Online shopping and payments have become a part of our lives nowadays. From clothes to groceries and from availing online coaching to hiring a new employee, many interactions occur online.
That makes it important to work on security as the more data is present online, the more insecure and accessible it becomes. That is where a secure payment gateway comes in.
A payment gateway is a service that allows online transactions. PayPal is an example of a widely used and trusted payment gateway.
Read till the end if you want to know what makes certain payment gateways secure.
8 Factors that make an eCommerce Payment Gateway Safe
Below are eight methods that make payment gateways safer for online stores. The factors listed below are the most popular and commonly used ways.
- Data encryption
- SSL Certificate for Secure Connections
- Limiting data storage
- Secure Socket Layer (SSL)
- PCI DSS Certificate
- Secure Electronic Transaction (SET)
Now let’s get into the details of each security method and why it matters for an eCommerce payment gateway.
When you enter your credit card details to make an online payment, that information must be protected. To do so, data encryption is used to protect customer details by encrypting them with a public key. The encryption assigns a key to the data, which can only be decoded with a private key to access that data.
Without the private key, hackers cannot access sensitive information, thus saving the data from theft. Unfortunately, this is a very common way; payment gateways keep data secure and maintain customer trust.
SSL Certificate for Secure Connections
Ecommerce stores that come with SSL certificates and have an HTTPS website address are considered secure and verified places to shop. In addition, the certificate indicates that the information and traffic are safeguarded against attacks.
The certificate also helps prevent hackers from making a copy of the website. Websites securely transfer data on public channels through Secure Socket Layer (SSL). Public channels include browsers and web servers.
The certificate helps to exchange data between two parties safely and ensures no data breaches.
Limiting Data Storage
When a customer visits a site, he is asked for information to carry out necessary actions. Of course, the information needs to be saved to understand the customer better, but asking for too much information can make the customer lose trust.
Also, too much data is harder to secure safely. Thus, limiting the data acquired from the customer is essential to make sure you get the necessary information you need without putting the data at risk.
Fraud Scrubbing Technology
While there are hackers that steal data, there are also people who tend to make fake payments. That occurs when incorrect details are added and seem too good to be true. To stay safe from such situations, Fraud Scrubbing Technology comes in handy.
The technology checks and matches addresses added and the ISP. It verifies whether the billing address is correct and valid or not. If there is any suspicion, it is verified by the customer to ensure there are no issues.
PCI DSS Certificate
PCI DSS (Payment Card Industry Data Security Standard) ensures that the website to its customers provides a secure payment channel. The certificate comes with many requirements, one of which is to use valid software for payments on the site.
Another requirement is not to store sensitive user data on computers for safety purposes. Encryption is also needed to make certain data transfer through public channels is done safely.
Secure Electronic Transaction (SET)
As the name suggests, Secure Electronic Transaction (SET) makes certain transactions and payments performed online are safe. For example, when a customer adds payment details, the debit/credit card information is only shared with the necessary parties.
The payment information remains blocked and inaccessible to unnecessary parties. Digital signatures are also used when needed, which helps gain customer trust and maintain customer privacy.
This is another helpful way to ensure credit/debit card information is not accessible to hackers for misuse. When one enters his credit card details to make a payment, the number on his card is substituted with a randomly generated token.
The generated token has random numbers and characters that hide the actual credit card number. Safe payment gateways use this smart trick. The token is a one-time code that the decryption key can only access.
If the system is compromised, the card information is saved as it’s not available on the merchant’s network, and without the decryption key, the token doesn’t hold any meaning.
While companies take customer data for research purposes, it’s vital that the policies are clear and the customer knows how much data is being acquired as he makes a payment or logs in to a website.
Plus, it indicates to the customer the level of professionalism and how safe the website is.
This article has mentioned eight factors that make a payment gateway secure. These include data encryption, where customer data is assigned a public key to keep it safe.
Another way websites maintain security is through SSL and PCI compliance which means that they adhere to certain standards of security which are widely recognized and respected.
Many companies also limit the amount of customer data they acquire, so they have fewer data to secure. Fraud scrubbing technology and SET are also used to prevent fake orders and ensure online payments are reliable.
Hamza Ali works for Ebridge as a content specialist. Hamza has a passion for serving blogs, and eCommerce is his main area of interest in writing. Apart from writing, his interests include working out and binging Netflix.