Payment gateway security capabilities to consider

The annual losses caused by payment fraud are the most difficult problem for most online merchants. Security incidents, such as user payment data leakage, can harm a company's reputation and expose it to legal liability. As a result, when selecting a payment gateway, security should be a top priority.

We will go over the four aspects of PCI DSS, 3D Secure, credit card anti-fraud, and payment tokenization, as well as our recommendations for each.

PCI DSS (Payment Card Industry Data Security Standard)

PCI DSS is a third-party payment industry data security standard developed bysaas payment gateway the Payment Card Industry Security Standards Committee that establishes a set of baseline requirements for cardholder data protection from all aspects of information security management system, network security, physical security, data encryption, and so on. PCI DSS will conduct annual audits of payment gateways and other organizations that provide payment services, and once completed, certified companies will be issued a security level qualification certificate.

Secure 3D

3D Secure (Three-Domain Secure, abbreviated as 3DS) is a security verification service offered to cardholders by international card organizations in order to improve the security of online credit card payments. When making a credit card payment, the user's identity must be verified by entering a payment password, cell phone verification code, and other information known only to the cardholder.

For retailers, the 3DS is a double-edged sword. If 3DS is used, it means more reliable verification of the cardholder's identity, and if there are future complaints about chargebacks, the cost will be borne by the card issuer rather than the merchant; however, because the payment process requires a jump to the card issuer's website for identity verification, it will cause a certain loss of payment conversion rate in terms of user experience and technology; the merchant must also pay for this. In some countries or regions (for example, Europe), major banks, payment gateways, and merchants are already required by law to support 3DS in the payments space.

Anti-fraud measures for credit cards (Fraud Detection)

Credit card anti-fraud technology is used to filter suspicious situations before they occur in order to reduce payment fraud. In one of the most common scenarios, if an anti-fraud system detects that the same IP address has attempted to make a payment using a different card number multiple times in a short period of time, and the majority of them fail to verify, it quickly concludes that the IP is suspect of fraud and blocks all subsequent requests from that IP.

Tokenization of payments (Tokenization)

Payment tokenization technology was officially released in 2014 by the International Chip Card Standardization Organization. After verifying the user's identity for the first time, the payment gateway generates a unique token for each bank card number and returns it to the merchant as a credential representing the card information in the subsequent payment process, avoiding the risk caused by frequent input of card information.

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