What Is A Secure Payment System And How Does It Safeguard My Business?

A secure payment system, or SPS, is a PCI DSS compliant payment platform that offers high levels of protection from online payment fraud and cyber threats through the use of encryption, tokenisation and multi-factor authentication (MFA) technology.

Secure payment systems work by creating a protected online payment gateway that encrypts and tokenises sensitive customer data. Common features of secure payment systems include support for a wide range of payment methods, access control measures and transaction monitoring, features which all work together to ensure your company’s continued protection and compliance.

The best SPS systems also come with features to help streamline your online checkout process, improve customer experience and gather key transaction insights. 

For startups, scale-ups and merchants in high-risk industries, payment fraud is a very real risk, and a data breach can severely affect company profitability and growth trajectory. The installation of a reliable secure payment system should be a key priority, in order to safeguard your customers and investments.

In this comprehensive guide, we’ll explore exactly what secure payment systems are, how they work, and how to select and set up a secure payment system that’s right for your business.

What Are The Main Benefits Of Having A Secure Payment System?

There are many benefits to building a secure payment system, from reputational safeguarding to the protection of your business investments and future goals.

Here are some of the most common and powerful benefits of having a secure payment system installed:

• Streamline the checkout flow: Simplify the steps required to complete a purchase, minimising the amount of information customers need to provide.
• Implement encryption: Use encryption technology to protect sensitive payment data transmitted during the checkout process.
• Offer multiple payment options: Provide customers with a variety of secure payment methods, including credit cards, digital wallets, and bank transfers.
• Enable multi-factor authentication: Add an extra layer of security by requiring customers to verify their identity using two-factor authentication methods such as SMS codes or biometric authentication.
• Regularly update security measures: Stay up-to-date with the latest security protocols and ensure that your payment processing systems are regularly monitored and audited for vulnerabilities.
• Provide clear security information: Communicate your security measures clearly to customers, reassuring them that their payment information and other sensitive data is safe and secure.

Why Is Having A Secure Payment System So Important?

With more website vulnerabilities being exploited and online payment scams occuring every day, it is of vital importance that you implement a secure payment system to help you to safeguard customer data, prevent fraud and mitigate the risk of unauthorised access to sensitive payment information.

Secure payment systems also offer a solution to the very real problem of constant security threats, protecting you from the potentially catastrophic ramifications of a security breach, which could severely impact your company’s reputation, financial stability and ability to operate normally.

What Features Do Secure Payment Systems Have?

Secure payment systems, or SPS, use technologies like encryption, authentication and tokenisation to mitigate the risk of fraud and prevent unauthorised access to customer details when sensitive information is being processed, transferred or stored.

Companies use secure payment systems to safeguard transactions processed via a wide range of payment methods, from contactless technology (NFC), to credit/debit card, or bank transfer. Depending on the payment method, a variety of technologies are used to safeguard data, such as 3D Secure, a technology for protecting credit card networks, and biometric device authentication, which is used to protect mobile payments via Google Pay or Apple Pay.

Secure payment systems are designed to integrate effortlessly into existing eCommerce infrastructure, providing deep levels of data protection. They often have built-in fraud protection systems that analyse transaction data and provide valuable insights – like Fibonatix’ unique single dashboard view, which gives you an easy view of all transactions and makes gathering intelligence easier.

Identifying the key features of a secure payment system

There are several different kinds of secure payment system, which work slightly differently, but in general the key features of a secure payment system are:

• PCI DSS compliance – Payment Card Industry Data Security Standards compliance, or PCI DSS compliance for short, is an essential feature of any secure payment system. This ensures that your system meets the security standards required of all businesses that accept, process, store or transmit credit card information. Proudly displaying your PCI DSS compliance helps build customer trust, while helping you improve data security and avoid penalties for non-compliance.
• SSL or TLS safety protocols – technology used by secure payment systems to aid in encrypting and sending data between networks 
• Fraud detection systems (FDS) are designed to prevent suspicious or unauthorised activities in financial transactions. They help flag unusual behaviours so that a customer’s bank security system can kick in and withhold payment until a security check has been passed, avoiding risk for you and your customers.
• Authentication methods – these help banks and payment gateways to validate identity and can range from biometrics to tokenised codes sent to devices. 
• Encryption – transforming sensitive data, eg. customer credit card numbers, into a scrambled format called ciphertext using encryption keys. Encryption allows you to store customer payment data for repeat purchases from your website, without the risk of that information being stolen. Accessing the data requires a decryption key, which is not reverse engineerable, and helps ensure PCI DSS compliance.
• Tokenisation – secure payment systems use tokenisation to further safeguard customer data by replacing sensitive information, like credit card numbers, with a unique identifier, or token, that circulates between your customer’s bank and your website. This means you don’t have to pass sensitive data between websites or store it in multiple locations in order to complete a transaction. Tokens are impossible to reverse-engineer and therefore protect against scams, frauds or data breaches. 
• Multi-factor authentication (MFA) – a security process that requires users to provide multiple forms of identification before they can gain access to financial information or approve transactions. MFA takes the form of a PIN or password, a biometric scan, or a token identifier like a code sent via text message to your customer’s registered phone. Secure payment systems often require passwords followed by OTC – one time codes – in order to make gaining unauthorised access to sensitive customer data much more difficult.
• Payment gateways – like Fibonatix Pay By Link – are intermediary facilitators of online transactions, transmitting information between your website and your customer’s bank or payment processor for a safe and smooth transaction. Payment gateways allow you to support a variety of payment methods, from credit and debit cards to digital wallets, and streamline the transaction process by validating customer details, ensuring available funds and authorising payment transfers with speed and accuracy.
• NFC  payments and digital wallets – these streamline your online transactions by allowing customers to use contactless payment options that speed up the process and minimise access to sensitive payment details. With fewer steps and faster speed, NFC also helps to improve conversion rates and improve customer experience.
• EMV chip credit and debit cards – Europay, Mastercard and Visa cards have a special chip that enhances security by generating a unique transaction card for each purchase, so that fraudsters can’t replicate or counterfeit the card as easily as they can with a traditional magnetic stripe card. For secure payment systems, the use of unique transaction codes and dual authentication options helps keep the customer experience speedy and safe.

Secure Payment System Feature Spotlight: Authentification

Authentication is a key part of many card processing solutions, and plays a critical role in enhancing payment security, by verifying the identity of users and preventing unauthorised access to sensitive payment data. To ensure robust authentication and protect against fraud, businesses can implement various authentication methods tailored to their specific security requirements.

Some common authentication methods for enhanced payment security include:

Biometric Authentication	Multi-Factor Authentication (MFA)	One-Time Passwords (OTPs)	Risk-Based Authentication	Hardware Tokens
Biometric authentication methods, such as fingerprint scanning and facial recognition, use unique physical characteristics to verify the identity of users. This means businesses can ensure that only authorised individuals can access sensitive payment data.	MFA requires users to provide multiple forms of verification before accessing payment systems or completing transactions. Common factors include something the user knows (e.g., password), something they have (e.g., mobile device), and something they are (e.g., fingerprint).	OTPs are temporary codes sent to users’ mobile devices or email addresses to verify their identity during the authentication process. By requiring users to enter a unique OTP for each transaction, businesses can prevent unauthorised access.	Risk-based authentication analyses various factors, such as device characteristics, location, and transaction history, to assess the likelihood of fraud. Based on the risk level, users may be prompted to provide additional authentication or undergo further verification.	Hardware tokens are physical devices that generate unique codes or passwords for authentication purposes. By requiring users to possess a hardware token in addition to their login credentials, businesses can add an extra layer of security to their authentication process.

Secure Payment System Feature Spotlight: Payment Gateways

Acting as a bridge between the merchant’s website and the payment processor, a payment gateway securely transmits transaction data while encrypting sensitive information to protect against unauthorised access.

Key functions of a reliable payment gateway:

• Encryption: A robust payment gateway uses encryption technology to scramble sensitive payment data, such as credit card numbers and personal information, making it unreadable to unauthorised users. 
• Tokenization: Payment gateways often employ tokenization techniques, replacing sensitive payment information with unique tokens that are meaningless to hackers. These tokens can be safely stored and transmitted without exposing actual card details, adding an extra layer of security to transactions.
• Fraud Prevention: Our payment gateway includes built-in fraud prevention tools and features, such as address verification and velocity checks, to detect and prevent fraudulent transactions in real-time. 
• PCI Compliance: Payment gateways adhere to Payment Card Industry Data Security Standard (PCI DSS) requirements, ensuring that businesses meet industry standards for protecting cardholder data. 
• Transaction Monitoring: Reliable payment gateway solutions continuously monitor transactions for signs of suspicious activity, such as unusually large purchases or multiple failed authentication attempts.

Secure Payment System Feature Spotlight: Mobile Payment Security

Mobile payment security presents unique challenges due to the diverse range of devices and operating systems used by consumers. To address these challenges and ensure secure mobile payments, businesses must implement robust security measures tailored to the mobile environment. Consider the following: 

• Device Security: Mobile devices are susceptible to theft, loss, and malware attacks. Implementing device-level security measures, such as biometric authentication, PIN codes, and remote wipe capabilities, helps safeguard sensitive payment data stored on mobile devices.
• Secure Communication Channels: Mobile payment transactions must be encrypted during transmission to protect against interception and eavesdropping. 
• Digital Wallet Security: Digital wallets, such as Apple Pay and Google Pay, store payment credentials securely on the device and use tokenization to process transactions. Businesses should encourage customers to use mobile wallets for added security and convenience.
• App Security: Mobile payment apps should undergo rigorous security testing to identify and address vulnerabilities that could compromise the integrity of payment transactions. Regular security updates and patches help mitigate the risk of exploitation by cyber attackers.

Secure Payment System Feature Spotlight: PCI DSS Compliance

1. Data Encryption: Encrypting payment card data both in transit and at rest to protect it from unauthorised access or interception. Encryption helps safeguard sensitive information such as credit card numbers, expiration dates, and cardholder names.
2. Network Security: Implementing robust network security measures, such as firewalls, intrusion detection systems (IDS), and network segmentation, to protect payment card data from unauthorised access and malicious attacks.
3. Access Control: Restricting access to payment card data by implementing strong access controls, authentication mechanisms, and user authentication protocols. Limiting access to authorised personnel helps prevent unauthorised users from accessing sensitive information.
4. Regular Security Monitoring: Conducting regular security monitoring and vulnerability assessments to detect and mitigate potential security threats and vulnerabilities. Continuous monitoring helps identify and address security issues before they can be exploited by attackers.
5. Security Policies and Procedures: Developing and implementing comprehensive security policies, procedures, and guidelines to ensure compliance with PCI DSS requirements. Establishing clear security protocols helps employees understand their roles and responsibilities in maintaining payment card data security.
6. Compliance Validation: Validating compliance with PCI DSS requirements through regular assessments, audits, and compliance reports. Compliance validation ensures that businesses adhere to industry standards and regulations for protecting payment card data.

Secure Payment System Feature Spotlight: Encryption

Encryption plays a crucial role in safeguarding payment data and protecting sensitive customer information from unauthorised access or interception. By encrypting payment data during transmission and storage, businesses can ensure that sensitive information remains confidential and secure.

Below, we explore some of the key aspects of encryption in payment systems:

• End-to-End Encryption: Encrypt payment data from the point of capture, such as a customer’s browser or mobile device, to its destination, such as a payment gateway or merchant server. End-to-end encryption ensures that payment information remains protected throughout the entire transaction process.
• Secure Socket Layer (SSL) Technology: Use SSL technology to establish a secure connection between the customer’s device and the payment gateway or merchant server. SSL encryption encrypts data transmitted over the internet, preventing eavesdropping and interception by unauthorised parties.
• Tokenisation: Implement tokenisation to replace sensitive payment data, such as credit card numbers, with unique tokens that have no intrinsic value. Tokenisation ensures that even if payment data is intercepted, it cannot be used to conduct fraudulent transactions.
• Data Encryption Standards: Adhere to industry-standard encryption protocols, such as Advanced Encryption Standard (AES), to encrypt payment data using strong encryption algorithms and cryptographic keys.

Secure Payment System Feature Spotlight: Fraud Prevention

Preventing fraud in payment systems is essential, and there are various strategies you can implement to mitigate the risk of fraud:

• Fraud Detection Tools: Use advanced fraud detection tools and algorithms to identify suspicious transactions and patterns indicative of fraudulent activity.
• Transaction Monitoring: Monitor transactions in real-time to detect anomalies and unusual behaviour, such as high-value transactions or multiple failed payment attempts.
• Card Verification Value (CVV): Require customers to provide the CVV code printed on their credit or debit cards to authenticate card-not-present transactions and prevent unauthorised use of card information.
• Customer Authentication: Implement multi-factor authentication (MFA) or two-factor authentication (2FA) to verify the identity of customers and reduce the risk of account takeover.

How Do I Choose A Secure Payment System That’s Right For My Business?

Choosing a secure payment system requires you to ensure the right technologies, infrastructure and policies are in place to protect sensitive payment information, whether these details are simply being processed, are to be transferred by parties, or are going to be held by you. 

You should ensure that your chosen secure payment system has fraud detection and transaction monitoring built-in, that it is PCI DSS compliant, and that it has all the features and functionality needed to securely support a wide range of payment methods, for the comfort and ease of your customers.

Build Trust & Safeguard Your Reputation With Fibonatix Secure Payment Systems

Fibonatix is committed to providing robust payment processing solutions that prioritise security at every step of the transaction process. By partnering with us, businesses can streamline their payment processes while ensuring the highest level of security for their customers’ sensitive information. Contact us to learn more about how Fibonatix can help secure your online payments and protect your business from fraud.

FAQ: What Is A Secure Payment System And How Does It Safeguard My Business?

How Does A Secure Payment System Work?

A secure payment system works by using multiple security technologies to encrypt, tokenise and authenticate user data, making you compliant with industry standards and ensuring that your sensitive customer data can never be accessed by unauthorised agents. Secure payment systems are designed to work in harmony with your eCommerce system and to communicate securely with third parties like banks and verification services.

How Do I Choose A Secure Payment System?

Start by figuring out what you need your SPS to do and then reviewing which secure payment systems meet your needs. The best systems have enhanced fraud protection features, easy integrations and provide assistance with PCI compliance, to make managing any disputes or fraud flags easier.

Which SPS Providers Are Most Popular For Small Businesses?

There are a variety of services available for small businesses, depending on your budget and required functionality. Fibonatix provides a range of best-in-class payment processing solutions, from efficient electronic payment processing to alternative payment methods. We support seamless integrations, offer risk management and fraud prevention support, and make it easy for you to support a wide variety of payment options while ensuring a smooth online checkout process for customers.

How Do I Request A Secure Payment System Demo?

Fibonatix provides free demos of our SPS solutions for potential clients. To request a demo, get in touch and we’ll be happy to discuss any aspect of our tools and services.