Securing Your Income: Your Payments May Not Be as Secure as You Think

JetPay Communications

December 21, 2018

Nearly every week, another major data breach and the subsequent loss of sensitive customer information makes headlines. Electronic data breaches are a serious and growing threat to businesses everywhere as hackers continually search for vulnerable targets. Security is crucial for any company, no matter how large or small, and the risk extends far beyond the potential to lose customer data.

Security lapses can affect your bottom line, and even tamper with the integrity of your payments. When your business chooses to work with a third-party payment processor to handle transactions, especially online purchases, a strong security presence isn’t just vital — it’s mandatory. Here are the most important features your processing partner should have in place to protect your customers and the reputation of your business from the consequences of a data breach.

Tokenization Adds Additional Layers of Defense

The development of tokenization is one of the most critical advances in anti-breach protection, and it is an important consideration for your business. With a tokenized payment system, your business never needs to handle or store customer card information directly. Instead, your payment processor provides a secure, PCI-compliant server that replaces card numbers with valueless tokens.

If intercepted or revealed, a hacker could do nothing with the token — it is useless until it’s brought into your processor’s secure system. There, the token server confirms its validity and allows processing of a charge to the real credit card number. The associated risk of exposure is very low.

Take Advantage of Automated Anti-Fraud Detection Services

Improvements in machine learning and fraud-detection algorithms mean payment processors can supply advanced identity theft protection services that are important to businesses. Not every purchase is legitimate — sometimes, a thief already has a victim’s credit card data. Automatically detecting and flagging suspicious behavior and conducting automated audits of transactions to pinpoint potential instances of identity theft are just as essential to a good security system as tokenization and P2PE.

Point-to-Point Encryption Could Provide a More Secure Future

One of the most secure features for digital security today is P2PE, or point-to-point encryption. As a strong first line of defense, P2PE exists to ensure that every electronic communication involving transaction data remains locked down from origin to destination. This means, for example, that credit card data and address information undergo encryption immediately at the point of sale and remain encoded in transit to your payment processor’s secure server environment. Only in that safe space can the processing system interact with the data. P2PE protects against “man in the middle” attacks and others that attempt to intercept data in transit. This level of protection is not used be a majority of businesses, but rather, is required when interacting with government entities. However, with the increase in the amount of data breaches that take place when a company is PCI compliant, which means they are following all the security regulations put in place, stronger security measures, such as P2PE, may be required in the future.   It is also interesting to note that while this process is relatively new in the US, it has already been accepted as a necessary level of security in Europe.

Strengthening Your Security with a Trusted Partner

Ultimately, the best approach to security is one that is proactive and not reactive. Don’t wait for a data breach to seek stronger protection. At JetPay, we take our responsibility to create secure payment ecosystems for our business partners very seriously. We provide Level 1 PCI-compliant service equipped to handle the highest volume of transactions in the most rigorous types of security environments. Just as importantly, we provide tokenization service that locks data away from prying eyes and are in the process of becoming P2PE certified – taking our own advice of being proactive rather than reactive.

In combination with our flexible and robust payment processing services, JetPay streamlines business services without compromising on safety. Find out more today.

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