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April 16, 2019

5 Safety Measures Companies Must Take To Ensure Secure Online Payments

Making online payments shouldn’t be scary at all. The priority of many online businesses is to ensure secure online payments, and in this guide, we are going to discuss safety measures companies must take to protect payment data.

The Importance of Ensuring Secure Online Payments

Consumer behavior has changed dramatically over the last few years. The increasing popularity of e-commerce and digitalization of payment methods have played a vital role in this change, and the results are quite impressive-e-commerce sales in Q1 2017 reached $105 Billion, to make up for an 8.5 percent of all retail sales and a 14.7 percent increase from 2016. 

However, as the e-commerce industry continues to grow, so does the gang of cybercriminals. To counter the increasing threat, companies and merchants must take stringent safety measures to ensure customers stay safe when making online payments.

Many customers don’t know what happens with their payment data after making an online payment, and this is an issue for them.

In this guide, we will walk you through the 'behind the scenes' of safety strategies companies must take to ensure secure online payment. However, keep in mind that not all companies follow the best practices when it comes to data protection; therefore, always check the reputation of the company before making an online payment to them.

1. SSL (Secure Sockets Layer)

With the network security technology WPA2 proving to be vulnerable, allowing attackers to hack into connections between computers and the internet, SSL has remained one the best ways for protecting the transfer of data. It is therefore important to ensure that any website you visit is using it.

An SSL is a standard security protocol that provides a secure link between a web browser and web service in online communication.

In other words, SSL is used to protect the transmission of data, ensuring that you are connected to the right server. It also checks the integrity of the data to ensure that it has been delivered as it is supposed to.

So, how do you know if a website is using the SSL protocol technology?

When you visit an Online casino in the Philippines or any website, check to see if there is a padlock icon on its address bar or if its URL has an ‘S’ in front of the HTTP.

2. Encryption and tokenization

When it comes to ensuring safe online transactions, these two technologies play a critical role, but they are different:

Encryption involves the conversion of electronic data or information into a code to prevent unauthorized access. Only the sender and the receiver can understand an encrypted message. A third party will need an encryption key to read the message.

You can think of encryption as a safe deposit. You cannot open it if you don’t have the correct key. Encryption technology plays a vital role in exchanging sensitive information such as credit card details across networks and devices, thus allowing for safe online purchases.

Tokenization involves substituting a sensitive element, such as a credit account number, with a non-sensitive equivalent (token) that will have no meaning when exploited.

The token only serves as a reference to the sensitive element, but no value can be derived from it. This technology plays a vital role in strengthening the security of online transactions.

3. 3D Secure

3D Secure is a security protocol that adds a layer of protection for businesses to authenticate online credit payments.

Customers receive a One Time Pin from the issuing bank for that specific transaction (you cannot use it for any other transaction). The code is sent to the customer via SMS or email, and after entering it as it is, the acquiring bank will either accept or decline depending on whether it is correct or incorrect in that order.

3D stands for 3 Domain Server because it includes the card issuer, acquiring bank and the merchant.

4. PCI (News - Alert)-DSS Compliance

Compliance with PCI-DSS (Payment Card Industry Data Security Standard) is one of the most important measures a company must take to ensure secure online transactions. Any company that handles, processes, and stores credit information must comply with the PCI-DSS.

PCI-DSS are policies and standards put in place to ensure safe handling of credit card information and protection of payment transactions against cyber attacks and security breaches.

All hotels, travel agencies, e-commerce websites, airlines and call centers must meet PCI-DSS requirements. 

In short, PCI is a must-have when it comes to processing payments on websites. When looking for a merchant to shop online, make sure that he complies with the safety standards; otherwise, you will be at risk of becoming a victim of identity theft, fraud or data breaches.

To know if the merchant you have chosen is PCI-DSS compliant, try to look out for the PCI-DSS symbol on their website.

Some websites might be compliant without the symbol on their website, but don’t take any risks.

5. Updating operating systems regularly

Failure to update operating systems to the latest versions makes it more vulnerable to external attacks. Businesses that follow the best online safety practices must ensure their systems have the latest security updates.

This is important because hackers are working on new ways and methods to break into systems, making older versions of vulnerable to attacks. You need to set up automatic updates for the whole network to keep online transactions safe.

Before you make an online payment, make sure you choose the right merchant or payment processor. Keep your eye out for necessary security symbols. Most importantly, don’t make a payment if you doubt the merchant’s credibility.

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