Digital payments system has grown increasingly over the last decades due to the growing spread of Internet-based banking and shopping. With the development of technology, the electronic payment systems, and payment processing devices are also advancing. As these rises, it becomes important to provide ever more secure online payment systems. Security should always be the first priority when operating online. Customers are more and more cautious about data breaches and concerned about their payment system being compromised.
Tokenization is an increasingly popular technique among credit card processing companies because of increased security and cost-effectiveness relative to encryption. Tokenization replaces actual credit card details with numerical sequences to represent the card, then used in authorization and other payment processes. It becomes even valuable when developing a trusted relationship with customers. They can facilitate the stored payment data with the future purchase. Tokenization combined with the point to point encryption brings a comprehensive solution for data breaches.
Card data security and fraud prevention should be the top considerations when selecting an online payment system for business. Payment processors can scan patterns of card use and other behavioral trends to detect the occurrence of any fraud. This feature also allows to proactively refund customers for charges that are likely to be fraudulent, hence reducing burden and cost of chargeback procedures.
Hosted checkouts or pay pages can remove all card data from associating with or entering online payment systems. It can also reduce the Payment Card Industry(PCI) data breaches. Adherence to PCI data security standards is also vital.
Address Verification System(AVS) can best prevent online fraud by checking the validity of a billing address against the cardholder's data from the issuing bank. This verification procedure prevents allowing any online fraud.
Cybercriminals have moved their operations online because of the anonymity of online world. So there is a high chance of falling prey to various kinds of online fraud. The deployment of the above practices can help reduce the chance of becoming a victim of data breaches and online fraud.