Top 5 Security Features For Online Payment Systems

Shoppers want to purchase products and services of their choice using convenient payment options while experiencing frictionless and efficient experiences when they pay. On the other hand, hackers and fraudsters are always on the lookout for vulnerabilities to gain unauthorized access and steal data to make easy money. Therefore, merchants need to be on their toes to protect their business and customers while still delivering great checkout experiences. This is where the best practices for secure online payment processing and white-label payment gateway solutions come into the picture.

Top 5 payment gateway security features

Let us explore the top 5 payment gateway security features that your business and its employees should focus on to stay protected in 2024 and beyond.

#1. PCI DSS Compliance

Any business that handles or processes debit or credit card purchases should fully comply with the international rules and regulations laid out in the Payment Card Industry Data Security Standard (PCI DSS). The primary role of PCI DSS compliance is to offer a standardized approach to businesses across the world to secure, rigorous transaction processes while simplifying the buyer journey and delivering consistently exceptional & memorable customer experiences.

One of the biggest advantages of PCI DSS compliance is that it safeguards businesses and their customers from data breaches, fraud, account takeover, phishing, viruses, Trojans, adware, malware, and many other forms of cyberattacks. Secondly, compliance with PCI DSS regulations improves the reputation of a brand among its customers, investors, and other stakeholders. It also improves customer trust, brand goodwill, brand acceptability, and brand loyalty in countless ways.

Most providers of white-label payment gateway services comply with the stringent PCI DSS regulations, adding to the credibility of white-label payment gateway solutions.

#2. SSL and TLS protocols

Online connections between the browser and the server are encrypted by Secure Sockets Layer (SSL) and Transport Layer Security (TLS) protocols to create end-to-end protection for sensitive information. Both utilize asymmetric and symmetric encryption to protect the confidentiality and integrity of data in transit. This helps in reducing man-in-the-middle attacks and reinforcing the integrity of the communication. While SSL ensures that a record cannot be altered during transmission over an open network such as the Internet, TLS prevents the data from being changed if only one algorithm is compromised.

#3. 3D Secure

3D Secure (3-domain structure) or payer authentication was designed and developed by Visa and MasterCard to authenticate the cardholder's identity and secure online shopping transactions. Visa named its system “Verified by Visa” and MasterCard offers its system under the brand “MasterCard SecureCode.” 3D Secure helps in reducing the misuse of cards & loss of payments and provides security to merchants against fraud loss. It provides secure transactions through SSL encryption and helps in reducing disputed transactions and increasing sales.

#4. Tokenization

Tokenization refers to a process wherein physical assets are transformed into digital equivalents (or tokens) using blockchain technology. One of the biggest benefits of tokenization is that it protects valuable information against cyberattacks and theft. It also helps in the smooth and seamless transfer of tokens between the involved parties without the requirement for intermediaries such as banks.

For instance, payment tokenization helps businesses replace sensitive payment information with random and unique sets of characters (or tokens). This helps in keeping payment data safe and secure during online transactions as the actual card information is not being stored or used. In the event a hacker or fraudster gains access to one token, it's of no use as it doesn't include the real payment details.

This way, businesses can offer a seamless and secure payment experience for their customers while protecting critical customer data and safeguarding against incidents of fraud, identity theft, and data breaches. Tokenization also adds an extra layer of security to the already-secure white-label payment gateway solutions. This is one of the biggest reasons why tokenization is becoming increasingly popular with brick-and-mortar retailers, eCommerce retailers, marketplaces, platforms, and the providers of subscription-based services.

#5. Address Verification Service

The Address Verification Service (AVS) is a popular method to prevent incidents of credit card fraud. Once a customer enters the billing address, AVS verifies whether or not it matches the one on file with the credit card provider. The transaction gets approved only after it is a match. This tool can be an excellent choice to reduce chargebacks and flag suspicious transactions to protect businesses even before fraud occurs.

In addition to these top 5 payment gateway security features, you should partner with a trusted and successful provider of white-label payment gateway solutions. The provider should enjoy an impeccable reputation and track record and must prioritize data privacy and information security protocols.

If you need assistance on how to fool-proof your online business, you can reach out to ITIO Innovex, which is one of the most reputed and successful providers of innovative, customizable, scalable, and frictionless white-label payment gateway solutions.