5 online payment security best practices for enterprises

Why is online payment security important?

Since their emergence, online payment systems have been a prime target for criminals eager to exploit them for their own financial gain. Cybercriminals use a variety of tactics, among them gaining unauthorized access to steal consumer data with the goal of reselling it on the dark web. Other fraudulent activities include skimming and carding. The result: Nationwide fraud cost businesses and consumers more than $10 billion in damages in 2023, according to the Federal Trade Commission.

Online payment security can best be understood by referring to the CIA triad, a core tenet of information security. To be secure, enterprises must implement measures designed to ensure the confidentiality, integrity and availability of payment data when authorized parties need access.

Enterprises face a variety of online payment regulations, among them PCI DSS, Know Your Customer guidelines and Anti-Money Laundering procedures. Failure to adhere to PCI rules, for example, can result in businesses getting fined as much as $100,000 per month -- or more depending on the size of the company and how long it takes to reach compliance.

More important to businesses, however, is maintaining the trust and security of sensitive financial data. Customers and business partners value working with enterprises that rank security and consumer trust first and foremost. Prioritizing online payment system security also helps enterprises build consumer and partner trust and demonstrates a commitment to protecting private information.

5 payment security best practices

Implementing proper measures and best practices minimizes the risks of online payment security issues. Below are five best practices and actionable guidance on how to implement these measures.

1. Enable authorization controls. Enlisting the support of verification measures such as two-factor authorization (2FA), MFA or biometric authentication can protect payment accounts and systems from unauthorized access. Additional access controls, such as 2FA, require users accessing payment systems to verify their identity along with their password.
2. Implement data encryption measures. Data encryption converts confidential data into secure code that can only be decoded by authorized parties. TLS and end-to-end encryption are popular payment system encryption schemes. Using these mechanisms protects payment data from being intercepted in transit and at rest in storage.
3. Use secure payment gateways. Secure payment gateways act as a bridge to ensure payment data is safeguarded during transmission. Secure payment gateways can also help meet security requirements set by regulators. Tokenization also helps reduce risks by keeping sensitive payment data off company servers.
4. Regularly update and patch systems. Patches and updates keep systems, networks, applications and software up to date and protect systems from threats. Automatic updates and consistent vulnerability scanning also serve to notify IT of any security gaps that need immediate remediation.
5. Monitor and audit payment transactions. Even the most secure online payment systems are subject to fraudulent attacks. Monitoring and auditing payment transactions help identify and detect anomalies. Auditing logs can also help security teams track payment transactions and system access to investigate suspicious activity. Ongoing monitoring and auditing help ensure the integrity of the payment system and reduces fraud risks.

Online payment systems will always be a prime target of cybercriminals. Ensuring security controls are working effectively can help organizations prevent attacks and keep unauthorized users from accessing their systems. As regulations surrounding security and payment systems continue to evolve, enterprises must adapt to these changes to ensure proper online payment security.

Amanda Scheldt is a security content writer and former security research practitioner.