When it comes to online payment methods, ecommerce merchants today have many possibilities. Because of this, we’ll examine my recommended approaches to receiving payments online in this article.
The importance of security in online payments
What dangers exist? The main cause of the ongoing argument over what exactly qualifies as a secure online payment is security failures.
However, as reports of compromised accounts, identity theft, data breaches, and card fraud have become more common in today’s media environment. Retailers and payment processors have increased the security of their digital environments.
Directive to ensure the safety of internet payments
There are a number of rules you should abide by if you’re operating as an online merchant in any of the international marketplaces to maintain the security of online payments.
Standards for Payment Card Security
One such law, enforced by credit card networks like Visa or Mastercard, is the PCI DSS.
This standard imposes 12 broad data security requirements. With the goal of establishing a secure infrastructure for businesses who want to accept credit cards.
Depending on the quantity of annual online transaction processing, there are four degrees of PCI compliance.
Read our advice on how to acquire PCI compliance if your online store is not yet compliant with the PCI DSS.
Data Protection Regulations
To secure consumers’ personal and financial information, new data protection regulations have also introduced unique standards that merchants and payment processors must adhere to.
It is envisaged that the privacy requirements will ultimately reinforce a more secure arrangement for transactions of data and money.
Notwithstanding concerns from merchants about the extra costs of aligning their operations to be compliant or regarding payment difficulties with high risk merchant account.
If you’re an online consumer purchasing in this market. Your payment will likely confirm at least two of these three layers of security.
Knowledge (something the consumer possesses, such as a Smartphone or a token), possession (something the consumer possesses, such as a PIN or password), and inherence (something the shopper is, a fingerprint or face recognition).
Additionally, 3D Secure version 2, a modification to the first 3D Secure flows, was mandated by PSD2 for card-not-present transactions.
An overview of online payment options
Here are a few definitions linked to online payment systems that you should be aware of before continuing.
- Customers can pay for utilities, mortgage loans, and other forms of invoices through ACH payments, which are electronic credit and debit transactions. The majority of payment processors provide their customers with ACH payment alternatives, particularly for monthly and subscription-based transactions. ACH stands for Automated Clearing House. The majority of payment systems transmit money to their consumers using ACH (net of fees).
- A bank account known as a merchant account enables a client to accept payments made with credit or debit cards. Regulations set out by card associations must be followed by merchant suppliers. There are many processors that serve as both the merchant account and the payment gateway.
- A payment gateway enables businesses to securely transmit credit card data between themselves and their customers as well as between themselves and the payment processor. The merchant’s sponsoring bank and the payment gateway are connected through the payment gateway.
- When a merchant or payment gateway configures their payment environment to comply with the Payment Card Industry Data Security Standard, they are said to be in PCI compliance (PCI DSS). The Payment Card Industry Security Standards Council developed the PCI DSS standard to improve cardholder data security and lower fraud.
Which internet transactions are safe?
Despite the payments industry’s constant optimization, parties to an online transaction could nevertheless be plagued by security concerns:
Paypal security GooglePay security What method of internet payment is the safest? It might be really difficult to understand how to securely pay online.
Let’s review the most widely used payment methods in eCommerce today and assess how secure they are.
Cards are among the safest payment options available online. Because their use is governed by payment compliance requirements, such the previously mentioned 3D secure flows.
Since the money used for the transaction is provided by the issuing bank, using credit cards in particular carries significantly lower risks for consumers.
Debit card use for online buying is protected by 3DS standards as well. Thus one-time passwords are used for purchase authentication and are delivered through message or email.
Another aspect that makes cards safe for online payments is the clause in these programs that states cardholders are not liable for fraudulent charges.
Online shoppers without a credit card can use third-party services like eWallets to act as a middleman in the transaction.
Users can choose between pass through wallets like GooglePay or ApplePay. Or stage wallets like the well-known PayPal, a market leader in online money transfers since its 2002 introduction.
Because they don’t share the customer’s payment information, these services are typically secure by default (bank account information).
This means that the user only uses the account information for the third-party service. And that each transaction involves the exchange of special random codes. Rather than disclosing their card information to the websites where they shop.
Many of these services also come with buyer protection or payback policies, which further increase the security of the user’s payment and transaction information.
For customers paying recurrent amounts, direct debits are an option; money is automatically taken out of their bank accounts.
Since numerous security measures and verifications are implemented during the setup/authorization stage. Direct debit is generally regarded as a secure online payment option.
Regulations may increase the security of direct debits in various jurisdictions.
For instance, according to EU payment legislation, a customer may ask for a direct debit refund for a contract that was ended within eight weeks of the termination date.
Create a payment gateway for an online casino using PayCly
Making a merchant account on the website of the e-wallet service is the first step in integrating PayCly as a international payment gateway for your online business.