Did you know how immensely the financial industry has evolved due to the growth of technology? It has paved the way for a huge number of businesses, especially the top-tier ones. It allows them to cater to a wide range of customers. While technological growth has had a positive impact, there are also a few things to give a thought about on the other hand.
Digital security, especially in terms of financial data, is one of the hurdles to tackle. A recent report issued in May 2024 by the Indian Cyber Crime Coordination Centre recorded 7,000 complaints daily. Therefore, having a reliable payment gateway is the key to continuing to cater to your customers with the same prestige.
Today, let’s examine the top security features of a payment gateway that you must consider before adopting one.
Is Third-Party Validation a Top Security Feature?
Third-party validation is a critical aspect of enhancing payment gateway security. It involves an external, authoritative organisation independently assessing and certifying a payment gateway’s security protocols. Here are a few benefits of having a third-party validation feature in your payment gateway:
- Independent Assessment: Third-party validation involves an external, authoritative organisation evaluating a payment gateway’s security protocols unbiasedly.
- Rigorous Testing: This includes thorough testing of security features such as encryption methods, data protection mechanisms, and compliance with top industry standards, including PCI DSS.
- Identification of Vulnerabilities: This process helps uncover security weaknesses that might be missed by internal teams, providing a comprehensive assessment of the gateway’s security.
- Adherence to Industry Standards: Validation ensures that the gateway has the highest security standards and protects sensitive financial data from cyber threats.
- Enhanced Customer Trust: Using a third-party validated payment gateway assures customers that their transactions are secure, building trust and loyalty.
- Regulatory Compliance: Third-party validation helps businesses comply with regulatory requirements. It also reduces legal and financial penalties risk.
Other Top Features of a Secure Payment Gateway
A secure payment gateway is not just a nice-to-have feature but a necessity. It ensures that customers’ financial information is encrypted and safe from potential breaches, thereby maintaining the business’s trust and credibility.
Here are some of the top features to consider:
1. Encryption and Data Protection
One of the fundamental security features of a payment gateway is encryption. It is basically the process of converting sensitive information into a secure code, preventing unauthorised access. Upon entering customer payment details, the gateway encrypts this data before transmitting it to the bank.
This ensures that even if the data is intercepted, malicious entities cannot read or use it. Payment gateways typically encrypt data using SSL (Secure Socket Layer) or TLS (Transport Layer Security) protocols.
2. PCI DSS Compliance
As a premium business, you must consider the PCI DSS (Payment Card Industry Data Security Standard) while adopting a payment gateway. These standards are designed to protect your customer’s information during and after a financial transaction.
In fact, complying with PCI DSS is mandatory for every business handling credit or debit card payments. A PCI DSS-compliant payment gateway ensures that your business meets the highest security standards for processing card transactions.
3. Tokenisation
Tokenisation is another crucial security feature offered by payment gateways. The process of tokenisation replaces sensitive payment information with a unique identifier called a token. The token is used to process the transaction without exposing the actual payment details.
Since tokens are randomly generated and have no intrinsic value, they are useless if intercepted by cybercriminals. Tokenisation adds an extra layer of security, making it much more difficult for hackers to access sensitive payment information.
4. Two-step Authentication
Another payment gateway security measure to consider is two-factor authentication (2FA). It requires every user to confirm their identity using two different methods. Usually, this involves something the user knows (like a password).
The other authentication step involves verification through an OTP shared on a registered mobile number or email. The customer must then enter this OTP to complete the transaction. By incorporating 2FA, payment gateways can significantly reduce the risk of unauthorised transactions.
5. Fraud Detection and Prevention
A reliable payment gateway will have in-built fraud detection and prevention mechanisms that function using advanced technology. These tools monitor transactions in real-time, flagging any suspicious activity that may indicate fraudulent behaviour.
For example, suppose a transaction originates from an unusual location or deviates from the customer’s typical spending pattern. In that case, the payment gateway can hold the transaction for further verification or block it entirely.
6. Address Verification Service (AVS)
The Address Verification Service (AVS) is a security feature that helps prevent card-not-present (CNP) fraud, which occurs when transactions are made without a physical card. AVS verifies the billing address entered by the customer during the payment process against the address on file with the card issuer.
If the addresses do not match, the payment gateway can flag the transaction for review or decline it altogether. AVS adds an extra layer of security, making it more difficult for fraudsters to use stolen card information.
Ensure Your Business’s Financial Security Today!
The security of a payment gateway is one of the most essential aspects for a business to position itself in the premium category. With cybercrime on the rise and financial transactions becoming increasingly complex, you can partner with some of the industry’s leading payment gateway solutions providers, like Plural by Pine Labs.
Their services prioritise the security features of their payment gateways. From encryption and PCI DSS compliance to fraud detection and chargeback management, these features safeguard sensitive financial data and help maintain customer trust.
Connect with Plural for more information today!