A lack of payment security is a threat to all businesses, especially as modern-day hackers continue to prowl the internet. As online transactions continue to expand, it’s important to make sure your payment portal is secure and accessible to customers. If you’re able to protect customers against vicious cyber-attacks, they are more likely to be loyal to you. Considering that the average business loses 5% of its annual revenue due to fraudulent behavior, it’s time to do an audit and make sure your payment security standards are up to par.
1. Encryption
Encryption is a common way to conceal data. The payment data appears at random and is nearly impossible to decode. There are two types of encryption –– public key and symmetric key –– but the type that will benefit your business, depends on several factors, including the industry you’re in and your budget.
2. Two-factor authentication
Two-factor authentication provides an extra layer of data security. It requires a customer to provide a second means of verification (like a text message or email code) instead of just a username and password. This is a successful way to keep the hackers at bay and it’s still relatively easy for your customers to get into his or her account. Two-factor authentication is also used to protect social media accounts when payment information is present.
3. Secure Electronic Transaction (SET)
Secure electronic transactions were created by big credit card companies, like MasterCard and Visa, to help keep transactions safe. SET includes functions like authenticating the cardholder and merchant, confidentiality of payment data, and defining clear protocols with providers. Thousands of SETs take place daily all over the internet.
4. Avoid storing customer payment data
Although it might be easier to keep all of your customer’s payment data, it’s crucial that you don’t, to avoid future problems. As soon as a transaction clears, get rid of the customer’s payment data at your earliest convenience. If for some reason you do need to store a customer’s payment information, be sure to invest in a private network to keep it safe from hackers.
5. Tokenization
Tokenization is the most effective way to prevent hackers because it replaces private payment information with randomly generated numbers. Hackers have zero chance of ever cracking the code. Not to mention, every online entity uses a different token, which makes it even more challenging.
As a business owner, keeping your customers’ payment information safe is one of your top priorities. If you need help understanding or increasing payment security, be sure to get in touch with me at Richmond Financial Services.
