Secure online payments should be the top priority on every business and consumer’s list. For your customers, security is everything when making an online purchase. In this guide we’ll dig into the most secure online payment types for consumers and how merchants can best provide them to customers.
Secure Online Payments Table of Contents
Secure Online Payment Methods
There are tons of methods that consumers may use to make payments online. However, making sure your business offers secure payment methods is imperative. Here are some of the most secure payment methods you can offer.
Credit and debit cards: Most major credit and debit cards offer fraud protection, and many payment processors also provide additional security features, such as two-factor authentication or virtual card numbers. Some consumers even use pre-paid debit cards for online purchases, so a fraud attempt can’t hit their bank account.
ACH Payments/e-Checks: One of the most secure online payment methods. It involves the Automate Clearing House moving money from bank to bank. The federal government oversees this network and imposes strict regulations to protect all parties involved in ACH transactions.
Mobile Wallets & Payment Apps: These are becoming more popular, and secure as the online business community grows. Some payment apps include:
PayPal: PayPal is a widely used online payment system that allows users to send and receive payments securely, without sharing their financial information with the seller.
Apple Pay: Apple Pay is a mobile payment and digital wallet service that allows users to make secure purchases using their Apple devices, without sharing their financial information with merchants.
Google Pay: Google Pay is a similar service to Apple Pay that allows users to make secure purchases using their Android devices.
Using these secure payment methods, you can help protect your business and customers from cybercriminals. Secure payment methods and excellent security measures will make your online environment safer and build customer trust.
How to Make Secure Payments Online in Your Business
If you’re not sure about the security of your online environment, consider doing a full audit of your current practices. Look for areas where you can improve safety without causing too much friction in the payment process. Customers will tolerate a small amount of security measures, which can build trust. However, too many hoops to jump through on the payment screen could cause them to abandon their shopping cart.
Here are some strategies you can use to create secure online payments for your customers:
- Use SSL encryption: Ensure that your website uses SSL encryption, which protects sensitive information by encrypting data sent between your website and the user’s browser.
- Purchase cyber-liability insurance: A solid insurance policy can go a long way in decreasing the impact of a data breach should your business experience one. Shop a few different approaches before deciding, but don’t skimp on quality!
- Implement two-factor authentication: Consider implementing two-factor authentication, which requires users to provide a second form of identification, such as a one-time code sent to their phone or email, before completing a payment.
- Use address verification: Ask users to input their billing zip code when purchasing. This is typically an option with your payment processor, but make sure it is activated.
- Use personal verification: For high-ticket items, using a more thorough verification method can be smart. Personal guarantee will require buyers to enter their driver’s license or passport info, among other things.
- Use PCI-compliant payment gateways: Use payment gateways compliant with the Payment Card Industry Data Security Standard (PCI DSS), which sets requirements for protecting sensitive payment data.
- Implement fraud detection and prevention measures: Use fraud detection and prevention measures, such as IP geolocation, device fingerprinting, and velocity checks, to identify and prevent fraudulent transactions.
- Limit or outsource data storage: Limit the sensitive data you store, such as credit card numbers, and ensure that any stored data is encrypted and protected. Better yet, outsource your data storage to a third party who can protect it outside of your servers and payment system.
- Provide clear payment policies: Provide clear and transparent payment policies, including information on refunds, cancellations, and dispute resolution. Make sure your customers know exactly what the process and expectations are. You should also give them an easy way to contact you if they have concerns.
- Regularly test and update your security measures: Regularly test and update your security measures to ensure you use the latest technologies and best practices to protect your customers’ data. If you don’t have the resources to do this internally, consider getting an outside firm to do this once or twice yearly. The larger your company grows, the more at risk you are.
E-commerce is big business, but so is cybercrime. Consumers must remain vigilant and opt for the most secure merchants, websites, and payment methods when sending financial information. Likewise, Merchants must do everything they can to protect their consumer’s data. By following these strategies, merchants can help create a safe online payment environment for their customers, which can help build trust and loyalty.
