What Makes Online Payments Secure

One concern that remains at the top throughout the digital sphere is the concern about the security of online payments.

Ever since demonetization struck the economy, digital payments have become the preferred medium of making transactions for the masses.

Post demonetization, various incentives, advancements, and policies are being surfaced now and then for making maximum people be inclined toward digital payments.

With the evolving technology, even the Fintech domain has kept pace and has inflicted the required changes in the system.

The major concern of the industry remains the safety of transactions for e-commerce platforms and their customers alike.

Understand more about what goes around for flowing your every payment safely and with convenience in your business bank account. Here is most of it that one must know about:

  • SSL Protocol

SSL (Secure Socket Layer) is an encryption method for online transactions.  SSL was the first widely used protocol for securing online transactions, and it eventually came to be used to secure authentication and encryption for other applications at the network transport layer.

SSL uses a combination of public-key encryption, private key encryption, and other cryptographic functions to secure a connection between two machines, typically a web server or mail server and a client system, communicating over the internet or another TCP/IP network.

These certificates are extremely imperative in today’s world of online business. This is an encryption method for providing online security in terms of the data that is being transferred from the customers to the website via a payment gateway.

SSL certificates give excellent security and assure the customers that their data is safe at all times. This also brings a sense of trust amongst customers and helps the business attain loyal customers in the long run.

With this kind of trustworthy reputation, your business is more likely to grow manifold shortly.  The SSL certificates work by preventing the online fraudsters to act and pretending as if they are someone else, and thus, your customers can feel safe at all times.

Lyra SSL Based IP POS Solution provides

  • Lyra uses high-level security through SSL/TLS 1.2 to provide a reliable and secure solution.
  • Lyra ensures IP POS secured connection with dual authentication.
  • Each IP POS gets 2 certificates: A server root certificate and a client certificate.
  • This solution provides maximum security through dual authentication while remaining easy to install.
  • PCI DSS Compliance

For processing payments securely from a payment gateway, the online business must ensure that it is PCI DSS compliant.

PCI DSS or Payment Card Industry Data Security compliance is something that tells merchants how sensitive data used in payments needs to be secured.

This requires data encryption to provide payments without using the real card data that is visible during the processing of payments.

PCI DSS compliance helps improve the security, and thus, increases the trust factor of its customers significantly.

There are certain directives needed to be followed for a payment gateway or a website to be PCI-DSS compliant. Lyra Payment gateway being PCI-DSS compliant provides the benefits of the same without any hassle.

There are four levels of PCI Compliance and these are based on how much is the process of a company per year, as well as other details about the level of risk assessed by payment brands.

At a high level, the levels are following:

  • Level 1 – Over 6 million transactions annually
  • Level 2 – Between 1 and 6 million transactions annually
  • Level 3 – Between 20,000 and 1 million transactions annually
  • Level 4 – Less than 20,000 transactions annually

Lyra’s pay tech solutions comply with PCI DSS V 3.2.1.

  • TLS Encryption

TLS encryption is of utmost importance since it tells the users that the data transmitted between the web server and their browser is safe.

The data security on e-commerce platforms is needed to be looked into right from the moment a prospective customer or a customer lands on its website.

The TLS protocol aims at providing privacy and data integration between two or more communicating computer applications.

Without the TLS encrypted communication channel, the data sent over the internet is unencrypted and remains visible to everyone.

This implies that a person with the means and intent to intercept this data may do so and become a threat to the parties involved in making and receiving the payments.

Lyra Network’s all channels are TLS 1.2 encrypted and thus, provide maximum security to its clients and their customers alike.

For maintaining a connection between a client and a server, the following properties are a must when payments are secured with TLS protocol:

  • The connection is private and secure because of the symmetric cryptography which is used to encrypt the data transmitted upon initiating a transaction. The keys of this symmetric encryption are generated uniquely for each connection. Before the data transmission, the server and the client negotiate the details of which encryption algorithm and cryptographic keys to use. This negotiation remains highly secured and reliable, as no modification by an attacker/fraudster is possible in it without being detected.
  • The identity of the communicating parties can be authenticated using public-key cryptography. This authentication can be made optional but is generally required for at least one of the parties (typically the server).
  • The connection is reliable because each message transmitted includes a message integrity check using a message authentication code to prevent undetected loss or alteration of the data during transmission.
  • Tokenization

The most serious issue with digital payments is the safety and security of the money when it flows from the customer’s account (issuer’s bank) to the business’ account (acquirer’s bank).

Tokenization is the introduction of the process of the code/token to make the flow of payments easier as well as safer.

Recently, the digital payment sector is picking pace in the country and so is the number of transactions by the public.

People are becoming aware of the technology that is invented to help them make their lives easier about making payments.

Thus, this ensures the safety of the original data while allowing the payment gateway to access the cardholder’s data and initiate a payment securely.

Since tokenization eliminates the need for storing credit card data, it is a way to improve the security level for e-commerce platforms as well as their customers. Hence, this successfully reduces security breaches.

  • Two-Factor Authentication

Two-factor authentication or 2FA or two-step verification is additional security for ensuring secure payment to customers with every payment.

It is adopted by e-payment gateways and assures secure transactions each time.

How does it work?

When the customer opts for net banking to make a payment for a purchase, he/she is asked to enter the user name and password.

Followed by this information, the bank sends an OTP (One Time Password) to the customer on the registered mobile number.

Diving into the in-depth information includes two levels of authentication. The first level of authentication requires the user to fill in their card or net banking details which are username and password.

With this step, the bank that the card belongs to is identified. The second level provides the user with OTP or requires its PIN/CVV. This level confirms to the bank that the payment request is initiated by the valid user. Henceforth, the payment process is started and the bank transfer takes place.

3DS protocol

3DS (3 Domain Secure) is an XML-based technical protocol developed by VISA to improve online transaction performance and to add a security layer for online credit and debit card transactions.

It consists of specifications that include requirements and specifications for participants involved in transactions.

The process is divided into three domains, as the name implies. , viz. Issuer domain, Acquirer domain, and Interoperability domain. A 3-D Secure payment gateway is a successful and trustworthy technology, which considerably has reduced online frauds, especially when in sync with fraud prevention tools like Cardholder Verification value, Address verification services, etc.

Lyra’s Merchant Plug-in services are 3-DS V2.2 compliant. The latest version of the Lyra merchant plug-in (MPI) platform will help e-commerce merchants prevent credit card fraud and boost the Digital India campaign. The platform operates on its MPI to facilitate 3D-secure verification.

  • Fraud Prevention & Chargeback Minimisation

Having its fraud/risk prevention & chargeback minimization makes the payment gateway the most secure and reliable for e-commerce platforms.

This helps the businesses land customers who prefer to stick on for a long time. Since chargeback minimization also plays a huge role in making the customer feel secure about their money, it is one of the most important supplemented services of the payments gateway.

Payment gateway having this system makes sure that the e-commerce platform opting for its services can provide the best transaction-related experience to its customers.

In conclusion,

If you are opting for a digital pay tech solution for your business, you have to make sure it comes with these security protocols,

  • PCI DSS compliance

  • HTTP

  • 3DS

  • Customer data security protocols set by the government

  • Anti-fraud tools

  • Risk management tools

  • Technical support

  • Data encryption

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