The Top 5 Security Features to Look for in a Payment Gateway | CatalystPay

The Top 5 Security Features to Look for in a Payment Gateway

  • 5 min read
  • 26 october 2022

When you're looking for a payment gateway for your business, it's important to consider the security features that are offered. A payment gateway that is PCI DSS compliant and offers fraud prevention tools can help keep your business safe from payment fraud and reduce your chargebacks from customers. In this blog post we cover some of the top security features to look for in a payment gateway.

 

1. PCI DSS compliance

Payment Card Industry Data Security Standard (PCI DSS) compliance is important for any business that accepts credit card payments. PCI DSS is a set of security standards created by major credit card companies to protect cardholders' data.  A PCI DSS compliant payment gateway will have measures in place to protect customer data and prevent payment fraud. Some of the measures that a PCI DSS compliant payment gateway will take include encrypting customer data, tokenizing sensitive data, and verifying the identity of the cardholder. By choosing a PCI DSS compliant payment gateway, you can help keep your business safe from payment fraud.

 

2. Fraud prevention tools

A good payment gateway will offer fraud prevention tools such as AVS and CVV checking. These tools help to verify the identity of the cardholder and prevent fraudsters from using stolen credit card information.

 

AVS checks the address that is associated with the credit card to ensure that it matches the billing address on the order. This helps to prevent fraudsters from using stolen credit cards that have a different billing address.

 

CVV checking verifies the cardholder's identity by requiring them to enter the CVV code from their credit card. This helps to prevent fraudsters from using stolen credit card information that they may have obtained through data breaches.

  

3. Encryption

A payment gateway should encrypt customer data to protect it from being intercepted by third parties. This is important for keeping customer information safe and preventing payment fraud.

A payment gateway that uses encryption will convert customer data into a code that can only be decrypted by the payment gateway. This ensures that customer data is protected and prevents payment fraud.

 

4. Tokenization

Tokenization is a security measure that replaces sensitive payment data with a unique token. This helps to protect customer data and prevent payment fraud. Tokenization can be used for storing credit card information, so that it does not need to be entered each time a purchase is made. This reduces the chances of customer data being intercepted and prevents payment fraud.

 

5. 3D Secure 2.0 (New 3D 2.2 Update) 

3D Secure 2.0 (Now 3DS 2.2) is the latest update of the 3D Secure authentication protocol, which allows issuing banks to verify credit card owners during the transaction process. Verifying card owners can transfer liability for fraud disputes away from the merchants who utilize 3DS. Apart from meeting the Strong Customer Authentication (SCA) compliance under PSD2, there are numerous benefits to the new 3DS 2.0 protocol. The improved design dramatically improves the user experience, the conversion rates and ultimately merchant’s revenue.

 

Closing Words

By choosing a payment gateway that offers these security features, you can help keep your business safe from payment fraud and chargebacks. PCI DSS compliance, fraud prevention tools, encryption, 3D Secure and tokenization are all important payment gateway security features that can help to protect your business from payment fraud. By taking advantage of these security features, you can help keep your business safe and secure.

 

We at Catalystpay thrive to enable online businesses by providing a complete payment gateway solution with low processing fees, low commissions, and enhanced security. Contact Us to find out how we can help you take your business to the next level.

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