The world of buying and selling has experienced tremendous change. These days, businesses are not only going digital, but the means of payment are also changing. There are now online payment alternatives to the traditional means of payment.
As a business owner, having an online payment facility where your customers use their credit and debit cards or even their mobile wallets makes payments for goods and services convenient, especially when they do not have physical cash.
As online payments grow, online scams and payment frauds also grow. Digital payments come with many security risks and data breaches, which could harm a business if not adequately addressed.
Perhaps, you’re curious – how do I protect my business from payment fraud? Then, you need to see this piece to the end.
Payment Fraud: How does it affect your business?
Online payments are gaining popularity, and with the rate of this growth, there is no doubt they will become a primary payment option in the coming years. A report by ACI backs up this claim. It predicts that by 2024, more than 80 percent of transactions will happen electronically.
Online payments are an excellent idea for technology enthusiasts and people fascinated by the concept behind a cashless economy. However, payment fraud happens when an unknown individual uses your payment details for unauthorized transactions and purchases.
A 2023 credit card fraud report by the security.org team states that 65 percent of credit card holders have been victims of fraud at a particular moment. Payment fraud is detrimental to your business and can drain money, time, and energy.
What’s more, say a customer patronizes your business and files a fraud complaint afterward, which is a chargeback, you’d be required to pay extra fees and fines. This could be detrimental to your business.
To reduce the rate of payment fraud, payment fraud prevention strategies have to be put in place. Let’s get down to tips to secure your online transactions from payment fraud. Shall we?
5 Tips to secure your online transactions
1. Stay alert for warning signs
Staying alert to suspicious activities on your website is vital as you go about your business. Frauds are getting smarter day in and day out. Be aware of the situation.
There are indications to detect suspicious moves on your E-commerce website. However, these indications may not necessarily result in a case of payment fraud. Still, you need to take note when you notice them at any point in your business.
For example, you notice larger orders than you’ve ever received on your website. In that case, there’s a possibility of it being fraudulent. Scams often want to process large orders quickly to avoid being caught.
Another thing to watch out for is multiple small orders. Scams often try to test if a stolen card works, so they start by initiating multiple purchases before moving to larger ones.
Moreover, watch out for orders from different cards. It is uncommon for a customer to make recurrent purchases over a short period with various credit cards. This may be suspicious.
2. Use secure apps and websites only
This is particularly important because many apps and websites are calling for your attention nowadays. As a rule, download from official stores like Google play store for Android users and Apple play store for iOS users.
These platforms have verified the quality of the app in question. Avoid downloading apps from unofficial websites as they may host cybercriminals waiting to pounce on their next target.
When performing any online transaction, use a personal computer or mobile device. Avoid computers installed at public libraries or internet centers. They could have been compromised.
When downloading any app, check for ratings and comments that past users leave. It will be helpful to indicate the quality of the app you’re about to download.
3. Utilize an address verification service
An AVS helps to prevent fraud. It is a mechanism that enables you to ascertain that the billing address provided by a customer is the same as the one on file with the credit card issuer.
The transaction would be flagged or declined if the addresses do not match. Here is a seamless avenue to detect fraudulent transactions and protect your online business.
4. Employ an SSL Certificate for your website
Secure Sockets Layer (SSL) is a security feature your business website should have. With the SSL protocol, you can encrypt communication between your visitor’s web browser and your website’s server.
The sensitive data sent between the two computers may be disrupted by hackers, and SSL prevents the data from being hacked. Aside from this, your customers will be more confident to do business with you if they notice you installed the SSL certificate on your website.
Typically, if your website is SSL-encrypted, there is an additional S to the HTTP URL of your website. If your site is not SSL encrypted, most browsers warn visitors that your website is not secure.
5. Safeguard your computer
With payment fraud on the rise, you’d do your business good to put safety measures in place for online transactions. You’d want to install antivirus software on your business computer.
You’d also want to regularly run and update the software to prevent the invasion of viruses. In addition, installing anti-spam software, firewall, and anti-spyware software, and a proxy checker can also help tighten the security of your website.
Online payments: The future of transactions
As online payment grows, businesses must have the proper knowledge to prevent payment fraud. Using the above tips is germane to the security of your business and customers. Try them out, and boost the security of your online transactions.
Author’s bio: Ale Oluwatobi Emmanuel is a freelance SEO content writer for SaaS and web 3 brands. With several published by-lines on notable tech websites, he’s passionate about tech, and the innovations that come with it. In his leisure, he listens to music and plays classical piano. Reach Ale via firstname.lastname@example.org