How Secure Payment Systems Protect Your Customers
Learn how to protect your customers when adding a secure payment system to your website is absolutely necessary.
Photo by Jonas Leupe on Unsplash
Payment transactions can always come with some risks. Fortunately, there are ways to mitigate these risks and one of them is by using secure payment systems. By definition, a secure payment system is a platform that provides financial institutions with the means to exchange electronic payments securely and efficiently.
Financial fraud is a major problem that has been plaguing the e-commerce industry for years. When you read this article, you’re going to learn how important your customer’s security is when dealing with online processors.
As a business owner, this should be of the utmost importance to you for your own protection as well as that of your customers. Online fraud can be a punishable offense and it’s something you want to steer clear of. Depending on the punishment required by the laws of their state, offenders may be sentenced to imprisonment or prison. Sanctions are determined by the amount of the card transaction, its circumstances, and the offender’s criminal history. If you suspect that someone is trying to commit fraud, it’s important to take action immediately.
This is why secure payment systems are essential for eCommerce businesses. They can help you protect your customers (and businesses) from fraud and other risks.
Read further to gain more insight about using such protection.
Only Collect Necessary Information
When setting up an online store, you’ll need to collect certain information from your customers. This includes their name, shipping address, and credit card information.
However, you should only collect and store the necessary information needed for business transactions. The less information you have, the lower the risk of fraud.
For example, you may not need to collect your customers’ birthdates or social security numbers. These are unnecessary pieces of information that can be used for identity theft.
Something as simple as allowing customers to check out a shopping cart as a guest as opposed to creating an account will help keep them coming back. As many as 23% of people decide to not continue online shopping if account creation is a requirement.
Don’t make the online shopping process more complicated than it needs to be. You want customers to be able to make a purchase quickly and feel secure while doing so.
Choose The Best Processor
All payment processors are not the same, so make sure to do your research before choosing one. Some processors are more secure than others, so it’s important to find one that offers the best protection for your business. So don’t hesitate to ask as many questions as possible when interviewing potential vendors.
Make sure you understand what banks the vendor works with, who has access to any payment data, and the process they use for credit card data protection.
Additionally, you should make sure that the processor you choose is compliant with the Payment Card Industry Data Security Standards (PCI DSS). This is a set of security standards that all businesses must follow if they accept credit card payments.
Use Secure Sockets Layer (SSL)
When customers enter their credit card information on your website, you need to make sure that the data is encrypted. The best way to do this is by using Secure Sockets Layer (SSL).
This type of security encrypts all information that passes between your browser and server. You can tell if a website is using SSL if the URL begins with “https” instead of “http.” You may also see a padlock icon in the address bar.
If you’re not using SSL, your customers’ credit card information could be at risk. Hackers could intercept the data and use it for fraud or other crimes.
PCI DSS Requirement 4 requires all businesses to use SSL when transmitting credit card information.
How Secure Payment Systems Also Help Businesses
If someone commits fraud in your business by using a stolen credit card, you could be held liable for the charges. This is why it’s important to take precautions to prevent fraud.
You will have to issue a refund to the customer in what is called a credit chargeback. This is when the issuer of the credit card cancels the charge and gives the customer their money back.
You’ll also be responsible for any fees associated with the credit chargeback. These can include a processing fee and a penalty fee.
Additionally, your merchant account could be suspended if you have too many credit chargebacks. This could make it difficult for you to process payments in the future.
If customers start hearing about fraud in your business, they may decide to take their business elsewhere. This is why it’s important to not only protect your customers but also your business and its reputation.
Secure Payment Systems Help Everyone
In conclusion, financial fraud is a serious issue that affects businesses and customers alike. However, there are steps you can take to protect your business and your customers. By taking the proper steps to secure your payments, you can help prevent fraud and keep your business running smoothly.