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Is an Ecommerce Payment System Secure?

Boaz Gam

Boaz Gam

CEO

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09.08.2021
5 min
The Process of Online Payment Types of Online Fraud How do Payment Systems Ensure Online Payment Security?
How to Choose a Trustworthy Payment Service Provider? Payneteasy Benefits for E-commerce

Ecommerce transactions are a great opportunity to quickly transfer money from a client to a merchant, without errors, high fees, time losses, and long queues.

The Process of Online Payment

Typically, the online payment algorithm looks like this:

  • A buyer chooses a product or service.
  • A merchant sums up purchases and issues an invoice.
  • The buyer agrees to pay the bill and confirms this by entering bank or other payment details.
  • A bank or a payment service provider confirms the identity of the buyer and the availability of funds in the account to pay for the purchase.
  • The merchant confirms the purchase, and the bank or the payment service provider transfers the funds to the merchant’s account.

Types of Online Fraud

  • Payment refund. This case occurs when an online good or service is paid not by a cardholder but a close person. For example, if a family member takes the card and buys something on the Web. Then, the cardholder turns to the bank and asks for a refund claiming that the purchase was made without his/her approval.
  • ATO attacks. In this case, scammers get data using bots, fishing attacks, malware, or stolen documents. Then, using this data, they hack the client’s account and make purchases.
  • Payment data theft. Here, payment information is used to get access to the account and make payments or transfer money to third parties.
  • Credit card number theft. Upon getting this information, bots or specialized scripts try to identify card payment limits and validity by making a lot of online purchases.

How do Payment Systems Ensure Online Payment Security?

No payment system is 100% secure and reliable. However, additional security measures can be applied to protect online transactions, including:

  1. 3D Secure technology allows confirming that it is you who are making an e-payment. Payment systems call such verification services “Verified by Visa” and “Mastercard SecureCode”.
  2. SSL (Secure Sockets Layer). It allows encrypted information to be transmitted securely from a user to the server. SSL platforms transmit encrypted data over HTTPS, which can be decrypted using a special secret key only.
  3. PCI DSS defines the requirements for organizations that store, process, or transmit payment card data. Since mid-2012, all organizations involved in secure payment processing must use security protocols and be PCI DSS compliant. Visa and Mastercard require merchants and Internet service providers to fully comply with this standard.
  4. Anti-fraud systems allow banks and payment systems to identify suspicious transactions and prevent them. This is done due to the implementation of certain rules, filters, and lists, according to which each transaction is checked. Such systems help prevent money debiting if there is a suspicion of fraud. Each transaction passing through an online payment platform is analyzed.
  5. Identity verification. The payment service provider requires to use a complicated password or automatically logs off a session after a certain period of time. This means that the provider is taking precautions to ensure payment security at all stages of payment.
  6. Automated Settlement and Clearing Center (ACH). For example, in the United States, all internet banking transactions, including online money transfers, are processed by an automated clearing house, which is an independent agency offering secure transfers of financial data.

How to Choose a Trustworthy Payment Service Provider?

When choosing the provider, consider the below-mentioned points:

  • The license issued by an authorized organization. The presence of licenses and certificates on the website of the payment system is not yet a guarantee of its reliability. First of all, it is worth checking this information on the official websites of licensing organizations.
  • Security system and certification. The reality of the financial world is that fraudsters are constantly looking for vulnerabilities in payment systems. As a result, due to hacker attacks, the latter lose a huge amount of funds every year. Pay special attention to how reliably online payment services are provided.
  • A KYC secure method. We all want a quick result, so the dislike for the word “verification” is understandable. However, the lack of KYC (“know your customer”) technology in the payment system can turn out to be a much bigger problem later. It is extremely important to understand that without verification, there is no guarantee that all participants in the system are trustworthy. So, it would be most correct to perceive KYC as a part of a secure set built into the product.
  • Finally, the range of functionality and interface responsiveness are also important factors for convenient platform using.

Payneteasy Benefits for E-commerce

Payneteasy is a high-quality and trustworthy solution for your online business. The system is characterized by the highest level of data security and innovative solutions for any type of project.

We meet the standards of PCI DSS Level 1. This security standard is necessary for all merchants in the field of e-com. Still, it is rather difficult (or even impossible) for merchants to obtain it by themselves. While our company has it. When using our service, our clients can connect online payments without spending millions to create an infrastructure that meets PCI DSS standards and protect their customers, allowing them to make payments in a secure environment.

To protect our clients, we use a multi-level anti-fraud system to ensure better experience on the platform. The system analyzes traffic by filtering transactions and identifying fraudulent activity.

Ethoca integration provided by Payneteasy allows decreasing chargeback ratio and getting an impeccable reputation on the market.

The more we use e-pay finance, the more scammers hunt them. Thus, the topic of security will always be relevant. The main thing is to find a trustworthy payment gateway that will provide secure online payment solutions and keep your transaction out of the danger zone.

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