Security Measures that Payment APIs undertake to Avoid Threats such as Fraud and Data Breaches

Digitalization has enabled businesses to accept payment online. Payment APIs facilitate these transactions and allow companies to receive online payments in different ways. Online purchases continue to grow. In 2017 alone, online retail sales amounted to 2.3 trillion dollars.

As online transactions continue to expand, cyber criminals are finding it more appealing, exposing the Payment APIs to threats such as fraud. To curb this menace, merchants and companies have started to take security measures that protect the customers while shopping online.

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The following are some of the security measures that companies take to secure their customer’s information;

1.   Secure online payments with SSL

After the recently detected vulnerability in the network security technology WPA2, enabling an attacker to listen to the traffic between the computer and the internet, SSL is increasingly being looked at as one of the safest measures of protecting transmitted data. So, make sure that the website you are browsing uses it.

When used, an SSL protocol makes the data sent across the internet unreadable to everyone except for the server you are sending the information to. It provides data integrity, privacy, and security for your website. It also protects the card details from hackers and identity thieves.

The SSL is a significant requirement for PCI [Payment Card Industry] compliance, and it plays a vital role in payment security. SSL is symbolized by a green padlock icon on the website.  Consumers are now more willing to make purchases when they see the green padlock because it shows that their connection is secured.

2.   Encryption and Tokenization

Encryption is the process of converting electronic data into a coded message that only the receiver and the sender can understand. Any third party cannot access the encrypted message without the encryption key. It is the same as a safe deposit box which cannot be opened without the corresponding key, which means anything stored inside there is stored securely.

Encryption is excellent for exchanging sensitive data like credit card information across all the devices and networks, so you can make online purchases safely and securely.

Tokenization involves changing a piece of data, such as your credit card account number, into a random combination of characters that have no meaning in case a breach occurs. The token obtained after the process serves as a reference to the original data, but it cannot gain any values from it.

Tokenization is used to reduce the amount of information and credit card data that a company stores. It also strengthens the security of online transactions.

3.   PCI-DSS Compliance

The Payment Card Industry Data Security Standards are a set of requirements for payment APIs. It is obligatory for any company that store, handle, and process credit card information. The PCI-DCC has a set of security standards and policies which are designed to protect online payment, as well as the handling of credit card data against cyber-attacks or breaches.

Companies such as airlines, online retail, call centers, hospitality industry, and travel agencies are obliged to meet the PCI-DCC requirements. PCI has an obligation to process payments on your website.

 When choosing the right merchant for online purchase, the customer should ensure that the merchant is complying with security standards. This is because if the merchant doesn’t comply, then he is extremely vulnerable to fraud, data breaches or identity theft.

 To ascertain if the merchant or the company is PCI-DCC compliant, look for the PCI-DCC symbol on their website. Though some companies might be compliant, they may not place the symbol on their website.- Still, it’s good to be on the safer side when it comes to security.

4.   3D Secure

The 3D Secure is a method of authentication that adds an additional layer of security to online transactions. This method allows customers to receive a several digit code called One Time PIN [OTP] from the issuing bank, generated specifically for this unique transaction.

The company sends the customer the code through email or SMS, and once the customer has entered it correctly, the acquiring bank can authorize or decline the transaction.

The 3D Secure means the 3 Domain Servers, because it involves the merchant, the acquiring bank, and the card issuer [e.g., Visa, MasterCard, etc.]