Controlling security risk and fraud in online payments

With the fast growth of e-commerce, cyber crimes have also been on the rise. Security is the top priority for ecommerce businesses and in order to protect their customers from any kind of fraud or risk when shopping online, payment gateway service providers are taking strict safety measures. In this article, we will provide you with five safety measures, which can help protect the payment data from fraud.

1. SSL- One of the safest measures to protect the transmitted data is by using SSL. SSL is a standard security protocol that protects data transmission and provides a secure channel for communication between the web server and browser. You can verify if the website has been secured with a SSL protocol by two-ways- check if a padlock icon is displayed, or check if the URL shows https instead of http.


2. Encryption- Encryption is highly effective when we talk about storing secure payment information. During the encryption process, the electronic data is converted into a coded message which can be understood only by the receiver and the sender. Third parties can only access the information with the encryption key.

3. Tokenization-Tokenization is a security measure to strengthen the security of online transactions. It is a process in which the customer’s data, like for instance credit card number is transformed into a random combination of characters which does not have meaning. This token acts as a reference to the original data but if in case a breach happens; no one can derive any value from it.

4. PCI-DSS Compliance- Customers data security is the top most priority for a business owner. A payment gateway that you choose should comply with the security standards. The Payment Card Industry Data Security Standard is a set of standards and policies to ensure secure online payments. To check if the merchant or the ecommerce website is adhering to the PCI standards, look for the PCI-DSS symbol on their website.

5. 3D Secure- 3D secure known as 3 Domain Server is a protocol that provides an additional layer of protection to ensure secure online transactions. This protocol provides the customers with a code called One Time Pin. This pin is provided by the issuing bank for a particular transaction and cannot be used for any other transaction. The customer receives this code by e-mail or SMS, and once this code it entered, only then the acquiring bank authorizes or declines the transaction.

These are some of the safety measures taken by ecommerce companies to secure the customers information but remember not always all of them follow the best practices. It is recommended to always check the reputation of the payment gateway service providers before making the final choice. As a customer, if anytime you have a doubt about the credibility of the merchant while shopping online, do not go ahead with the transaction.