Is Your Payment Gateway Safe? 5 Best Ways to Know

Payment Gateway

One of the surest signs of having a secured payment gateway is the use of fraud prevention tools. These must be offered with the payment gateway plan. Some of these would include PCI level 1, data encryption, EMV 3DS 2.0 compliance, risk-based authentication, and an extra layer of protection for sensitive data. 

It goes without saying that customers need to be extra careful and responsible, too, when buying anything online. Of course, high-risk merchants would need to be smart enough to select the right payment gateway to ensure that there is no data theft. With that being said, here’s outlining a few factors that ensure a payment gateway is reliable and secure.

1. Check for PCI-DSS Compliance in the Payment Gateway Provider 

The PCI DSS (Payment Card Industry Data Security Standard) is absolutely non-negotiable when it comes to processing payments through a website or app. The set of rules laid down by the PCI DSS helps merchants secure payment gateways to protect their customers.

The set of rules from the PCI DSS are meant to ensure that all companies that process, transmit, and store credit card details maintain a secure environment. It is an independent body created by Discover, Visa, American Express, MasterCard, and JCB. The PCI Security Standards Council (PCI SSC) administers and manages the PCI DSS.

Even if a business owner does not have a fair idea about being PCI-compliant, they should at least know about the reasons to use it. Also, choosing a payment gateway provider that isn’t even PCI level 1 compliant puts the business at risk of paying non-compliance charges.

2. Offering Risk-Based Authentication for the Businesses

An advanced feature offered by popular payment gateway providers is risk-based authentication. The fact remains that fraud has become more sophisticated now than ever before. As such, account takeover has become a significant issue plaguing businesses and customers. 

An account takeover refers to the dreadful scenario where the fraudsters use the credentials of cardholders to carry out unauthorised transactions. Payment gateway providers are using rules-based and statistical models to outline high-risk transactions.

Businesses can employ dynamic techniques to combat fraudulent activities and be more proactive in detecting suspicious patterns. Furthermore, they can flag high-risk transactions for offline follow-up and decline them online. This feature is far more secure than a better-be-safe-than-sorry scenario as the data points and technology used are far superior in mitigating false alarms. 

3. The Availability of the 3D Secure™ Authentication

The most basic security features aren’t always enough; more businesses are turning to 3D Secure™ authentication. The aim is to offer an extra layer of security against fraud in both debit and credit card transactions. The tool provides a secure password from the credit card of a consumer to make sure that each transaction is legitimate. For an extra layer of fraud protection, 3D Secure needs customers to complete an added verification step with the card issuer.

Top names in the world of payment gateway have gone a step ahead and embraced 3D Secure 2.0. Experts are calling 3DS 2.0 the future of digital payment solutions. With customers moving to IoT and smartphones, it becomes challenging and critical to authenticate their identities.

In the 3D secure protocol, merchants can send multiple transactions attributes that the issuer can utilise to accurately authenticate their customers. 

4. Ensuring Two-Factor Authentication for Greater Security

Two-factor authentication, also known as dual-factor or two-step verification, is a secure process offered by most gateway providers these days. In this process, the users provide two different authentication factors to verify themselves. For instance, it can be advanced device ID and SIM ID authentication through a simple mobile app.

The process aims at protecting the credentials of the user and the resources they are about to access. In addition to that, two-factor authentication offers better security than single-factor authentication. In the latter, the user has to provide only a single factor, which is usually a password.

Thus, even if the attackers try their ways, they will have to pass through two layers of security. This helps in thwarting attacks in most cases.

5. The Good Old Password and Their Use for Security

Modern payment gateway solution providers offer businesses to choose a one-time password (OTP) or static password for regular shoppers. It helps prevent access breaches even after an attacker gains a valid set of credentials to log in. Of course, one of the foremost benefits of the OTP is the fact that it is easy to adopt for businesses.

The Final Call

The right payment gateway solution needs to tick several boxes, and this guide can help businesses understand what they must look for when purchasing one. And if you are looking for a payment gateway provider that can offer everything mentioned above, get in touch with the right payment gateway companies who ensure safe and secure transactions every single time.