Is An Online Payment Gateway Safe For Transactions?

Online shopping is booming nowadays; earlier, it was due to the pandemic, but now people are happily doing online shopping because of its convenience. However, with most customers living a fast-paced lifestyle, anything that can save you time will be the first preference. As a merchant, a massive demand for online shopping means you can get more opportunities to earn. But also, you have an essential responsibility to ensure that your payment gateway is secure enough to protect customers and your data. In this blog, we will discuss some ways to help you find out if an online payment gateway is safe for transactions.

Ways To Ensure An Online Payment Gateway Safe For Transactions:

• PCI Compliance

PCI is non-negotiable when you are processing payments through your website. The Payment Card Industry Data Security Standards offer this set of rules to help merchants secure payment gateways to protect their customers. Now, suppose you need to be made aware of being PCI compliant. In that case, you need to choose a suitable payment gateway provider that is PCI level 1 compliant, or else you are at a higher risk of paying PCI non-compliance fees. 

• SSL

The Secure Sockets Layer (SSL) protocol is among the best ways to ensure the payment gateway is secure. It is one of the things that intelligent shoppers look for when choosing the correct website to buy products. 

SSL is a system that encrypts the data offered on your site to make sure that fraudsters will not gain access to them. If you observe a padlock icon with an HTTPS address on your URL handle, your website is SSL secured.

• SET

Secure Electronic Transaction is a system and electronic protocol that encrypts the payment data of credit cards. SET is designed by joint card schemes VISA and Mastercard concealing all the personal details on the card, which prevents fraudsters from accessing the information. It also blocks merchants from seeing personal data.

• 3D Secure

If basic security features are not enough, then the payment industry forecasts that more businesses will use 3D security to provide an additional layer of protection against fraud in credit and debit card transactions. The tool develops a secure password for the consumer’s credit card to ensure every transaction is valid. 

• Tokenization

Sometimes there comes a time when high-profile scammers can still hack basic security protocols. To ensure that no data is taken, you should ensure that they don’t visit your servers. Tokenization is a process under which credit card information is interchanged with a randomly generated character string to reduce the risk of a data breach if your network gets hacked. 

This system also develops a unique digit for that data on your networks so that the buyer would not have to provide the same information again while making future transactions. They need to give that number in place of their credit card data. 

• Fraud prevention tools

 The most significant sign of a secured payment gateway is the availability of anti-fraud tools, which should come with your payment gateway plan. These should include data encryption, PCI level 1 compliance, fraud support, and extra protection for sensitive data. 

Moreover, your customers should also be extra cautious and responsible while making online purchases. In addition, as a high-risk seller, choose the right payment gateway provider to help ensure that the customer’s data is always protected. 

• Employee training

Lastly, it’s essential to ensure that the workforce which works in processing payments is familiar with the latest regulations and compliances. Generally, regular training and exams are conducted internally to ensure that all employees know how to inform their customers effectively. The correct information in the employee knowledge base provides everyone is on the right path to prevent fraud.

How Do Online Payments Strive With A Payment Gateway?

• Merchant account

You will need a payment gateway and a seller account to accept payments online. A seller account is a bank account that businesses use for their receivables. During a transaction, your customer’s amount is initially transferred to the merchant account, which stays until you move it to your regular business bank account. 

• Payment processor

When a business prices a buyer for a purchase, a payment processor is a service that authorizes the customer’s card details to ensure sufficient funds in their account. If they do, the payment processor approves the transaction, and the payment is sent to the business’ account. If not, then the transaction gets rejected. 

Final Thoughts:

Whether you operate a small business, own a shop, or work as a freelancer, you will need to depend on digital transactions; having a secure payment gateway will help you generate more customers. In the above blog, we have mentioned some important ways to help ensure that your online payment gateways are safe for transactions and that the buyer’s and merchant’s details are also prevented from fraud.