Three Ways to Secure the Payment Procedure to Expand E-Commerce Sales

Banking CIO Outlook | Friday, November 30, 2018

Security is one of the primary concern in the e-commerce segment. Cases like identity theft and money fraud are increasing, and therefore one needs to be aware of new security threats that come along with doing business online. Hence, it is essential for the owners to provide their customer with a safe and secure shopping environment. Customers are cautious of data breaches therefore if they encounter businesses which compromise on their payment procedure, they would be likely to stop buying from the latter.

Hence before setting an online store, these three significant security measures should be considered:

1.   Partner with a processor who's aware of online payments

Selecting the right payments processor is the first step for accepting payments online. Chose an experienced payment processing partner who prioritizes security and comply with Payments Card Industry Data Security Standards (PCI DSS).

Check out: Top Financial Security Companies

An experienced processor offers comprehensive support for meeting and maintaining PCI compliance through training programs, vulnerability checks, and customer support. Some processors even reimburse money for the monetary loss that occurs due to the data breach.

2.   Monitor suspicious activities

As an owner of the e-commerce store, you should be aware of the numerous events that raise suspicion that could be the reason for the potential fraud. For Instance, one must make sure that transactions are made through one IP address, using several different credit cards could be fraudulent. This would depict that a fraudster is using different stolen credit cards to make purchases, especially the one which is a large order and is requested to be shipped in a day. But this activity alone cannot identify the transaction as fraud.

3.   Requires Address Verification for sales

E-commerce platforms are more liable for threats as compared to brick-and-mortar locations. It becomes essential for store owners to predict and analyze that the person making the purchase is genuinely the cardholder. Therefore various techniques are adopted like implementing the address verification system in the e-commerce store could be one of the ways to analyze and verify fraud.

This system checks the billing address and verifies it against the cardholder's data from the issuing bank. Therefore if a fraudster attempts to use a stolen card and doesn't have access to the billing address, then the AVS-enabled system will immediately alert you. Therefore, additional security measures must be adopted to establish the identity of the shopper.

Online payments are developing more because of the convenience it provides to the consumer; therefore, vigilance over its security is a subject of concern. The payment system is a critical part for all the e-commerce websites as it is a  platform where the money for both the organization and the consumer is at stake therefore proper security must be ensured.

Weekly Brief

Read Also