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How to secure payment gateway?

Updated time: Sep 1, 2020 , 10:29 (UTC+03:00)

Payment gateways have been a rising industry for online retailers and service providers over the last decade. Growing numbers of users are requesting a secure, fast, and efficient way to transfer money, and corporations such as PayPal, WePay, Stripe, and PayCEC have reacted to this successfully. These emerging companies have sadly attracted the attention of hackers and criminals who see these sites as an easy source of customer and credit card data.

What security principles does your business look for in a payment gateway? Why is ensuring yours passes the test so important? Let's find out.

4 characteristics of every secure payment gateway provider

4 characteristics of every secure payment gateway provider

Point-to-point encryption

Point-to-point encryption (P2PE) is seen as one of the safest ways to protect client transactions. The automated contact that takes place from the moment a customer swipes, dips or taps their card leaves a fraud-prone retailer. Safe payment gateways use P2PE to prevent hackers from intercepting payment data while it is being transferred from a merchant to a payment processor.

The merchants can rest easy with a payment gateway provider that provides P2PE. This helps to ensure less chance of loss of cardholder data or brand image in a data breach, fines for breaches in enforcement and loss of revenue from fraud.

3D Secure

3D Secure is an extra layer of authentication that helps deter fraud in debit and credit card transactions. In particular, the online shopper creates a secure password for the credit card that they use to pay when they want to make a purchase. At that time, each transaction will be verified by password to add additional protection.

Also read: What is 3D Secure Transaction?

Tokenization

Tokenization replaces a real credit card number with a randomly generated string of characters, a one-time transaction-related code. The code or "token" can not be traced back to the cardholder and the numbers are useless for anyone who tries to decode them without the key to decrypt.

Hackers cannot translate these numbers into real values after a data breach, so choosing a payment gateway that provides tokenization eliminates the possibility of payment fraud by using stolen data.

Tokenization also prevents merchants as the confidential card data of consumers is never saved on their systems. It's a different way the safe payment gateway takes on the merchant's risk. When merchants do not keep payment details in their databases, hackers would have nothing to steal from.

PCI DSS Compliance

In 2006, leading credit card brands established the Payment Card Industry Data Security Standard (PCI DSS) guidance to assist merchants and financial institutions provide secure payment solutions.

Many of the criteria under the Standard to establish and maintain cyber defences include:

  • Only purchase and use validated payment tools at your POS or shopping cart website
  • Do not store important cardholder information on the computer or paper
  • Use a firewall on your PC as well as Network
  • Encrypt cardholder data transmission over open, public networks
  • Instruct your staff about security & cardholder data protection

PCI DSS Compliance

Safe and Seamless payment go side by side

Securing online transactions is a real issue for e-commerce vendors, as was made much too clear in the previous year. Significant infringements of data have reached at least 14 major retailers, with many hacks associated with their payment systems. It's now time for a check-in to see if your payment gateway company has the secure payment solutions you need to protect online shoppers.

There are also basic rules that must be followed for both merchants and buyers to make safe transactions. Online businesses must certainly use encrypted payment systems, delete credit card information after transactions have been completed or apply the privacy policy to ensure that consumers know what details will be obtained during the payment phase.

To keep payments safe it takes a lot of time and resources, so merchants should consistently track and analyze all data to make sure there are no open gaps. Watch carefully for any form of threat, assault, and suspicious behaviour and respond promptly if there is anything.

In fact, partner with reputable organizations that help process payments and keep data safe for your users.

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