Each payment involves at least two parties – a payer and a payee, and each is concerned about the security of their funds and all the data used while paying. Usually, the biggest concern is put on personal and card data protection.
Not only cardholders are interested in the security of online transactions, but also banks, stores, and payment systems. They are constantly developing new, more advanced and at the same time expensive means of securing digital transactions and protecting against fraudsters. The reason is simple – they risk money and reputation.
Several parties are involved in each payment: a cardholder, an online store or any other marketplace that offers a product or service, the issuing and the acquiring bank. In some cases, one financial institution may play the role of an issuer and an acquirer.
There are two more essential participants – international payment systems and PSPs – who process the transaction.
Each participant is responsible for the security of the online transaction. There are several protocols and rules for direct transaction participants to know and comply with while paying online.
The Payment Card Industry Data Security Standard, developed by international payment systems, protects bank card data. Any company that intends to make online payments and host payment pages on its side must comply with PCI DSS standards.
The SSL protocol allows for secure transmitting of the encrypted information from the user to the server. Websites that use SSL transmit encrypted data over HTTPS, which can be decrypted only using a unique secret key. This distinguishes them from unsecured sites that use plain HTTP.
This vital step of protection implies verifying the cardholder's identity by the issuer. After entering the card number, its owner is redirected to the server of the bank. Usually, the latter sends the buyer an SMS with a secret code as a means of confirmation. Entering the code you received, you confirm your identity, and the bank authorises the card transaction.
These are special tools that evaluate online transactions and detect suspicious ones. They can prevent money from being debited if fraud is suspected. Each transaction passing through the platform is analysed. After the analysis, there comes a recommendation to reject or apply an additional check.
Purchasers choose the most secure methods while paying for goods and services online. Customers should know what to choose from to enhance the security of their transactions. Now, we’ll list some popular payment methods with the highest level of security.
This option has become a default one for many consumers due to its convenience, simplicity, and secureness. By paying with a credit or debit card, consumers are protected by the card network. In case fraudsters take possession of their card, purchasers are empowered to block it or cancel the transaction using chargebacks or refunds. Moreover, by partnering with a reliable processor, you get an additional layer of security.
Direct debit is the most suitable method for recurring payments or payments by subscription. Direct debit allows charging consumers on due date after a mutual agreement. Such a method is quite secure, but there is one disadvantage – a consumer may not have sufficient funds on their account.
Being an innovative and safe method, QR-code payments are gaining popularity. To pay via this option, customers should scan a code, fill in their bank card details, and press “pay”. This method has gained many enthusiasts due to its ease of use – just print your QR-code and put it near the cashier in your shop, print it in a brochure, or just put it on your website.
All participants of a payment process should pay attention to security guidelines and implement them to protect their data and funds. So, here’s a set of rules to make your payments secure:
One more piece of advice that may add safety to your online shopping: get a separate bank card for this means and do not keep big sums of money there, just a precise amount you need for a certain purchase.
Utilising reliable payment partners adds secureness to all your payment flows. Corefy represents a secure and reliable payment orchestration platform compliant with the highest industry standards, including the PCI DSS Level 1.
We at Corefy take security seriously and provide it on several layers through data encryption, secure coding guidelines, and physical safety of all data, which is hosted with 24/7 security.
