5 Ways to Make Online Payment Methods Safer

With the COVID-19 pandemic and the resulting quarantine, people turned to the internet for their shopping needs. While this shift has been highly beneficial for entrepreneurs and e-commerce businesses, it is crucial to ensure the security of online payment methods.

Although online payments make purchasing easier for consumers, an insecure transaction environment can jeopardize the entire business. Fraud and cyberattacks are common, and if they occur, they can damage your company's reputation, harm its financial health, and even lead to fines under the LGPD.

Your customers' data is sensitive and valuable. So, how can you protect it and enhance the security of your e-commerce and online payment methods?

Read on to find out!

What Are Online Payment Methods?

Online payment methods are solutions used to conduct financial transactions in the digital environment. These systems process purchase data, connecting consumers, financial institutions, and e-commerce platforms.

How Do Online Payments Work?

The online payment process involves several stages.

In an e-commerce setting, the process begins when products and services are sold through a digital platform—such as a website or social media. The customer adds selected items to a cart, chooses a payment method, and completes the purchase.

When payment is made using a credit card, the bank issuing the card receives the payment approval request in real time.

In practice, the card issuer charges the purchase amount to the customer's credit limit, and the merchant receives the sale amount in their bank account, typically within 31 days, after deducting fees.

Besides credit cards, other popular online payment methods include bank slips, Pix, WhatsApp Pay, and payment gateways.

Key Online Payment Methods

While credit cards are preferred by both consumers and merchants, several other online payment methods are available:

• Credit and Debit Cards: These offer quick verification, with straightforward contact with the card issuer. They provide good security for both parties and are convenient for customers.
• Bank Slips: A traditional method that is comfortable for consumers who do not have (or prefer not to use) a credit card. The advantage is immediate payment verification. However, it has drawbacks such as slower confirmation and inability to split payments.
• Bank Deposits: Common in the early days of e-commerce in Brazil but fell out of favor due to lower security and higher fraud rates.
• Payment Gateways: These are applications integrated with e-commerce platforms, authorizing online transactions. They act as a virtual credit-check system and can handle multiple payments quickly and securely. Examples include PayPal, PagSeguro, and Mercado Pago.
• Pix: A new payment method that simplifies transactions between accounts using a unique key (e.g., CPF, email, phone number). It eliminates the need for traditional bank details and follows strict cybersecurity controls, though it doesn't completely prevent fraud.

Why Is It Important to Enhance Online Payment Security?

To complete an online purchase, customers need to create an access profile with personal information, such as full name, address, and credit card details. Ensuring users feel secure during this process is crucial.

Remember, the responsibility to create a secure shopping environment lies with the store. It must ensure that information is used solely for purchase purposes and is not misused.

With increasing fraud, scams, and data breaches, companies prepared to combat these issues gain a competitive edge.

5 Ways to Enhance Online Payment Security

According to a Capterra survey, 50% of respondents are concerned or very concerned about security threats when shopping online. Among age groups, older consumers tend to be more worried:

1. Install Security Certificates: An essential security measure for online payment sites is an SSL (Secure Socket Layer) certificate. This converts the site address from "http" to "https," indicating a secure page. SSL encrypts data and boosts credibility. Also, use payment platforms with security certificates like PCI-DSS.
2. Implement Online Payment Policies: Establish clear payment, privacy, return, and exchange policies on your site. This transparency builds trust and can prevent issues like customer loss or negative reviews.
3. Avoid Redirects: Redirects to external payment pages can cause distrust and errors. Opt for a transparent checkout process that keeps users on the same page.
4. Use an Anti-Fraud System: Anti-fraud systems use AI to analyze user behavior, detect suspicious activities, and assign risk levels to transactions based on various factors.
5. Conduct Penetration Testing: Penetration testing (Pentest) helps identify vulnerabilities by simulating attacks. Tests can be:
   • Whitebox: Using available information to find security flaws.
   • Blackbox: Testing without prior knowledge to mimic an external attack.
   • Greybox: Testing with partial information, often through a credentialed user.
6. Monitor Continuously with Bug Bounty: Bug Bounty programs use crowdsourcing to find vulnerabilities. Platforms like BugHunt let companies continuously test their systems with ethical hackers, identifying and fixing bugs before users are affected.

Ensure the security of your e-commerce with BugHunt. Maintaining a secure e-commerce environment is vital for your store's reputation, avoiding fraud, customer loss, and financial harm.

Using a Bug Bounty program is an excellent way to keep your systems, platforms, and applications secure, and ensure your customers remain confident and satisfied.

Want to learn more about how BugHunt can support your business? Click here to get in touch with us!