Growing Importance of Payment Security for Online Businesses
The growing number of e-commerce and m-commerce businesses presents new opportunities for cyber criminals. Security has always been a major concern for any online business. And when it comes to customer data and business ethics, there is nothing more important than payment security. The last thing that a customer wants is to spend their whole week dealing with fraudulent charges because they used their card on the wrong site. Payment security has the power to make or break your business. It takes years for businesses to establish a sense of trust and credibility, and it can be lost overnight thanks to an online payments glitch.
Payment fraud is a constant threat for online business
Payment fraud has emerged as the biggest problems for online business owners. Market research reports reveals that businesses have lost an average of 1.32% of revenue to fraud and its related costs in recent years. Fraud in the e-commerce space can happen anytime and anywhere, and so it’s hard to eliminate it.
Services like PayPal, Apple Pay, and Amazon Pay, among others, in the global payment security market have emerged as critical for managing payments for online stores. These online payment solutions are growing in popularity and are the preferred checkout method for security-conscious customers. These services provide additional layer of security coupled with a more convenient checkout experience.
Importance of payment security for growing revenue
Consumers typically expects online businesses to take responsibility for safeguarding their personal data. Studies suggest that almost 25% of consumers drop out of an online checkout as they felt concerned that the website was insecure. The same study also revealed that the availability of authentication and digital certificate logos is essential for consumers in trusting a website. Thinking about the entire payment process, starting with the information displayed on the homepage and all the way through to the checkout, a website from a well-known and reputable brand is the most important factor that makes consumers feel secure.
How payment security solutions help avert payment risks?
Payment risk is the risk of loss due to some “payment events”. Many companies, especially ones that handle a high volume of online payments, have been forced to adopt payment security solutions to avoid difficulties and harsh consequences. Knowing the payment risk helps businesses reduce the likelihood it will occur. One need to consider what the potential threats are, how quickly it can be detected, and how much it could cost. Payment security solutions typically monitor payments to predict the possibility of the risk, and the steps include -
- Verifying customers with the card-issuing bank.
- Deploying payer authentication.
- Providing updated product or service descriptions.
- Making sure your payment descriptor reflects the brand that the customer is buying from (it could be your store’s name for instance).
- Including your phone number on the descriptor. There is more possibility that the customer will call you first before contacting the bank.
- Sending confirmation emails to customers with all transaction details and keep them informed of the transaction status.
Every reputable online business feels responsible for protecting their customers from payment fraud. E-commerce businesses and online companies are always on the lookout for more secure ways to make online transactions, which includes adopting payment security solutions.