Data protection and security are crucial not just for safeguarding customer information, but for protecting business owners as well. Having and maintaining secure payment systems is integral for protecting yourself and your customers.
Because more credit card-oriented purchases take place online, security and fraud protection are top priorities. Making sure there are secure payment technology policies and procedures within your company will guarantee the integrity of present and future transactions.
Businesses are converting to digital and online platforms to stabilize their profitability at this time. The need for security is at an all-time high and business owners need to enhance protection for their customers and secure their sites to maintain trust.
Sure, you might know about ensuring to have an SSL certificate for your site URL and may have other fundamental factors in place, but secure payment policies require more coordination, effort, and awareness.
If you currently run an online business or you’re interested in adding an online shopping cart to your business, protecting your customers is priority number one.
Security threats can come from anywhere, and that is why you must institute checks and specific credit card processing policies that secure sensitive client details.
Enter secure payment systems (SPS).
Related Content: What is a Payment Gateway?
What Are Secure Payment Systems?
A secure payment system pertains to payment processing solutions and information technology that help protect people’s financial and personal data from fraud and unauthorized activities
A payment processor that implements SPS can protect your business and customer data in the following ways.
Protect Your Customers and Your Business from Chargebacks
When a fraudulent purchase occurs at your online store, it could lead to a credit chargeback. These chargebacks mean directly issuing a refund to the customer whose credit card was used in the fraudulent transaction.
If your business is subject to a chargeback, you and your company can end up paying extra fees to your credit card processor as well.
There are steps businesses can take to respond to a credit card chargeback if the business owner would like to dispute it. But in the case of fraud, securing your payment systems (SPS) is the best protection. When you secure your payment systems, your customers can shop and use credit card payments at your online store with confidence.
Aspects such as chargebacks are a part of payment processing that many businesses may not spend as much time thinking about when observing and instituting secure payment processing (SPS) habits.
But these are the details that matter when processing payments online.
How to Secure Your Online Store with a Payment Gateway
A secure payment gateway is the best tool for protecting your payment systems. A secure payment gateway is a PCI-compliant tool that encrypts and tokenizes cardholder information. This means that the cardholder information is less vulnerable to data thieves, protecting you and your customers from fraud.
The best payment gateway acts as a secure “checkpoint” for transactions from customers to you. Most merchant services providers will offer eCommerce solutions, including shopping cart integrations and secure payment (SPS) gateways.
Implement Security Measures
A secure site will reassure your customers that their information is safe and stays private. Using SSL is a common and necessary step to protect that information. A Secure Sockets Layer, or “SSL”, encrypts the customer’s data as it moves between the website and the server.
An SSL certificate will reassure your website’s visitors that their data is secure if they enter in their payment information. Browsers will even show if a website has an SSL certificate or not.
In some cases, the payment processor may be using Transport Layer Security (TLS). This is an updated version of SSL and it implements a cryptographic protocol that encrypts and secures data sent over the web.
85% of Internet users reported that they would stop using a website if it wasn’t secure. So a TLS or an SSL certificate offers peace of mind and tightens your online store’s security.
Don’t Collect Too Much Information
Another way to boost your site’s security is to collect only the information you need. You’ll be cutting down the risk of a data leak or a security breach if you only collect what you need and don’t require your customers to create an account to check out. At the same time, you’re improving the customer experience by streamlining your entire checkout process.
Research shows that 23% of customers abandon their shopping carts if they have to create an account, while 12% abandon their carts if checking out is too confusing. As such, a streamlined and secure checkout is the best way to protect your customers’ data and keep them happy.
Finding the Right Payment Processor
Ensuring that you have a secure payment system starts with choosing the right credit card processor. That’s why when shopping around for merchant services providers, you must choose a payment platform makes security a top priority. Ask vendors questions on:
- How they keep card transactions secure
- The steps and tools they use to protect credit card information
- How they ensure compliance with Payment Card Industry Data Security Standards
- The financial institutions they work with
- Who has access to payment data
Remember that when it comes to protecting your business, securing sensitive data can be as simple as using the right tools. And a merchant services provider will have the resources you need to protect your business from fraud and data breaches. With the necessary precautions, you can avoid penalties and your customers can shop with confidence at your online store.
Related Content: PCI DSS Compliance: How Stax Protects Your Payments
At Stax, we’re committed to securing sensitive cardholder data. As a Level 1 PCI Service Provider, we take the utmost care in protecting this data. We use a host of security measures to prevent fraud and ensure PCI compliance across all of our products.
Our team will always be available to assist you in staying within PCI standards. In the new digital age of payments and shopping, security is top of mind for businesses. With Stax, you can rest easy knowing your data is protected and secure.
To learn more about our online payment solutions and services or to have a free consultation, don’t hesitate to reach out to Stax today.
FAQs about Secure Payment Systems
Q: What are Secure Payment Systems (SPS)?
Secure Payment Systems (SPS) refer to payment processing solutions and information technology that help safeguard people’s personal and financial data from unauthorized activities and fraud.
Q: How do Secure Payment Systems protect businesses and their customers?
Secure Payment Systems can protect businesses and their customers in various ways. They can prevent fraudulent purchases that may lead to credit chargebacks. By incorporating SPS, customers can confidently shop and use credit card payments on your online store, knowing their sensitive information is protected.
Q: What is a secure payment gateway?
A secure payment gateway is a PCI-compliant tool that encrypts and tokenizes cardholder information to protect against data thieves. This tool can serve as a secure “checkpoint” for transactions from customers, further protecting the integrity of your payment systems.
Q: What are some security measures for secure sites?
Common security measures include Secure Sockets Layer (SSL) certification, which encrypts the customer’s data as it moves between the website and the server. Other tools include Transport Layer Security (TLS), which implements a cryptographic protocol that encrypts and secures data sent over the internet.
Q: Why is limiting data collection important for security?
Collecting only the essential information reduces the risk of data leaks or security breaches. By streamlining your checkout process and not making account creation mandatory, you can further enhance your site’s security and improve the customer experience.
Q: What aspects should be considered in choosing the right payment processor?
When selecting a payment processor, ensure it prioritizes security and complies with Payment Card Industry Data Security Standards. Look into how they secure card transactions, protect credit card information, their associated financial institutions, and who has access to payment data.
Q: What role does a merchant services provider play in secure payment systems?
A merchant services provider can offer the necessary resources and tools to protect your business from fraud and data breaches. They can implement security measures to prevent fraud and ensure PCI compliance across all products, safeguarding the data and giving customers confidence to shop at your online store.