Cybersecurity hazards are a reality in today’s digital world. Small businesses and their employees must act cautiously to keep their customers’ private data safe and protect their reputations. Seemingly innocuous actions, like clicking a link in an email, can expose your customers’ personal information to hackers and leave your company vulnerable to legal action, lost business, and brand distrust. The stakes are even higher when a small business accepts credit card payments and other digital payment forms online. Securing your online payment process is crucial for your business’s survival. We’ll share 11 online payment security tips to protect your business and customers and highlight the most secure payment methods to enact.
Implement two-factor authentication
Implementing two-factor authentication (2FA) is a fundamental aspect of any company’s cybersecurity strategy. Two-factor authentication, also known as multifactor authentication (MFA), is essential when dealing with vendors, social media, financial institutions, or any platform where your business has an account. If a cybercriminal gains access to your accounts, your customers’ sensitive information and your company’s private data are at high risk. Utilizing 2FA ensures an additional layer of security by requiring a second form of verification, such as a text message code, in addition to the standard password.
Moreover, 2FA provides immediate notifications if someone attempts to access your account, allowing you to take prompt action to secure it, such as changing the password. According to cybersecurity expert John Price, CEO of SubRosa, using MFA for internal access to payment systems ensures that only authorized personnel can handle sensitive transactions, significantly reducing vulnerabilities. Businesses should implement strong access controls and limit data retention to further minimize the risk of cyber attacks.
Authenticate each transaction
Ensuring the authenticity of every transaction is crucial for online businesses as e-commerce financial transactions are inherently less secure than card-present transactions. Online businesses can enhance security by verifying the transaction in various ways, such as requiring customers to enter the credit card’s security code, matching the card’s billing address with address verification, and obtaining a phone number to call in case of discrepancies.
Using an address verification service and requiring security codes can help prevent charge-backs, which occur when a cardholder requests their bank to reverse a credit card charge on their account. Implementing these verification measures helps to authenticate each transaction, reducing the likelihood of fraudulent activities. This approach not only protects your business but also fosters a sense of security and trust among your customers, encouraging them to continue making purchases from your online store.
Opt for a secure e-commerce platform
One of the best ways to protect your online store is to base it on a secure e-commerce platform. Choose reputable e-commerce platforms such as BigCommerce, Adobe Commerce, Shopify, and WooCommerce, which implement innovative security measures like SSL certificates, PCI compliance, and fraud prevention tools. These platforms have excellent reputations and provide advanced security features to safeguard your online payments.
Although platforms with top-notch security may not be the cheapest, the cost is a vital part of your cybersecurity budget. Investing in a secure e-commerce platform can ultimately save you money by protecting your reputation and your customers’ data. Secure platforms offer peace of mind, ensuring that sensitive information is safeguarded against potential threats, thus protecting your business from potential financial losses and reputational damage.
Purchase cyber liability insurance
Despite taking your best efforts to secure your operations, your business may still be susceptible to savvy hackers or dishonest employees. Cyber liability insurance can help cover your bases in such instances. This type of insurance typically covers expenses related to a data breach, including income loss, customer notification, data recovery, and computer system repairs.
By having cyber liability insurance, your business can mitigate financial losses associated with a cyber attack. Investing in this insurance provides an additional layer of protection, ensuring that you have the necessary resources to recover from a data breach while maintaining your customers’ trust and confidence in your business practices. This proactive approach helps small businesses stay resilient in the face of cybersecurity threats.
Use a personal verification system
Requiring customers to set up an account with your store before making a purchase allows you to verify their identity through login credentials. Alternatively, for high-value transactions, you can request customers to confirm their identity by providing a photo of their driver’s license or another government-issued identification. This verification process ensures the customer is who they claim to be, reducing the likelihood of fraudulent transactions.
Personal verification systems add an extra layer of security by authenticating the identity of the customer, ensuring that orders are legitimate. This practice not only protects your business from fraudulent activities but also instills confidence in your customers that their transactions are being handled securely. Implementing a personal verification system can significantly enhance your overall payment security strategy.
Avoid storing customers’ payment data
To minimize the risk of data breaches, it’s best not to store any customer payment data. Storing electronic data or paper files, such as credit card information taken over the phone, can become targets for cybercriminals. If it is necessary to store payment data for easy repeat purchases, work with a third-party payment processor that uses encryption to protect the data.
Brent Johnson, chief information security officer at Bluefin, recommends using tokenization services to secure customer payment data. Tokenization involves replacing sensitive data with unique identification symbols, rendering the data useless to hackers in the event of a breach. This approach not only protects customer payment information but also fosters consumer confidence by ensuring their personal data is secure.
Obtain an SSL certificate for your site
A Secure Sockets Layer (SSL) certificate is an essential security measure that encrypts communication between the customer and your business. An SSL certificate assures customers that their data is protected when they see the certificate displayed in their browser. In addition to SSL certificates, consider installing a firewall and implementing an intrusion detection and prevention system for enhanced security.
SSL certificates play a crucial role in building customer trust and confidence in your online store. By encrypting sensitive information, you protect customer data from potential cyber threats. Additionally, installing firewalls and intrusion detection systems further fortifies your website against unauthorized access, ensuring a secure and reliable online shopping experience for your customers.
Ensure PCI compliance
Any business that accepts credit cards must comply with the Payment Card Industry Data Security Standard (PCI DSS). These standards outline proactive steps that businesses must take to secure their payment systems. This includes building and maintaining secure networks, protecting account data, scanning for malicious software, controlling access to sensitive data, testing networks for vulnerabilities, and responding promptly to potential attacks.
Accept secure payment methods
In addition to accepting credit cards, consider other secure payment methods with built-in security features. Electronic checks verified through the Automated Clearing House (ACH) network and digital wallets such as Apple Pay, Google Pay, and Samsung Pay, which leverage blockchain technology, offer enhanced security for online transactions.
Ransomware poses a growing threat to small businesses; therefore, adopting secure payment methods is essential. Digital wallets, for instance, are secured through PINs or biometric authentication methods, ensuring transactions are legitimate. By diversifying the payment methods you accept, you not only provide convenient options for customers but also enhance the security of your payment process.
Train employees on security protocols
Human error is a leading cause of data breaches, making employee training a vital part of your cybersecurity strategy. Train your team members to recognize and handle suspicious emails or calls that might be phishing attempts to gain login credentials. They should be aware of the risks associated with clicking unexpected email attachments or sharing sensitive information with unauthorized individuals. Remind employees to log out of their workstations when leaving their desks and never leave work-related USB drives or devices unattended.
Investing in comprehensive employee training can significantly reduce the risk of data breaches caused by human error. Empowering your staff with the knowledge and tools to identify potential security threats helps create a culture of cybersecurity awareness within your organization. This proactive approach ensures that everyone in your business is committed to maintaining a secure online payment environment.
Monitor customer purchasing patterns
Cybersecurity threats are a significant concern in modern digital landscapes. For small businesses, cautious action is essential to safeguard clients’ private data and preserve their reputations. Actions that seem harmless, such as clicking on an email link, can expose customers’ personal data to hackers, leading to potential legal issues, loss of business, and damage to the brand’s trustworthiness. This risk escalates when a small business handles credit card payments and other digital transactions online. Ensuring the security of your online payment processes is vital for your business’s longevity.
The digital world is ripe with cyber hazards that can impact businesses of all sizes, but small businesses are particularly vulnerable. Staying vigilant and taking robust precautions can make a world of difference in averting data breaches. A single misstep, like following a suspicious link, can compromise your customers’ sensitive information and put your entire business at risk.
To help you navigate this complex security landscape, we’ll provide 11 crucial online payment security tips. These strategies will not only protect your business and customers but also ensure you employ the most secure payment methods available. Prioritizing cybersecurity in online transactions is not just smart; it’s essential for survival in today’s interconnected world.