When the U.S. shifted to chip card technology, the goal was to lower in-person credit card fraud. However, the shift may be off to a rockier start than originally anticipated. While the EMV transition helped cut in-store fraud for consumers in 2016, it unintentionally spiked online fraud.
Now, chip cards have given consumers a false sense of security, not factoring in that the chip can do nothing to protect online purchases. Online merchants have put their necks on the line more than anyone, and the need to overcompensate for the false sense of security on top of regular anti-fraud checkpoints is vital. Below are some tips for online merchants to avoid running into security breaches.
At best, a good processor can handle all the back-end technology and make sure every transaction is secure, smooth and streamlined.
At worst, a bad processor can compromise your entire company. Do your research before you sign any contracts.
If you want to take a more traditional route, there’s also the option to go with a service like PayPal or Square to ensure security. However, with these services, customers won’t complete the sale on your website, but rather on the third-party site.
Plus, if you’re ever having any issues with transactions, customer service might not be as efficient as if you chose a smaller company.
Once you’ve found an effective processor, consider your verification process. The first step comes from PCI compliance and firewalls. Even if your processor claims an additional firewall isn’t necessary, the extra step of caution will only help you in the end. You’ll also want to make sure your firewall is properly configured. Otherwise, you may as well not have one at all.
If customers have an account on your site, make sure you have multiple requirements for passwords. You may even want to consider a two-step verification process, such as a security question on top of the login. Remember that it’s not just your customers’ information as stake; a fraudulent transaction could be a major cost for your business too, with extreme cases ending in bankruptcy or close of business.
Lastly, tokenized systems can be your best friend when it comes to protection against credit card fraud. Now that mobile services like Apple Pay are being offered online, the benefits of secure tokenization can transfer as well. With your customers’ information transformed into a numerical token rather than their actual card number, hackers don’t really stand a chance, and your business won’t suffer the consequences.
If you’re still stuck on ways to increase security measures, or you want to know more about how chip cards affect your online transactions, talk to your payments processor about options. Chances are, there are actions you can take that will protect you and your customers without breaking the bank.
