Best Practices to Ensure a Secure Payment Processing for Nonprofits

Payment Processing for Nonprofits

This “Best Practices to Ensure a Secure Payment Processing for Nonprofits” originally published March 10, 2022 by Scottovia.

The payment industry is evolving rapidly in a digital space and delivering robust payment processing solutions for nonprofits. However, it is vital to ensure payment processing platform is reliable, scalable, and secure. After all, no user wants to use a payment processing platform with security flaws.

Overall, every user wants an efficient, secure, and seamless experience when they pay.

So no wonder why optimizing security methods is becoming a short-term goal for businesses offering payment processing solutions.

To prevent data leaks or security breaches while delivering a great checkout experience, merchants must implement comprehensive security practices when accepting credit card payments and other digital payment methods.

This blog post has outlined a few best practices to secure nonprofits’ payment processing.

PCI Compliance

Payment processing platforms must comply with PCI regulations. Payment Card Industry Data Security Standards established guidelines for merchants to ensure the security of sensitive customer data to mitigate the risk of fraud in payment processing.

While choosing a payment processing platform, make sure that the vendor is PCI DSS-compliant — and certified. The vendor you choose must follow and implement security standards to maintain cybersecurity.

SSL Encryption

Make sure all your transactions are protected with the SSL protocol. SSL protocols encrypt the data to ensure user card details and all other sensitive data are protected.

Not only does it improve payment security, but it also wins customers’ trust and gives them the confidence to use your payment processing platform.

To ensure that the site is protected with the SSL protocol, first, make sure to add a padlock icon in the address bar. Secondly, ensure the web address begins with HTTPS.

Monitor Fraud Continuously

Several payment gateways offer built-in fraud monitoring tools to identify a real risk of a fraudulent purchase. Therefore, choosing such a payment processing platform makes it easier to implement security measures that mitigate or decline high-risk transactions. While choosing a vendor for a payment processing platform, make sure to ask about the fraud monitoring tool that enables you to provide a secure experience to your donors.

Biometric Authentication

Choosing a secure authentication method is one of the best practices to prevent security breaches. Several times choosing a weak or convenient authentication enable hackers to carry out a cyberattack (e.g., not requiring a pin for credit card transactions) with ease. Therefore, implementing a biometric authentication method is suggested as it reduces the chances of a data breach during the transaction.

Tokenization

It is critical to ensure user financial or card information is not stored on your server or other unsecured files while processing online payments. Doing so reduces the risk associated with a data breach. And this is possible with the use of tokenization.

Tokenization replaces sensitive transaction information and other data with a string of temporary generated code called a “token.” As a token, the data can be sent via payment networks to complete payment without being revealed. Even if the hackers are able to expose the number, it will be useless for them.

3D Secure

3D Secure is a rigorous authentication method designed to prevent unauthorized access and protect payment gateway from a fraudulent transaction.

All payment processing platforms must comply with new EU laws to ensure robust customer authentication, and 3D Secure is an efficient way to do this.

Match the IP and Billing Address Information

Scanning user details during the transaction can help in detecting potentially fraudulent transactions. With Address Verification Service, one can compare the buyer’s IP address with the credit card’s billing address to ensure that the customer is the cardholder.

Double-Check QR Codes

Before scanning a QR code — especially in a public place — make sure it hasn’t been pasted over with a potentially malicious code. Hackers quickly replace a legitimate QR code used for payment at an ATM, a point of sale, or a parking meter with a malicious QR code and steal your banking or financial account details when scanned.

What’s Your Next Move?

Comprehensive security measures and practices are vital for today’s payment processors. However, it is becoming increasingly challenging for several businesses and nonprofits to prevent fraud risks when the cyber threat landscape evolves.

Due to the tightening regulations, payment processors are under immense pressure to maintain robust security for clients and end-users.

Implementing above mentioned best practices will help you achieve sound information security for your payment processing platforms.

Frequently Asked Questions

How to ensure PCI Compliance?

PCI Compliant can be sure in following Steps

  1. Remove sensitive authentication data.
  2. Protect network systems and be prepared to deal with a system breach.
  3. Secure payment card applications and user details.

What are the leading security technologies used to secure payment systems?

Various security technologies are used to protect the payment system across the industries. These include point-to-point encryption, tokenization, EMV, and 3D secure technology.

What are the main security risks that can impact the payment processing platform?

A few main security issues are:

  • Security vulnerabilities in applications.
  • Network vulnerabilities.
  • Malware injection.

What are the types of digital payments?

There are several types of digital payments. Some of these include

  • Mobile wallets
  • internet banking
  • Digital payment apps
  • Unified Payments Interface (UPI) service

Why is payment security important?

Secure payment processing enables the transfer of online payments, user transaction information, and other sensitive data while mitigating the risk of fraud and other security vulnerabilities.

What do payment processors do?

A payment processor manages the online transaction process by serving as the mediator between the financial institutions and the merchant. A processor can authorize digital transactions and ensure merchants get paid without any delay by facilitating the transfer of funds.

How to choose a payment processor?

Below are the few critical factors to Consider When Choosing a Payment Processor.

  1. PCI Compliance.
  2. Security protocols.
  3. ACH Payments
  4. Certified and Authorized
  5. Integrated Payments.

What are the steps of credit card processing?

Credit card processing consists of three steps:

  • Payment Authorization
  • Payment Authentication
  • Clearing

How do fraudsters get credit card details?

Cybercriminals simply target ATMs for financial frauds. They integrate skimmer with ATM and copy card details and other information and trap the card in the machine.The payment industry is evolving rapidly in a digital space and delivering robust payment processing solutions for nonprofits. However, it is vital to ensure payment processing platform is reliable, scalable, and secure. After all, no user wants to use a payment processing platform with security flaws.

Overall, every user wants an efficient, secure, and seamless experience when they pay.

So no wonder why optimizing security methods is becoming a short-term goal for businesses offering payment processing solutions.

To prevent data leaks or security breaches while delivering a great checkout experience, merchants must implement comprehensive security practices when accepting credit card payments and other digital payment methods.

This blog post has outlined a few best practices to secure nonprofits’ payment processing.

PCI Compliance

Payment processing platforms must comply with PCI regulations. Payment Card Industry Data Security Standards established guidelines for merchants to ensure the security of sensitive customer data to mitigate the risk of fraud in payment processing.

While choosing a payment processing platform, make sure that the vendor is PCI DSS-compliant — and certified. The vendor you choose must follow and implement security standards to maintain cybersecurity.

SSL Encryption

Make sure all your transactions are protected with the SSL protocol. SSL protocols encrypt the data to ensure user card details and all other sensitive data are protected.

Not only does it improve payment security, but it also wins customers’ trust and gives them the confidence to use your payment processing platform.

To ensure that the site is protected with the SSL protocol, first, make sure to add a padlock icon in the address bar. Secondly, ensure the web address begins with HTTPS.

Monitor Fraud Continuously

Several payment gateways offer built-in fraud monitoring tools to identify a real risk of a fraudulent purchase. Therefore, choosing such a payment processing platform makes it easier to implement security measures that mitigate or decline high-risk transactions. While choosing a vendor for a payment processing platform, make sure to ask about the fraud monitoring tool that enables you to provide a secure experience to your donors.

Biometric Authentication

Choosing a secure authentication method is one of the best practices to prevent security breaches. Several times choosing a weak or convenient authentication enable hackers to carry out a cyberattack (e.g., not requiring a pin for credit card transactions) with ease. Therefore, implementing a biometric authentication method is suggested as it reduces the chances of a data breach during the transaction.

Tokenization

It is critical to ensure user financial or card information is not stored on your server or other unsecured files while processing online payments. Doing so reduces the risk associated with a data breach. And this is possible with the use of tokenization.

Tokenization replaces sensitive transaction information and other data with a string of temporary generated code called a “token.” As a token, the data can be sent via payment networks to complete payment without being revealed. Even if the hackers are able to expose the number, it will be useless for them.

3D Secure

3D Secure is a rigorous authentication method designed to prevent unauthorized access and protect payment gateway from a fraudulent transaction.

All payment processing platforms must comply with new EU laws to ensure robust customer authentication, and 3D Secure is an efficient way to do this.

Match the IP and Billing Address Information

Scanning user details during the transaction can help in detecting potentially fraudulent transactions. With Address Verification Service, one can compare the buyer’s IP address with the credit card’s billing address to ensure that the customer is the cardholder.

Double-Check QR Codes

Before scanning a QR code — especially in a public place — make sure it hasn’t been pasted over with a potentially malicious code. Hackers quickly replace a legitimate QR code used for payment at an ATM, a point of sale, or a parking meter with a malicious QR code and steal your banking or financial account details when scanned.

What’s Your Next Move?

Comprehensive security measures and practices are vital for today’s payment processors. However, it is becoming increasingly challenging for several businesses and nonprofits to prevent fraud risks when the cyber threat landscape evolves.

Due to the tightening regulations, payment processors are under immense pressure to maintain robust security for clients and end-users.

Implementing above mentioned best practices will help you achieve sound information security for your payment processing platforms.

Frequently Asked Questions

How to ensure PCI Compliance?

PCI Compliant can be sure in following Steps

  1. Remove sensitive authentication data.
  2. Protect network systems and be prepared to deal with a system breach.
  3. Secure payment card applications and user details.

What are the leading security technologies used to secure payment systems?

Various security technologies are used to protect the payment system across the industries. These include point-to-point encryption, tokenization, EMV, and 3D secure technology.

What are the main security risks that can impact the payment processing platform?

A few main security issues are:

  • Security vulnerabilities in applications.
  • Network vulnerabilities.
  • Malware injection.

What are the types of digital payments?

There are several types of digital payments. Some of these include

  • Mobile wallets
  • internet banking
  • Digital payment apps
  • Unified Payments Interface (UPI) service

Why is payment security important?

Secure payment processing enables the transfer of online payments, user transaction information, and other sensitive data while mitigating the risk of fraud and other security vulnerabilities.

What do payment processors do?

A payment processor manages the online transaction process by serving as the mediator between the financial institutions and the merchant. A processor can authorize digital transactions and ensure merchants get paid without any delay by facilitating the transfer of funds.

How to choose a payment processor?

Below are the few critical factors to Consider When Choosing a Payment Processor.

  1. PCI Compliance.
  2. Security protocols.
  3. ACH Payments
  4. Certified and Authorized
  5. Integrated Payments.

What are the steps of credit card processing?

Credit card processing consists of three steps:

  • Payment Authorization
  • Payment Authentication
  • Clearing

How do fraudsters get credit card details?

Cybercriminals simply target ATMs for financial frauds. They integrate skimmer with ATM and copy card details and other information and trap the card in the machine.

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Ashok Sharma

A #DigitalStrategist, Marketing Consultant, #SOCIALMEDIA INFLUENCER, and #GrowthHacker