Best practices for secure transactions
1. PCI DSS compliance
The Payment Card Industry Data Security Standard (PCI DSS) was initially established in 2006 by the five major payment brands (Mastercard, Visa, American Express, JCB and Discover) and is now managed by an independent committee, the PCI Security Standards Council (PCI-SSC).
The PCI DSS is a security standard for all organisations that store, process and transmit cardholder and sensitive authentication data. It guarantees the implementation of robust security measures to protect the information of all players in the electronic payment chain. It aims to combat fraud and data attacks throughout the payment ecosystem.
2. Tokenisation
Tokenisation is a security technique that replaces sensitive payment card information with unique token identifiers. These tokens have no value outside the payment system and cannot be used by hackers if stolen. Using tokenisation, businesses can significantly reduce the risk of fraud and effectively protect their customers' data.
3. Strong authentication
As required by the European PSD2 directive, strong authentication strengthens the security of online transactions by using at least two of the following three elements: something the user knows (password), has (mobile phone) or is (fingerprint).
This authentication can be set up for different payment methods. 3D Secure, specific to card payments, facilitates this authentication by adding a verification step to online payments. When making a purchase, customers are redirected to a page on their bank's website to confirm their identity using a code (received by SMS, email, etc.) or via a mobile application. 3DSV2, also known as 3D Secure 2.0, improves the user experience and mobile compatibility while increasing transaction success rates and reducing fraud.
4. Data encryption
By encrypting payment information, organisations can assure their users that their payment data is protected so that it cannot be read or intercepted by an unauthorised party. Communication encryption protocols such as SSL/TLS are commonly used to secure transactions on merchant sites and protect consumers' sensitive information throughout the shopping journey.
5. Fraud Monitoring and Detection
Implementing fraud detection and monitoring systems is essential to identify and prevent suspicious activity in real-time. Fraud detection solutions often use machine learning algorithms to analyse transactions and detect anomalies. These systems can immediately alert marketplaces to suspicious behaviour and, depending on the scenarios implemented, block suspicious transactions as soon as the payment is accepted or initiated. This enables rapid response to prevent financial loss and protect customers from fraudulent transactions.
6. Staff training and awareness
A large proportion of security incidents are due to human error. Therefore, it is essential to regularly train employees in security best practices and raise awareness of the need to protect sensitive information. Training and awareness programmes can help reduce the risks associated with negligence or ignorance of security threats.
7. Use a secure payment service provider
Working with a reputable and certified Payment Service Provider (PSP) is key to ensuring secure transactions. The PSP plays a crucial role in ensuring the security of financial transactions. It is vital to ensure that they adhere to the strictest security standards and use the latest technology to protect customer data from threats.