6 Online Payment Security Tips For Businesses

As e-commerce grows (and grows and grows…) so does the need to enhance payment security. A stable and secure payment system is an absolute must for online buyers and sellers alike and making customers comfortable with sharing credit card information and other personal data is job one.

Creating a payment infrastructure that customers trust is as important as any other element of an e-commerce site. The responsibilities that come with handling credit card data mean that security features will have just as much influence on your success as your site's design or product offering. The idea of "user experience" is a standard part of the conversation about e-commerce sites but so is the idea of "payment experience", which is focused on the trust you must build in order to persuade customers to stay, shop and buy.  

Building a secure payment experience requires planning and attention but there are proven ways to stay a step ahead of bad actors and maintain a solid security posture that lets your customers pay with confidence.

Here are six tips for online businesses that will help strengthen payment security, safeguard sensitive data and provide a great overall experience.

1. Use a Secure Payment Gateway

Payment gateways like PayPal and Stripe are well-established in online commerce because they meet the highest security standards. Their advanced network security, which ensures safe digital transactions, is confirmed by their Payment Card Industry Data Security Standard (PCI-DSS) certification, which requires compliance in twelve key areas.

It's the gold standard for accepting payments online, provides the ultimate layer of security and is the basis for safe credit card transactions.

PCI-DSS certification is not a one-time event but an ongoing commitment that involves constant review and improvement. Any entity that processes, stores, or transmits cardholder data must adhere to PCI-DSS requirements regarding maintaining a secure network, protecting stored cardholder data, safeguarding against malware, regularly testing security systems and processes and more. It addresses security vulnerabilities so vendors can concentrate on what they do best.

There is no grey area here - PCI-DSS-compliant payment processor is the foundation of a robust payment security strategy.

2. Implement SSL Certificates for Secure Online Payments

SSL (Secure Sockets Layer) certificates encrypt the data transmitted between your website and users, including when they make a payment. This ensures that sensitive information, such as credit card details, cannot be intercepted by malicious actors. Customers look for the padlock symbol in the URL bar, signaling a secure connection, as a sign of the use of procedures that address payment security.

SSL certificates are like digital passports for websites  They authenticate a website's identity and enable an encrypted connection between a web server and a web browser. This ensures that any data transmitted between the two remains private and secure.

Implementing SSL certificates provides a significant boost to these areas:

• Encryption: SSL certificates enable the encryption of data transmitted between a user's browser and a website's server. This prevents eavesdropping and tampering, protecting sensitive information like login credentials, credit card details, and personal data, thus minimizing the chances of a security breach.
• Authentication: SSL certificates verify the identity of a website. This assures users that they are interacting with the genuine website and not a malicious imposter intent on some kind of payment fraud.
• Trust: The presence of an SSL certificate, indicated by the padlock icon and "https" in the browser's address bar, builds trust and confidence among users. It's an extra layer of security that signals that the site protects user information.
• Compliance: Many industry regulations and data protection laws, such as PCI DSS and GDPR, require the use of SSL certificates to protect sensitive information and to force online sellers to enhance their payment security.

In addition, SSL certificates enhance your SEO visibility because search engines like Google prioritize websites with SSL certificates, giving them a higher ranking in search results.

Increased security, higher customer trust AND more site traffic? What’s not to like?

3. Have a Strong Password Policy to Combat Security Threats

Yes, it’s true — too many of your customers still use a password like “password123”. As funny as this might be (what year is it again?), it’s a serious matter when it comes to the effectiveness of your payment security, data protection and defending against cyberattacks. Weak passwords are still a common entry point for the bad guys but fortunately it’s easy to gently force customers to slam this digital door shut.

Enforcing a strong password policy is easy:

• Require a combination of uppercase, lowercase, numbers, and symbols
• Mandate regular password updates or confirmations
• Discourage the reuse of passwords across multiple platforms

Try to briefly explain to your customers why you’re asking them to create a strong password by framing it as being in their interests when it comes to online payment security. Remind them that it's part of your set of security standards that ensure a safe buying experience and you’re just asking them to share a small part of the job of protecting their payment data.

Customers won't mind complying with your password policy if they understand that it means they can make a secure credit card payment.

4. Use Tokenization to Safeguard Online Transactions

Tokenization in e-commerce payments is a security process that replaces sensitive payment information, such as credit card numbers, with a unique, randomly generated identifier or "token." This token can be used to process payments without exposing the original sensitive data, thus reducing the risk of fraud and data breaches.

Tokenization is a great way to protect your payment and it makes things like digital wallets, automatic recurring payments, one-click checkouts and other conveniences safe and secure.

Here's how it works in e-commerce payments:

• Customer initiates payment: The customer enters their payment details (e.g., credit card information) during checkout.
• Token is created: The payment processor or tokenization service generates a unique token to represent the sensitive card details.
• Token is stored: The token is stored in the e-commerce platform’s database instead of the actual card information.
• Payment is processed: When the payment is processed, the token is mapped back to the original card details and the transaction is securely completed.
• Tokens are reused as needed: Tokens can often be reused for recurring transactions or stored securely for future purchases, enhancing customer convenience.

Tokenization delivers several benefits for both online buyers and sellers:

[fs-toc-omit] Enhanced Payment Security

• The original card details are not stored on the e-commerce platform, reducing the risk of data theft in case of a breach.
• Tokens are meaningless if intercepted, as they cannot be reverse-engineered to retrieve card details.

[fs-toc-omit] Compliance with Regulations and Best Practices

• Tokenization helps businesses comply with standards like PCI DSS (Payment Card Industry Data Security Standard), which mandates the secure handling of cardholder data.

[fs-toc-omit] Facilitates Secure Recurring Payment Method

• E-commerce businesses that offer subscriptions or recurring payment services use tokens to charge customers securely without re-entering card details, which streamlines the customer experience.

[fs-toc-omit] Reduces Impact of Breaches in the Payment Process

• Even in the event of a security breach or other incident, the tokens are useless without access to the payment processor's system.

5. Let Customers Know How You're Ensuring Payment Security

Let customers know that your site is actively protected by any third-party tools or security controls you may be using. This might include displaying the logos of security providers (e.g., Norton Secured, McAfee Secure) on checkout pages or compliance badges for PCI-DSS and other relevant certifications.

You can also explain the steps you’ve taken to safeguard sensitive data and protect payment information for anyone who wants to read it in more detail. Being transparent about the measures you use, including any on this list, has some obvious benefits:

• It builds trust with customers. A clear, detailed privacy policy demonstrates that the platform values user privacy and is committed to protecting it. Customers are more likely to trust a platform that openly explains how their personal information is collected, used, stored, and shared.
• Regulatory / Compliance issues. Many jurisdictions require businesses to provide a privacy policy under laws like GDPR (General Data Protection Regulation) in the EU, CCPA (California Consumer Privacy Act) in the US, PIPEDA (Personal Information Protection and Electronic Documents Act) in Canada and more. Explaining the policy ensures the platform meets these regulatory requirements and avoids legal penalties. Don’t forget that these legal compliance issues don’t need a huge dedicated department to organize and you can always keep your compliance documentation up to dated with Easylegal.
• It enhances the user experience. Users who understand what data is being collected and why are less likely to feel uncomfortable or surprised by the platform's practices. This transparency can improve overall customer satisfaction and loyalty.

On top of all this, you might be surprised at the number of customers who actively seek out an online retailer's privacy policy or information about the types of payment security measures used to protect sensitive data like credit card information. Today's online consumer wants to know about payment security and how their data is used and stored. Exceed their expectations by sharing the detailed information they’re looking for!

6. Audit Your Payment Security Strategy and Update Regularly

Nothing stands still in the digital world and bad actors are often on the cutting edge of change, creating new threats that have to be answered. Online retailers are in a constant state of having to improve payment security.

That’s one reason why regular security audits and updates are a must. By conducting regular penetration testing and vulnerability scans of your current payment infrastructure, you can identify weak points, potential targets and areas in need of further protection. Addressing any vulnerabilities in your payment system should immediately become your top priority.

The updates and patches that bring everything up to date and keep your security posture strong do more than limit your exposure to cyberattacks and enable secure payment processing. These same regular self-checks are an opportunity to conduct routine maintenance and implement measures that boost your site’s overall performance:

• Security checks are part of compliance with applicable regulations regarding the storage of personal data.
• Keeping software, plugins and systems up-to-date reduces the risk of breaches due to outdated technology.
• Audits identify issues like broken links, slow-loading pages or checkout errors that can frustrate users and reduce conversions.
• Regular updates allow you to integrate new features and functionalities that improve customer experience, such as advanced search options or personalized recommendations.
• Regular updates ensure compliance with the latest SEO guidelines, keeping the site visible in search engine rankings.
• Auditing for performance issues ensures faster page loads, which are critical for SEO and user retention.

Every e-commerce site is a constant work in progress, so make cybersecurity part of the regular check-ups and security patches they need to stay in perfect working order.

Reassure Customers Concerned About Payment Security

Payment security is a complex matter but online businesses are based on customer trust. By implementing these payment security tips, you will enhance customer confidence in your brand and allow them to buy from you with confidence. Prioritizing security is not just a technical necessity, it’s a business imperative in the digital age.

Creating an online environment where customers feel comfortable sharing their sensitive data is the first step for any successful online business.

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