companies can establish rules, based on their situation and risk tolerance, that limit or reject transactions that are considered high risk.
Benefits of secure payment processing
New shopping habits and high technological demands have created a wide payment landscape. We must bear in mind that all online shopping must place the utmost importance on fraud management and data privacy. Both elements provide a secure payment solution for a transaction, but what are the advantages of a secure payment process for your business? Let’s look at this below!
- Faster, more effective payment. As an online merchant, you can receive payments in under 24 hours. As such, overall cash flow is better.
- All transactional processes will be carried out in secure channels that comply with data verification standards. Although it seems like a complex process, it only takes seconds to make a reliable payment.
- Convenience for the user, since they can make payments anywhere and at any time with full certainty, with just an Internet connection.
- Having different payment methods offers users a better service experience, as they will be able to choose their favorite transaction method. This flexibility will facilitate the payment process.
- The easier and more secure the payment is, the more likely you are to increase business sales. Your company will become more popular than the competition and you will be able to reach a wider audience and expand.
For secure payment processing to be carried out effectively, you now know that it is important to integrate a secure payment gateway in your e-commerce. It must be able to provide users with an automatic response, as is the case with PayRetailers. We also have alternative payment channels that are completely secure and have been designed to facilitate the user’s purchase and improve the good service offered by your business.