From the consumer’s point of view, online payment transactions are most convenient. After all, an online payment transaction just takes a few seconds to complete. Facilitated by innovative online payment gateways, online transactions are super fast, extremely efficient, and play a significant role in increasing the sales for a business- both offline and online.
While payment gateways make the payment process effortless for businesses, security threats are looming from several corners. From cyber threats to hacking and payment frauds- businesses have to check to thwart cyberattacks constantly.
Data encryption is a standard protocol followed by most payment gateways to protect the users’ information. The entire payment data is encrypted in a secret code that cannot be read by anyone but the payment processor.
Payment gateways use many such security norms. Following are state-of-the-art security standards and protocols followed by reliable payment gateways like Zaakpay to ensure that each transaction that goes through is safe & secure.
A Transport Layer Security (TLS) certificate is the first thing businesses must look for while choosing a payment gateway. A TLS certificate assures the user that all the browser information transmitted from the web is safe. An SSL or a Secure Socket Layer is an advanced encryption channel used to send private data in an encrypted manner. Some online payment gateways like Zaakpay operate on SSL certification, the highest grade certification for information encryption.
To determine whether an online payment gateway system has a TLS certification or not, businesses must look at the URL of the website. If it has an http:// protocol, the gateway or the website does not have the payment encryption system. On the other hand, the https:// protocol indicates a secure online payment system. Updated Chrome and other web browsers have started using the padlock icon to signify TLS certification as well.
To put it simply, tokenization is the process by which your card number is encrypted and converted into a “token.” This token consists of random characters representing sensitive payment information like card numbers, expiry, or CVV. This is done to ensure that your payment data remains secure while the transaction is still being processed. Since the data is stored as a token, the chances of any hacker getting their hands on the actual card number become next to impossible.
It is worthwhile to note that even if the security of your payment gateway or e-commerce website is breached because of tokenization, it becomes impossible for any fraudster to obtain the user’s original payment information. Tokenization, in addition to TLS encryption, ensures the highest security standards for payment gateways.
PCI DSS Compliance
The Payment Card Industry Data Security Standards are the global compliance rules for the safety and encryption of user payment data during online transactions. They are formulated and promoted by the PCI Security Standards Council. The laws apply to all online payment gateways and e-commerce websites and help protect a user’s payment information.
As a part of the PCI DSS compliance, e-commerce websites and payment gateways need to maintain a secure network for the processing of payments, ensuring that all payment data transmitted digitally is encrypted. In addition to this, payment gateways support robust spyware software to protect against potential cyber-attacks and restrict access to confidential payment information. Another essential rule requires India payment gateways and websites to keep all their software and firewall updates in case of any breach.
The PCI Security Council was formed by the four leading card network providers, i.e., Discover, Visa, MasterCard, and American Express, in 2004.
This is another layer of security added to the payment information to keep it protected. Two-factor authentication is the only security step that requires compliance by the customer, whereas the other protocols are practiced primarily by the payment gateways or e-commerce websites.
The idea behind the two-factor authentication process is that the user must enter information that only the user has access to. This can include a One Time Password sent for the transaction to your mobile phone, your CVV, your PIN, along with the userID or password that only you know. For example, when paying via a card, users are first prompted to enter their CVV, which is the first authentication step. Within seconds, the user receives an OTP on the registered mobile number, which acts as the second and final step of verifying the user’s payment information.
Ensuring the safest transactions on a payment gateway
Above stated steps and processes are mandated by global authorities and the Reserve Bank of India for optimum user security for transactions via a payment gateway. Beyond these, India payments gateways and e-commerce websites often take steps of their own to ensure that your private data remains private.
The AI systems within the payment gateway network can often recognize “suspicious” activity by analyzing data patterns and transaction details. Similarly, analyzing other significant data patterns can be a big advantage in taking fraud prevention measures.
The easiest way of ensuring the safety of both the business and the customer is by choosing the right online payment gateway to make transactions. Compromising on safety features can never be a second priority.
Specific India payment gateways like Zaakpay offer special features like allowing users to hotlist their cards in case they detect any suspicious transactions. This step will immediately alert the online payment gateway and trigger their fraud prevention mechanism.