A good and secure payment processing not only protects your customers but also reduces fraud-related chargebacks. Remember, fraud is on the rise. Several businesses have fallen victims to fraud. That’s why you should design a proper payment processing system. Here are the top best practices you should consider when designing a secure payment processing system.

Top Pillars of a Good System

Fraud is real. Fraudsters are becoming cleverer. They are coming up with new ways to steal from customers. That’s why you need to make your payment system more secure. In particular, you should make the checkout area simple and secure. Bring in the best card payment machines UK. Here are real factors for reducing payment risk.

Fraud

Fraud can kill your business. It can turn customers away. Still more, fraud can sink your business into losses. That’s why you need a strong fraud management plan in place. Remember, if your company is involved in excessive fraud cases, your payment system can be revoked. This can hugely kill your business’s brand. Thus, if you still want to be an industry leader, guard your reputation. Put in place a good fraud management plan.

Security

Cybercriminals are increasingly becoming craftier. They are looking for venerable businesses. They are now targeting valuable personal as well as financial data from customers. As a business owner, you should place security features in your POS. These features should make it hard for fraudsters to steal important customer personal information. For instance, encryption features will make it hard for people to access customers’ personal details when making payments.

Compliance

Compliance is an important aspect of any business. In particular, businesses are obliged to comply with regulations set by countries and other regulatory bodies. These regulations are designed to protect your business from fraudsters. As a business owner, it’s important to understand your obligations. Your business should comply with the requirements.

Payment Processing Best Practices

Now that you understand the key components of a payment processing system, it’s time to delve into the best practices. Here are the top best practices that will make your payment processing system secure and reliable.

Matching The Internet Protocol with Billing Address Data

A good payment processing system should easily flag fraudulent activity. It should help you check the details before approving any transaction. For instance, Address Verification Service will help you compare the IP address of a customer before approving the transaction. These details will be counterchecked to ensure that they match. This service is aimed at ensuring that the IP address of the buyer matches the billing address data and information. This is aimed at ensuring that the buyer is actually the real cardholder.

online payment processing security

Encrypt Data

Secure Sockets Layer (SSL) is one of the best protocols for authenticating and encrypting online data. Securing your transactions with SSL or TLS (Transport Layer Security) protocols can go a long way in ensuring that sensitive information is only made accessible to the intended recipients.

Payment Tokenization

This is a unique feature that de-identifies sensitive payment data by simply converting it to a series of randomly generated numbers, referred to as a “token”. The “token” of information is then sent via the internet to complete payment procedures without being exposed.

Strong Passwords

Cybercriminals often try accessing user accounts using frequently used data. These could include different combinations of user names, dictionary words, as well as, birthdays. Protecting your customers’ accounts with a unique password can add an extra layer of defense.

3D Secure

This is another popular method of authentication. It’s designed to prevent unauthorized users from accessing customer cards. Plus, they prevent chargebacks in case there’s a fraudulent transaction. Financial institutions, merchants, and payment networks share sensitive information in order to authenticate transactions. They’re all required to comply with standard regulations for customer verification. And that’s exactly where 3D secure comes in handy. It offers an efficient way to authenticate customer information.

Strong Customer Authentication

SCA is commonly utilized for reducing fraud. Plus, it offers an incredible way to enhance the security of online payments. For instance, it might prompt you to type something you know, something you have, or something you’re (voice recognition and fingerprints).

Continuous Fraud Monitoring

As a business owner, you need to implement a dynamic payment gateway. The system should be able to continuously detect and manage fraud. Essentially, the built-in fraud monitoring feature identifies potential areas where there could be a fraudulent purchase.

Depending on your situation, you can always set rules that reject high-risk transactions or those that require manual approval before they’re completed.  

PCI Compliance Management

If your business involves storing and transmitting credit card information, then you need to make sure that you’re PCI compliant. Data breaching can lead to costly fines, as well as, penalties. Plus, it can significantly damage your reputation.

But the good news is that there are numerous payment processors that can help you maintain compliance. However, it’s your obligation to try and understand your compliance requirements.

Train Employees

Equip your employees with the right skills. Train them on how to recognize payment errors and respond appropriately. When your staff understands how to secure the payment process, they’ll be better prepared for fraudulent activities as they’re happening. And this can go a long way in preventing data security incidents. Train your employees on how to handle complex business settings. For instance, what is a commercial kitchen? How can they handle payments? What are the possible areas of fraud? 

Offer Different Payment Options

Implement various options. Your customers need more payment options. Investing in numerous payment capabilities can significantly improve your customer experience. It’s also imperative to note that most customers prefer a simpler payment process that includes streamlined registration and improved online functionality. So, try as much as you can to incorporate these features into your payment process. Offering your customers numerous payment options is one of the best ways to generate leads. You will get more customers.

The Bottom-Line

Don’t expose your business to fraud. Protect your customers from online fraud. Bring in a good payment processing system. Ensure it comes with security features that protect everyone involved. Thus, don’t bring in any payment processing system. Bring in a system with the above best practices.