Secure Payment Processing 101
TABLE OF CONTENTS
- Secure payment processing is crucial for merchants to protect customer data and prevent fraud.
- Key factors for secure payment processing include authentication, confidentiality, and integrity of transactions.
- Different methods of secure payment processing include SSL encryption, TLS encryption, tokenization, 3-D Secure, and P2PE.
- Merchants should adopt a multilayer security strategy and choose a reliable payment processing partner with strong security measures, compliance, features, and customer service.
- Payment Savvy offers secure payment processing solutions that prioritize data protection, compliance, and excellent customer support. Contact them today to enhance your payment security.
As a small business owner, you know that it’s important to accept as many forms of payment as possible. This way, you can ensure that your customers can pay the way they want to. And when it comes to secure payment processing, you need to make sure that your customers’ data is safe and secure. So what are the different types of secure payment processing? And which one is right for your business? Let’s take a look.
Why is secure payment processing necessary?
As a merchant, you must do everything possible to assure your consumers that the transactions on your website are safe. Customers aren’t thinking about the whole payment procedure while purchasing from an online store, so it’s up to you to pick the best option for them.
Consider the most recent data breaches. Even the most well-known businesses are not immune to cybersecurity concerns. As a result, it’s generally preferable to be proactive rather than hoping for the situation to pass you by. Because credit card transactions remain one of the most frequent paying methods, they are also one of the easiest targets for fraudsters. Because hackers have a profound grasp of how new technologies operate, they are always looking for ways to exploit payment solutions.
What makes a payment secure?
When we talk about making a payment secure, there are three key factors to consider:
- Authentication: This is the process of verifying that the person making the purchase is who they say they are.
- Confidentiality: This ensures that only the parties involved in the transaction can see the information being exchanged.
- Integrity: This means that the data cannot be altered without detection.
There are various sorts of secure payment processing, each with its own benefits and drawbacks. Although it’s nearly impossible to eradicate fraud, several methods exist to protect your data and prevent it from being stolen.
Secure payment processing methods
Secure Sockets Layer (SSL) encryption
One of the most common methods of securing payment information is Secure Sockets Layer (SSL) encryption. SSL certificates create a secure connection between a web server and a web browser. This encrypts sensitive information, such as credit card numbers, so that it can’t be read by anyone who doesn’t have the key to decrypt it.
Most e-commerce platforms offer SSL protection, but you’ll need an SSL certificate installed on your server. You can purchase an SSL certificate from many different companies.
Transport Layer Security (TLS) encryption
TLS is the successor to SSL and is now the most common form of encryption used on the internet. TLS encrypts data in transit so that it can’t be read by anyone who doesn’t have the key to decrypt it.
Like SSL, TLS creates a secure connection between a web server and a web browser. But unlike SSL, TLS uses more robust algorithms to encrypt data. As a result, TLS is more effective at protecting data from being intercepted and read by unauthorized parties.
Tokenization is a process that replaces sensitive data, such as a credit card number, with a randomly generated string of characters called a token. The token is then used in place of the sensitive data.
Tokenization is often used in conjunction with encryption. Even if a hacker were to intercept the token, they wouldn’t be able to read it or use it to make a purchase.
3-D Secure is a security protocol that adds an additional layer of protection to online credit and debit card transactions. Visa and Mastercard developed the protocol to help reduce the risk of fraud.
When you use 3-D Secure, you’re prompted to enter a password or code when you make a purchase. This helps verify that you are the cardholder and that the transaction is legitimate.
Point-to-Point Encryption (P2PE)
Point-to-Point Encryption (P2PE) is a technology that encrypts data when entered, transmitted, or stored. P2PE ensures that your credit card information remains encrypted at all stages of the transaction process, regardless of whether you’re using an online payment processor or a mobile app.
Merchants must be aware that one tool alone cannot protect their businesses. They’ll need a multilayer strategy with more security. Because payment security is such an emotive subject, make sure you pick the best payment partner for your business. Customer service that is accessible when needed is critical for your company’s success.
So, what should you look for in a payment processing partner? Here are four key factors to keep in mind: security, compliance, features, and customer service. Payment Savvy is committed to meeting the highest security and compliance standards so you can feel confident that your customers’ data is protected. Plus, we offer an extensive suite of features to make managing your payments easy, and our team is available 24/7 to help with any questions or concerns you may have. Ready to switch to a more secure payment processing solution? Contact us today! We would be happy to answer any of your questions and get you started on the path to hassle-free payments.