With the growing number of eCommerce users and transactions, it is quite essential that we are all aware of the mandatory security protocols which are needed for eCommerce websites. Not every transaction you conduct is safe; however, as the saying goes, prevention is better than cure. In such a scenario having complete knowledge about the payment portals will surely help you to avoid fraudulent situations.
Online payment gateways are designed in such a manner that they conduct secure digital payments. Merchants are open to accepting credit card payments by helping them connect to the payment processors and merchant account providers. Gateways are payment services which typically offered for an additional fee, and that helps to process credit cards online through an eCommerce site or in-person through a credit card terminal.
How does the payment gateway system work?
- The buyer makes a credit card payment via the merchant’s credit card reader or using an eCommerce site.
- The payment switch conducts the request to the bank that issued the buyer’s credit card and pushes the transaction information onto the correct credit card network.
- The issuing bank then applies various fraud detection procedures to determine the legitimacy of the transaction. Once confirmed, the buyer has sufficient credit in their account to accommodate the purchase.
- The issuing bank approves (or rejects) the deal and sends this information back through the credit card network to the merchant bank and the payment gateway.
Payment gateways and the Payment solutions
Encryption: Portals tend to encrypt data using the SSL before they send it through the credit card network so as to safeguard the buyer’s account information. It means that the buyer’s credit card information is safe thereby making it hard that makes it difficult for fraudsters to access it as the data is shuttled between the different players in the payment chain.
PCI compliance is a security checklist which is created by the Payment Card Industry Data Security Standard (PCI DSS) and it helps to reduce fraudulent activities. All the organizations that process credit and debit card payments, and all merchants that accept card payments, are equally responsible for their PCI compliance.
For a variety of reasons, the merchants often end up juggling in between a payment processing system from several different companies. This might result in a chaotic situation. They generally tend to use a payment terminal from one vendor, and the payment gateways from another, and a point-of-sale system from a third. As a result of which the chances of fraudulent activities are on the rise. However, with PCI compliance and a properly encrypted credit card, the chances decrease.
While each product or service might be PCI compliant, it does not guarantee that the merchant, as the entity accepting card payments, is PCI compliant. This is so because the PCI compliance pertains to the entire payment landscape, which includes how the merchant’s process payments, and how the merchants connect those systems, and how merchants manage their customers’ data.
Hence, while the system is upgrading with every new update, it is insisted that the buyers do their part of the job and look after their own security. The network is large, any loopholes might result in some severe issues in Online Payment.