What Are the Security Requirements for Electronic Payment System

This is important because hackers are constantly developing new techniques and methods to penetrate the system, making outdated versions more vulnerable to attack. Setting up automatic updates for the entire network is also an option to secure transactions. Make sure your provider is PCI DSS compliant, and the higher the level of certification, the better. With the development of security standards, it is important that the provider of your choice follows all trends and not only obtains, but also keeps cybersecurity certificates year after year. The key for consumers is to always check what security measures your provider takes before paying. – Daria Leshchenko, SupportYourApp Inc. SCA is used to reduce fraud and increase the security of online payments, and requires the use of two or more elements in the authentication process. Something you know (a password or PIN), something you have (a badge or smartphone), or something you are (fingerprints or voice recognition). In SET, authentication and non-repudiation are achieved by digital signatures, so the parties to the transaction cannot deny that the transaction took place. Each time a customer initiates an electronic purchase, an encrypted digital certificate is generated for the participants in the transaction. This includes the customer, the dealer and the financial institution. SSL only affects companies that sell their products online. SSL stands for Secure Sockets Layer, a sophisticated term that refers to an Internet security encryption protocol.

You`ve probably seen examples of SSL without realizing it. This extra layer of security for online payments ensures that the person using the card is the actual person to whom the card was issued. Some, but not all, payment processors offer this security feature. SET`s security features are superior to SSL and the new TLS, especially in their ability to prevent e-commerce fraud. However, the biggest drawback of SET is its complexity. SET requires customers and merchants to install specialized software – card readers and digital wallets – which means that transaction participants had to perform more tasks to implement SET. This complexity has also slowed down the speed of e-commerce transactions. SSL and TLS have no such problems.

Data protection and security standards set by regulators or individual countries are designed to protect businesses and individuals. Traders need to understand what their obligations are and ensure that they continue to meet the requirements wherever they operate. SET is not a payment system or gateway, but a set of security protocols. It uses some aspects of a public key infrastructure (PKI) to address privacy, authenticity, and security issues in ecommerce applications. One of the best times to eliminate potential security threats is during checkout. 3D Secure is a feature that does just that. When a customer pays for a product or service online, 3D Secure adds an extra layer of authentication managed by the cardholder`s bank. They can be compliant without placing this symbol on their website, but don`t take any chances with security – they probably aren`t. Many consumers fail the most basic security measure for digital payments, which is to check your statements. If you do this regularly, you will notice inconsistencies. If you do not admit an accusation, question it and/or deny it immediately.

Sure, this is a basic practice, but if you don`t, many other practices become useless. – Russell Smith, Rainforest QA, Inc. 4. Have a dedicated payment method for online transactions. From credit cards to mobile wallets and everything in between, digital payments are a convenient (and increasingly popular) option for many consumers. However, digital payments also carry a risk of data breach and other security risks, which means consumers need to take extra precautions to protect themselves. A simple but crucial operational security measure that everyone needs to practice with digital payments is recipient verification. Many digital payment systems don`t have the controls we`re used to from more traditional payments. If you send money to the wrong address/person, it can be lost forever. Try to have the recipient send you a payment request to make sure it doesn`t happen to you.

– Chris Grundemann, Myriad360 SET is designed to meet e-commerce security requirements not met by SSL and Transport Layer Security (TLS). To secure card transactions and protect purchase information, SET uses both symmetric (Data Encryption Standard or DES) and asymmetric (PKI) cryptography. Using a hashing algorithm, SET signs electronic transactions using the sender`s private key. This creates a series of values (message summary) that “sign” a message. The authenticity of the transaction can be verified by comparing the transactional message and message summary to the sender`s public key. In the SET schema, the customer`s order and payment information is encrypted with separate public keys. Order information is encrypted with the merchant`s public keys, and payment information is encrypted with the acquiring bank`s public keys. Fraud management is critical for businesses and may require changes to the payment methods offered and additional verification of the buyer`s identity. High fraud rates can cause credit card companies to revoke a merchant`s right to process payments and negatively impact the company`s reputation.

Fortunately, depending on the payment processor, you may not have to overdo it – many processing companies bear most of the security burden. However, some processors have fewer security features, so it`s important to know how to keep online payments safe. Tokenization is an additional layer of security that protects customers` payment data. The tokenization offered by some payment processors occurs when a program converts payment data into a random sequence of numbers. Secure processing of online transactions and payments is essential to prevent fraudulent payments and data breaches. Fraud, in particular, can end up costing you a lot of money in chargeback fees. And data breaches can be a total PR disaster, leading to customer distrust. The best security measure is to keep track of the transactions you have made. To do this easily, use a single credit card or payment method for all online transactions and do not use that card or payment method for anything else. Make sure you have scam insurance on this card and check your bank statements with any online purchases you`ve made. You can then easily find irregularities. – Afshin Doust, Advanced Intelligent Systems Inc.

Out-of-band authorization: In this approach, the verifying party (usually a bank) notifies the authorizing party (the payer) of a transaction. The authorized party is required to approve or decline payment through a secure out-of-band channel (e.g., mail or telephone). This is the current approach for credit cards with shipping and phone orders: anyone who knows a user`s credit card details can initiate transactions, and the legitimate user must check the statement and actively complain about unauthorized transactions. If the user does not complain within a certain period of time (usually 90 days), the transaction is considered “approved” by default. Since I`ve been traveling to India right now, I understand the value of one-time passwords. It used to be boring, but it`s a safety factor we all have to stick to. Our security is important when two- to three-factor authentication is implemented. We have to live with it for our safety. – Bhavna Juneja, Infinity, a technology company in Stamford With the modern processing landscape full of vendors offering cutting-edge security tools, there`s no reason why you shouldn`t sell your products safely. It`s just a matter of finding the right processor. Encryption is the process of converting electronic data into an encrypted message that only the recipient and sender can understand, and it is not accessible to other third parties without the encryption key. Merchants need a payment gateway that detects and manages fraud.

Integrated fraud monitoring identifies instances where there is a real risk of fraudulent purchases. Depending on their circumstances and risk tolerance, companies can establish rules that restrict or reject transactions deemed too risky or require manual approval before a transaction is completed. Online payment security is about protecting your business and your customers` personal information. This article describes the main security procedures for processing electronic payments. To protect their customers and business while providing an exceptional checkout experience, merchants need to understand online security best practices when accepting credit card payments and alternative payment methods. Most processing providers offer some sort of SSL-certified online payment gateway. Only if you have created your own website, you need to make sure that your website is protected. Password authorization: A password-protected transaction requires that each message from the authorizing party contain a cryptographic verification value.

The audit value is calculated using a secret key known only to the parties authorizing and verifying.

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