Category: Payment Encryption

Key Regulations Shaping the Digital Payments Landscape in India

Posted on | by Shubham

India has undergone a remarkable shift in its payment systems, with digital transactions becoming increasingly prevalent over the past decade. To ensure this growth remains secure, inclusive, and sustainable, the government and regulatory bodies have implemented essential policies and frameworks. These rules play a pivotal role in shaping the digital payments ecosystem, influencing user behavior, and driving technological advancements. Below is a detailed look at the key regulations defining India’s digital payments landscape.

Payment and Settlement Systems Act, 2007 (PSS Act)

The Payment and Settlement Systems Act, 2007, provides the legal foundation for regulating payment systems in India. This legislation grants the Reserve Bank of India (RBI) the authority to oversee and manage these systems, ensuring they operate securely, efficiently, and inclusively. Highlights of the PSS Act include:

Granting RBI the power to authorize payment systems, ensuring adherence to operational standards.

Legitimizing electronic payment systems, thereby boosting public confidence in digital transactions.

Offering provisions for monitoring and resolving disputes within payment systems to address grievances effectively.

This legislation forms the cornerstone of India’s digital payments framework, building trust among users and businesses.

Reserve Bank of India’s Role in Payment Regulations

The RBI plays a critical role in establishing and enforcing policies for digital payments. Some of its notable initiatives include:

Vision Document for Payment Systems

The RBI periodically releases a Vision Document that outlines strategic objectives for advancing digital payments. Key elements of the latest document include:

Encouraging innovation in payment solutions to enhance user adoption and convenience.

Strengthening fraud prevention measures to safeguard users and institutions.

Promoting system interoperability to create a seamless payment experience.

Guidelines on Prepaid Payment Instruments (PPIs)

Prepaid Payment Instruments, such as mobile wallets, are subject to specific regulations to ensure user protection and operational efficiency. These guidelines include:

Licensing protocols for PPI providers to guarantee compliance and reliability.

Defining transaction limits to mitigate potential risks.

Implementing stringent KYC (Know Your Customer) requirements to prevent misuse and ensure accountability.

Unified Payments Interface (UPI) Framework

Developed by the National Payments Corporation of India (NPCI), the Unified Payments Interface has revolutionized instant money transfers. Its regulatory framework ensures:

Compatibility between banks and payment applications, offering users greater flexibility.

Minimal transaction costs to encourage adoption across diverse demographics.

Advanced security measures to protect against fraud and unauthorized access.

UPI’s robust framework has positioned it as one of the most widely used digital payment systems in India, handling billions of transactions monthly.

Data Protection and Privacy Regulations

The surge in digital transactions has heightened concerns about data security and user privacy. Key regulations addressing these issues include:

Personal Data Protection Bill (PDPB)

Though yet to be enacted, the PDPB aims to protect user data through measures such as:

Mandating localized storage of sensitive financial data to enhance security.

Clearly defining the responsibilities of data processors and custodians to ensure accountability.

Empowering users with control over their data to promote transparency and trust.

RBI’s Data Storage Guidelines

To enhance data security, the RBI mandates that all payment-related data be stored within India. This regulation aims to:

Facilitate access for law enforcement during investigations.

Strengthen protections against breaches and other security threats.

Prevention of Money Laundering Act (PMLA), 2002

To combat financial crimes, digital payment providers must comply with the Prevention of Money Laundering Act. Provisions include:

Enforcing stringent KYC protocols to verify user identities and minimize fraudulent activities.

Reporting suspicious transactions to regulatory bodies for further investigation.

Maintaining detailed records of transactions to ensure traceability and adherence to compliance standards.

Goods and Services Tax (GST) on Digital Payments

Digital payment services are subject to GST, affecting both providers and users. The framework ensures:

Transparent taxation to discourage evasion and maintain fairness.

Compliance with indirect tax laws by payment companies to uphold legal standards.

Financial Inclusion and Payment System Access

To promote greater financial inclusion, regulators have implemented several initiatives, including:

Jan Dhan Accounts: Providing low-cost digital transaction options for underbanked populations, ensuring broader access to financial services.

Direct Benefit Transfers (DBTs): Utilizing digital platforms to disburse subsidies and benefits directly to recipients, reducing inefficiencies and leakages.

Consumer Protection Regulations

Ensuring user safety and addressing grievances are top priorities for regulators. Measures include:

Requiring two-factor authentication for online payments to enhance security.

Establishing ombudsman schemes to resolve digital payment-related complaints.

Improving transparency in service terms to foster trust among users.

Cybersecurity Guidelines

To protect the integrity of the digital payments ecosystem, the RBI and NPCI have implemented rigorous cybersecurity standards, including:

Conducting regular system audits to identify vulnerabilities and address them proactively.

Enforcing encryption protocols to ensure the confidentiality of transmitted data.

Prompt reporting of cyber incidents to facilitate swift responses and minimize damages.

Innovations and Sandbox Regulations

To encourage innovation, the RBI has introduced a regulatory sandbox for fintech firms. This initiative allows:

Controlled testing of new payment technologies to evaluate their practicality and effectiveness.

Collaboration between startups and regulators to address policy gaps and improve the ecosystem.

Conclusion

India’s regulatory framework for digital payments is designed to balance rapid growth with security and inclusivity. By adhering to these rules, businesses can build consumer trust and promote the widespread adoption of digital transactions. As the digital landscape continues to evolve, close collaboration between the government, regulators, and industry stakeholders will be vital in shaping a robust and innovative payment ecosystem.

online payment

Payment Security For Online Transactions – Online Payment

Posted on | by dpgadmin | Leave a Comment on Payment Security For Online Transactions – Online Payment

 

In today’s digital age, online communication has become an integral part of our daily lives. Whether we shop online, pay bills, or transfer money, the convenience of online payments is undeniable. But along with this relief comes the need for stronger payment security measures to protect our sensitive financial information from falling into the wrong hands. In this article, we explore the importance of payment protection for online transactions, and measures taken to ensure the safety of our money and personal data.

First of all, encryption plays an important role in protecting online transactions. When you pay online, sensitive information such as credit card details or bank account numbers is encrypted using advanced cryptographic algorithms. Encryption turns information into code that can only be deciphered by authorized people, making it extremely difficult for hackers to intercept and misuse your data.

Two-factor authentication (2FA) has gained popularity to further enhance payment security. 2FA adds additional security by requiring users to provide two sets of identifications before completing a transaction. Typically, this involves entering a password or PIN, followed by a unique verification code on your mobile device. With 2FA, even if a hacker manages to get your password, they will need to physically access your mobile device to complete the transaction.

Another important aspect of payment security is the Payment Card Industry Data Security Standard (PCI DSS). These security standards ensure that organizations handling credit card transactions maintain a secure environment. PCI DSS compliance includes implementing measures such as ensuring secure connections, regularly monitoring and testing systems, and limiting access to cardholder data By complying with these standards businesses can significantly reduce the risk of a cardholder data breach and protect their customers’ financial information.

Additionally, tokenization has proven to be an effective way to increase payment security. Tokenization replaces sensitive payment information with a unique identifier called a token. This token is useless for anyone to cancel and can only be decrypted by the payment processor. With tokenization, even if the hacker managed to get hold of the token, it would not be able to be reversed to obtain the original payment information, providing additional security.

Also, Secure Sockets Layer (SSL) and Transport Layer Security (TLS) protocols are used to establish a secure connection between your device and the website or service you use SSL and TLS protocols to encrypt data exchanged between your machine and server and ensure that it remains confidential in messages. Websites and online payment gateways that use SSL and TLS can be marked with a padlock icon, which means you have a secure connection.

Regular security updates and patches are necessary to maintain payment security. A cybercriminal can use vulnerable software to obtain sensitive information without his permission. By quickly deploying security updates and patches, organizations can close these vulnerabilities and protect their systems from potential threats.

Finally, it is important for individuals to implement good cybersecurity practices to ensure that payments are made. This includes using strong and unique passwords, avoiding suspicious links or attachments in emails, and regularly monitoring your financial accounts for any unauthorized activity.

In conclusion, payment security is of utmost importance in online transactions. Encryption, two-factor processing, PCI DSS compliance, tokenization, SSL/TLS protocols, regular security updates, and personal cybersecurity practices are all key components of a comprehensive payment security program If implementing these policies, businesses, and individuals protect sensitive financial information, fraud risks are reduced, and trust in the digital payments ecosystem is enhanced.

 

 

 

 

E-commerce

The Importance Of Security In Payment Gateways: What You Need To Know.

Posted on | by dpgadmin | Leave a Comment on The Importance Of Security In Payment Gateways: What You Need To Know.

In today’s digital age, payment gateways have become an essential part of our lives. With the rise of e-commerce and online transactions, payment gateways have made it easier for people to buy and sell goods and services without the need for cash or checks. However, with the convenience that payment gateways provide comes the risk of security breaches and fraud. Therefore, it’s crucial to understand the importance of security in payment gateways and what you need to know to protect yourself.

What is a payment gateway?

A payment gateway is a technology that connects e-commerce websites and mobile applications to a payment processing network, which enables online transactions. Payment gateways enable customers to purchase goods and services with their credit or debit cards, e-wallets, and other payment methods. Payment gateways are responsible for processing and verifying transactions, checking for fraud, and transferring funds between the merchant’s account and the customer’s account.

Why is a security essential in payment gateways?

Security is a top priority when it comes to payment gateways. Payment gateways handle sensitive information such as credit card numbers, personal identification numbers (PINs), and account details, which can be vulnerable to security breaches and fraud. A security breach in a payment gateway can result in identity theft, financial loss, and damage to the merchant’s reputation. Therefore, it’s essential to ensure that payment gateways are secure and comply with industry standards and regulations.

What are the risks associated with payment gateways?

The risks associated with payment gateways include:

Unauthorized access – Hackers may try to gain access to payment gateways to steal sensitive information, such as credit card numbers, bank account details, and personal information.

Fraudulent transactions – Cybercriminals may use stolen credit card information to make fraudulent transactions. They may also use phishing scams to trick customers into giving away their personal data.

Malware attacks – Malware attacks such as viruses, worms, and Trojans can infect payment gateways and compromise the system’s security.

Human error – Human error, such as accidental deletion of data or misconfiguration of security settings, can also pose a security risk to payment gateways.

How can you ensure the security of payment gateways?

There are several measures that merchants can take to ensure the security of their payment gateways. These include:

Encryption – Payment gateways should use encryption to protect sensitive information such as credit card numbers, passwords, and personal information. Encryption makes the data unreadable to anyone who does not have the decryption key.

Compliance with industry standards – Payment gateways should comply with industry standards such as the Payment Card Industry Data Security Standard (PCI DSS), which sets out guidelines for handling and processing credit card information.

Multi-factor authentication – Multi-factor authentication adds an extra layer of security by requiring customers to provide additional information, such as a password and a one-time code sent via SMS or email, to complete a transaction.

Regular security audits – Payment gateways should undergo regular security audits to identify and address vulnerabilities and ensure compliance with industry standards.

Secure network – Payment gateways should use a secure network to prevent unauthorized access and ensure the confidentiality and integrity of data.

Conclusion

In conclusion, payment gateways have revolutionized the way we do business online. They have made it easier for people to buy and sell goods and services, but they also come with risks. Security is essential in payment gateways to protect sensitive information from unauthorized access and fraud. Merchants must ensure that their payment gateways are secure and comply with industry standards and regulations. By implementing measures such as encryption, multi-factor authentication, regular security audits, and a secure network, merchants can ensure the security of their payment gateways and protect their customers’ sensitive information.

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Integrate A Secure Online Payment System Into Your Website

Posted on | by dpgadmin | 4 Comments on Integrate A Secure Online Payment System Into Your Website

As e-commerce continues to grow in popularity, integrating online payment systems into your website has become essential for any business that wants to sell products or services online. However, simply adding a payment gateway to your website is not enough. You need to ensure that the checkout process is smooth, secure, and hassle-free for your customers. In this article, we will provide you with tips for integrating online payment systems into your website and ensuring a smooth and secure checkout process.

Choose the Right Payment Gateway

Before you start integrating a payment system into your website, you need to choose the right payment gateway. There are many different payment gateways available, each with its own features, pricing, and security options. When choosing a payment gateway, consider your business needs, the type of products or services you offer, and the payment methods you want to accept.

Provide Clear Payment Options

When customers visit your website, they should be able to easily identify the payment options available to them. Provide clear instructions on how to complete the payment process, and include a list of accepted payment methods. This will help to reduce confusion and ensure that customers know what to expect when they check out.

Optimize Your Website for Mobile Devices

Online purchases are being made by an increasing number of people using their mobile devices. As a result, it’s important to ensure that your website is optimized for mobile devices. This includes ensuring that your website is responsive and easy to navigate on a mobile device and that the checkout process is streamlined and easy to use.

Use Secure Socket Layer (SSL) Encryption

To ensure the security of your customer’s information, it’s essential to use SSL encryption on your website. SSL encryption protects sensitive information by encrypting data as it is transmitted between the customer’s browser and your server. This ensures that sensitive information such as credit card details, personal information, and login credentials are secure and cannot be intercepted by third parties.

Keep Your Payment System Up to Date

Payment gateways and payment systems are constantly evolving, and it’s essential to keep your payment system up to date to ensure that it remains secure and reliable. This includes ensuring that you are using the latest version of your payment gateway software and that any security updates or patches are applied promptly.

Provide a Clear Return Policy

A clear and concise return policy can help to build trust with your customers and reduce the likelihood of chargebacks. Make sure that your return policy is clearly displayed on your website, and that it outlines your return policy in clear and simple language.

Reduce the Number of Steps Required for Checkout

A long and complicated checkout process can discourage customers from completing their purchases. To ensure a smooth checkout process, minimize the number of steps required to complete a purchase. This includes removing unnecessary fields, simplifying the payment form, and providing clear and concise instructions at each stage of the checkout process.

Use Multi-Factor Authentication

Multi-factor authentication (MFA) is an additional layer of security that requires customers to provide additional information beyond their password to access their account or complete a transaction. MFA can help to prevent fraudulent transactions and reduce the risk of unauthorized access to customer accounts.

Provide Customer Support

Providing excellent customer support is essential for any business that wants to build trust and loyalty with its customers. Make sure that you provide clear and easy-to-find contact information, and that you respond promptly to customer inquiries and support requests.

Test Your Payment System Regularly

Regularly testing your payment system can help to identify any issues or bugs before they become a problem. This includes testing your payment system on different devices and browsers and testing the checkout process from start to finish.

In conclusion, integrating online payment systems into your website is essential for any business that wants to sell products or services online. However, it’s important to ensure that the checkout process is smooth, secure, and hassle-free for your customers. By following the tips outlined above, you can ensure that your payment system is secure and reliable and that your customers have a positive experience when purchasing from your website.

Remember to choose the right payment gateway, provide clear payment options, optimize your website for mobile devices, use SSL encryption, keep your payment system up to date, provide a clear return policy, minimize the number of steps in the checkout process, use multi-factor authentication, provide customer support, and test your payment system regularly. By doing so, you can ensure that your online payment system is integrated seamlessly into your website and that your customers can make purchases with confidence.

How Do Payment Gateways Protect Sensitive Information?

How Do Payment Gateways Protect Sensitive Information?

Posted on | by dpgadmin | Leave a Comment on How Do Payment Gateways Protect Sensitive Information?

Payment gateways are critical components of any online transaction system. They facilitate the secure transfer of sensitive financial information between customers and merchants, protecting both parties from fraud and unauthorized access. In this article, we will explore the various ways in which payment gateways protect sensitive information, including encryption, tokenization, and fraud detection.

Encryption

Encryption is the process of encoding sensitive information in such a way that only authorized parties can read it. Payment gateways use encryption to protect sensitive data such as credit card numbers, bank account details, and personal identification information (PII) from hackers and other unauthorized parties. The most common encryption standard used by payment gateways is Advanced Encryption Standard (AES), which is a symmetric encryption algorithm that uses a single key to encrypt and decrypt data.

When a customer makes a payment through a payment gateway, their sensitive information is encrypted using AES encryption before it is transmitted over the internet. This means that even if a hacker intercepts the data, they will not be able to read it without the encryption key. Payment gateways typically use 256-bit encryption, which is considered to be highly secure and virtually unbreakable.

Tokenization

Tokenization is a technique used by payment gateways to protect sensitive information by replacing it with a unique identifier called a token. The token is then used to represent the original data in all subsequent transactions, reducing the risk of data theft or fraud. For example, when a customer enters their credit card number into a payment gateway, the gateway will replace the number with a token that is stored in its database. The token can then be used to process future transactions, without the need to store the actual credit card number.

Tokenization provides an additional layer of security, as it makes it virtually impossible for hackers to obtain the original data, even if they gain access to the payment gateway’s database. This is because the token cannot be reverse-engineered to obtain the original data.

Fraud Detection

Payment gateways use sophisticated fraud detection algorithms to identify and prevent fraudulent transactions. These algorithms analyze various data points, such as the customer’s location, IP address, transaction history, and purchase behavior, to determine the likelihood of fraud. If a transaction is flagged as suspicious, the payment gateway may request additional verification steps, such as a one-time password (OTP) or two-factor authentication (2FA).

Some payment gateways also use machine learning algorithms to analyze transaction data and detect patterns that may indicate fraud. These algorithms can identify unusual purchase behavior, such as a sudden increase in transaction volume or purchases made from unusual locations. They can also detect fraudulent patterns, such as multiple transactions from the same IP address or multiple failed attempts to use the same credit card number.

Conclusion

In conclusion, payment gateways play a crucial role in protecting sensitive financial information from fraud and unauthorized access. They use a variety of techniques, including encryption, tokenization, and fraud detection, to ensure the security of online transactions. Both customers and merchants need to choose a payment gateway that provides robust security features and complies with industry standards, such as the Payment Card Industry Data Security Standard (PCI DSS). By working together to maintain the security of online transactions, we can create a safer and more secure digital economy for all.

How Do You Know If Your Payment Is Secure On The Internet?

How Do You Know If Your Payment Is Secure On The Internet?

Posted on | by dpgadmin | 3 Comments on How Do You Know If Your Payment Is Secure On The Internet?

E-commerce allows you to buy what you need, without even leaving the comfort of your couch. Practice! Even if more and more people are opting for online purchases daily, the question still arises of the security of payments by bank card on the Internet. Making online purchases is now a reflex for many people. Whether through a computer, a tablet, or a smartphone, however, carrying out an online transaction can expose you to dangers that do not exist in physical commerce.

What is the concrete risk when making a payment by credit card on the Internet? Having your bank details stolen. And then the problems begin: by having access to your bank details, fraudsters can then carry out fraudulent transactions without your knowledge, and you can sometimes take a little time to realize it. Fortunately, there are many reflexes to adopt to reduce the risk of fraud when shopping online.

The art of detecting a secure payment page and spotting a questionable site.

The first thing to do to make a secure online payment is to ensure that the mention ‘HTTPS://’ is present at the beginning of the URL of the payment page. It means that data protection and encryption devices are in place: sensitive data such as your credit card number will be protected and less easily accessible to web hackers.

You should also see a small icon representing a closed padlock, at the top or bottom of the browser, which means that your connection to the site is secure. If the padlock that appears is crossed out or accompanied by a yellow triangle, caution is required: it is better not to make the payment and leave the site.

Good to know: 

Are you asked to enter your card’s pin code? To send your credit card data via a simple contact form or an e-mail? Flee: you are probably on a fraudulent site. No site should ever ask you for more than four elements.

Also, before even accessing the payment page of the site that interests you, you must ensure the seriousness of the online sales site in question. In concrete terms, always beware of overly attractive and very short-lived offers and promotions that appear on your browser: they may be too good to be accurate and, above all, too good to be reliable. It is surely a bad sign if you see prices much lower than those offered by all the other competing sites.

In addition, before confirming a purchase, check that you know at least the site on which you are about to pay. If this is not the case, take the time to read reviews from consumers who may have already purchased this site. If you can’t find any or if these reviews are very negative, it’s better to give up your purchase to play it safe.

The importance of relying on a secure means of payment.

For online purchases, consider the virtual card (or e-credit card), your best for securing your online payments on the Internet.

The virtual card is a service provided by some, which allows you to take advantage of a temporary credit card number, which protects you from possible theft of your data. Concretely, when paying for an online purchase, connect to your bank’s website or mobile application to request a temporary card number for which you define the amount and the period of validity if it offers it. Once the virtual bank card has been generated, pay for your purchase by entering this virtual number in the payment field of the merchant site, instead of your real card number. You do not enter your real credit card data, so no one can intercept them. Your payment is secure, and you are reassured.

Just a point to keep in mind this solution is not always available on e-merchant sites. For example, it is not always possible to use it to book a hotel room or pay for certain transport tickets. This is because the merchants concerned may require the presentation of the card which was used to pay for the reservation to be able to access the room or withdraw the transport tickets. But, overall, apart from these exceptions, the service is available on all sites that offer payment by credit card.

The right reflexes to adopt for ever greater safety.

To make your purchases on the Internet even more secure, certain habits should be integrated into your daily life. First, do not allow e-commerce sites and mobile applications of online sellers to store your banking information.

For the same reasons, do not save your card data in your Internet browser and keep your passwords secure.

In general, avoid making an online payment if you are connected to a public WiFi because a fraudster could use a poorly encrypted internet connection to intercept some of your data. So wait to connect to a private network to complete your transaction.

Finally, to protect yourself against possible hacks, regularly update your anti-virus software and do not disable your firewall when shopping on the Internet. Also, remember to regularly monitor the transactions carried out on your bank account, to quickly identify any payment of an amount or of a nature that does not correspond to your purchases made online.

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How To Secure International Payments For Your Business?

Posted on | by dpgadmin | 4 Comments on How To Secure International Payments For Your Business?

        Do you plan to launch yourself, or are you taking your first steps, internationally? Before importing or exporting, it is essential to secure your international payments. Update on the main means of payment, the regulations to follow, and the tools available.

How To Manage Your International Payments?

Many means of payment exist to manage your international payments, with among the most common SEPA or SWIFT transfers, checks, commercial papers, or documentary credit. It is important to adapt your means of payment according to the amount of the transaction or your activities. The choice of payment method and the deadline is a key element of your commercial offer.

Easy to use, these common means of payment facilitate your transactions. Trade bills give the order to pay a debt and therefore secure your transactions in the event of a commercial dispute (currency law). The international bank check makes it possible to limit unpaid bills because the banking establishment approves the issuance of the check.

Involving the bank in the transaction gives you more assurance. In this, documentary credit or remittance are also two popular forms of payment since they involve the seller’s bank, but also that of the buyer, and their implementation meets uniform rules in all countries.

What Are The Regulations To Follow?

But managing your payments well also involves controlling the exchange risk. To protect yourself from the risks of transactions in different currencies, you must find out about the exchange rates.

In general, depending on the country concerned, certain means of payment may be required and it is essential to ensure local practices. To properly secure your payments, you must therefore know the regulations, your rights, and obligations to respect. Depending on the goods, the regulations vary, and articles of law in the commercial or tax code are provided for this purpose.

What Tools Do You Rely On?

To support you in your procedures, you can approach your bank or expert organizations, or even take specific training in managing your international payments. Some banking establishments offer a support service that ensures the successful completion and settlement of your international commercial contracts by making the connection between the financial and logistics services of your company.

To limit the risks and sustain your operations, also rely on the tools at your disposal, including:

Currency hedging, to hedge your transactions against rate fluctuations.

Payment insurance can cover part of the losses, such as export credit insurance.

Indian Customs can improve and streamline cargo security through the authorization of an Authorized Economic Operator (AEO). This is a voluntary program.

Is Your Data Secure With Payment Gateway?

Is Your Data Secure With Payment Gateway?

Posted on | by dpgadmin | Leave a Comment on Is Your Data Secure With Payment Gateway?

Did you ever imagine that payment gateways in your life would be so omnipresent? Possibly not. And yet, we are here. Today, each time you make a digital payment, you run into a payment gateway. When you pay Rs 100 for food or buy an iPhone worth a lakh from an e-commerce service, you connect with a payment gateway.

Without a doubt, payment gateways made online purchases very convenient. But when they pay online, many customers usually face some sort of anxiety. Even if we believe that the transaction will be safe, when we enter our card or bank details, there is always a doubt at the back of our minds. It’s after all our hard-earned money on the line.

Nevertheless, as digital payments are not going anywhere but up in terms of usage, let’s understand how secure your online transactions are and what exactly a portal of payment is doing with your data.

 

Encryption through PCI-DSS Compliance:

First things first, a payment gateway does not store the data as is. The best payment gateways are PCI-DSS compliant. The PCI Security Standards Council is a global organization that sets security guidelines on all online payment processes for the protection of cardholder data. PCI-DSS is a global online security standard. To you, this ensures that your electronic transactions are encrypted to ensure that there is no interception of data.

In simple words, a payment gateway doesn’t store your sensitive information like name, card number, pin, password & CVV. It only uses it for completing the transaction.

 

HTTPS for High Security:

Data security begins the moment you land on the website. A payment gateway uses the highest SSL certificate authentication, which enables the data to be authenticated by TLS. It might sound a bit tricky, but in simple words, you just have to look for the website. A website with https:// is a secure website.

Today, most e-commerce companies work with secure payment gateways to make sure their customers ‘ data is not compromised. You can also test whether or not the website or payment gateway page is safe by searching for https:/ in the URL, but in addition to understanding how payment gateways provide protection, let’s look at something called tokenization.

 

Tokenization:

While making the payment you enter the 16-digit number. The payment gateway substitutes the 16-digit number with a single token. This token is a set of random characters to replace the 16-digit number of your card. It allows the authentication of payment without revealing sensitive details. Cards are assigned randomly, making the actual card number from the token incredibly difficult to reverse-engineer.

 

 In conclusion, payment gateways and online transactions in today’s world are by and large safer. You can go ahead and digitally transact with proper peace of mind. Only make sure you keep your eyes wide open so you don’t slip into traps.

PCI-DSS

What is PCI DSS Compliance?

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The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to maintain a secure environment for all entities that accept, process, store, or transfer credit card information. The PCI DSS is operated by the PCI SSC, an independent body produced by major brands of payment cards (Visa, MasterCard, American Express, Discover, and JCB)

Compliance with PCI is required to secure and protect online transactions from identity theft. According to the PCI Compliance Security Standard Committee, any merchant that wishes to process, store or transfer credit card data is required to comply with PCI. The PCI DSS refers to any entity that receives, transmits, or retains any cardholder data, regardless of the size or number of transactions.

In short, PCI DSS is a set of regulations created by major brands of payment cards including Visa, MasterCard, American Express, Discover, and JCB. This scheme allows organizations to meet general data security requirements that must be met by each merchant.

 

The following are the security requirements:

Build and Maintain a Secure Network:

To protect cardholder data, install and maintain a firewall configuration. Do not use defaults provided by the vendor for system passwords and other security parameters.

Protection of Card-Holder data:

Protect stored cardholder data. Encrypt cardholder data transmission through open public networks

Maintain a Vulnerability Management Program:

Use or upgrade anti-virus software or system regularly Develop and maintain secure systems and applications

Implement Strong Access Control Measures:

Restrict access to cardholder information by businesses and know how to allocate a unique ID to each person with computer access.

Regularly Monitor and Test Networks:

Track all connections to network resources and cardholder information regularly.

Maintain an Information Security Policy:

Maintain a framework for the protection of information for all workers

Risks that your organization runs by not having PCI DSS compliance:

Businesses that don’t accept any credit cards sometimes question why they need to follow a safety requirement such as the PCI DSS. In the Payment Card Industry (PCI) world, companies that do not process more than 20,000 credit card transactions per year are categorized as level 4 merchants. This level 4 has the lowest level of compliance requirements and therefore requires the lowest level of compliance effort. However, this tier of merchants is also the most vulnerable to crime and cyber-attacks, according to data from the Payment Card Industry. Seventy-one percent of hackers target small businesses and retailers with less than 100 employees, according to the PCI Security Standards Council (PCI, 2016). In addition to the threat of a data breach, agreements with an acquirer or payment processor can require that your company comply with PCI. This is valid for any company that even accepts a single payment credit card.

Benefits of PCI DSS: 

Security improvement:

A study conducted by Verizon found that companies that comply with PCI are more likely to resist substantially up to fifty percent of a cardholder data breach. This means that the 12-required PCI DSS is an effective collection of security checks to protect cardholder information.

 

Reduced risks of losing cardholder data:

Compliance with PCI DSS will make you feel confident that you have done all you need to do to protect cardholder data. Also, your customers feel safe, they believe that they provide their confidential data to a trusted company, that’s you.

 

Improved customer relationship:

According to a study conducted by Quirk’s Marketing Research Review, it reported that 69 percent of customers would be less likely to engage in business with an infringed entity. As a PCI DSS-compliant enterprise, you should be able to significantly reduce data breaches. This means you’re going to have a better customer relationship. They will see you as a firm committed to protecting their information.

 

Increase in Profit:

Once your customers know that their card details are secure with you due to compliance with PCI, the word of mouth will only increase the number of your customers and ensure that your loyal customer base will only keep growing. In short, there are more customers, more sales, and more income.

 

Brand Image building:

With your company’s strong commitment to PCI enforcement, the brand’s identity would stand out in a very suitable way.

 

Sustain Your Business:

Each retailer has to comply with the norm even with one credit card transaction if it does not comply they will be at high risk. If you are not compliant with PCI DSS, you will be fined and you may also face charges for failing to protect cardholder data. You’re going to lose money and hurt your reputation. This may jeopardize your company. To maintain their presence in this market, being PCI compliant is a must for any company that stores, processes, and transmits cardholder data.

 

About the above, we Digital Payment Guru are the payment gateway integrators providing payment gateway integration service for top payment gateways which are PCI DSS compliant. The merchants who use the payment gateway to accept their customers ‘ online payments are assured of the security provided to the confidential card-related data of the customer.