We’ve witnessed rapid changes in the payment spaces over the past decade. With these changes, we expect to see more insecurity or fraud cases on the different payment options or systems customers use with the rapid changes. Therefore, it’ll be imperative to consider finding the best alternative ways of ensuring safe and secure transaction or payment processing for your customers or consumers.
Technological experts have developed various payment processing trends or methods that help businesses have safe and secure transactions. These digital or new payment trends make it easier and safer for consumers to make payments and prevent them from becoming victims of fraud. This article highlights top payment processing trends for new technology to enhance security.
1. Validating All Payments or Transactions Through the Multi-factor Authentication.
With the growing need to protect customers’ data confidentiality, most technology experts have urged most businesses to adopt multi-factor authentication. Unlike the traditional transaction methods, this trend offers the appropriate security to the customer’s data during any payment or transaction. Apart from security, it also offers convenience when carrying out transactions.
Multi-factor authentication is a vital security trend that most individuals, especially financial service providers, incorporate into their transactions. This security feature plays a huge role in digitalizing the transactions processes of the consumers or customers. It allows the consumers to validate their payment or transactions without using a static PIN, which is usually prone to fraud.
This payment processing trend comes with three authentication factors; biometric identification, device in use, and use of passwords. The biometric capabilities are essential for mobile phone users to authenticate the payment processes. In addition, it comes with iris-linked or touches authentications to replace the password that most consumers use when making transactions. PIN removal when making payments is an appropriate measure to tighten security while transacting.
2. Safeguarding Customer Transactions and Data Through Card Tokenization.
Another secure payment processing trend for new technology to enhance security is card tokenization technology. Technological experts have urged most individuals and businesses to consider shifting from magnetic strips to chip cards to enhance the security of their payments. It’s a great move to help prevent fraud from duplicating information between cards or a physical store.
It’s an essential technological feature that seeks to prevent the digital duplication of your cards. In the past fraudsters, used this technique to generate untraceable payment tokens and even steal the tokenized data. However, the payment partner will keep the payment information securely from the fraudsters with this feature.
Compared to encryption, tokenization of your cards requires less computational knowledge, making it a faster and cheaper alternative. Most companies and business firms are incorporating this trend to enhance the security of their payment or transactions. Experts regard it as a mainstream payment security strategy as it’s a more cost-effective and secure approach for sensitive customer payment and transaction information.
3. Removal Signature Requirements.
Most fraudsters and hackers used the signature that consumers or customers provided on their tractions to access their details in the past. However, technology has scrapped the requirement or use of signatures on most transactions over the past years to enhance security. Technological advancements have led to advanced payment security technology like artificial technology, tokenization, or EMV.
These signature-free transactions have made it easier and more secure to have transactions, as most of them have become virtual. Using signature-free transactions offers the appropriate security and the ease of having transactions, as the fraudster won’t easily get your payment information. Nevertheless, not all merchants have incorporated the removal of signature transactions due to the cost of payments or transactions.
4. Enhancing E-commerce with the 3 Ds.
Due to the rapid rise of e-commerce activities, it’s imperative to consider choosing the appropriate way to cater to the unpredictable number of online payments and transactions. Importantly, choosing the 3Ds strategy is the best feature as it offers secure and real-time information sharing between financial institutions, payment networks, and digital merchants.
You can use the 3Ds to acquire accurate customers’ financial information authentication. It’s a feature that allows the customers or consumers to complete payments or transactions without slowing down your business or asking for a static password. This security technique prompts the consumers to have identity verifications after having a merchant’s contextual analysis for high-risk transactions.
It’s an appropriate trend to offer additional e-commerce fraud protection. When looking at the payment processing trends to enhance security, it’s one of the effective mechanisms for both mobile devices and personal computers. It helps to enhance security, speed up authentication, and provide a faster checkout. Nevertheless, this trend tends to affect your payment success rate on various transactions adversely.
5. Enabling Contactless Payments.
Enabling contact payments is one of the rapidly growing payment processing trends. Most financial institutions or digital payments players have incorporated the feature to enhance the security of the payments or transactions. For instance, most of them use technological innovations like QR and NFC codes to achieve these payments.
While using this feature, your consumers will make all their payments through a tap-and-pay strategy. The strategy dynamically generates PINs that secure the transactions or payments. Apart from offering easy and quick payments and transactions, contactless or wearables have added an extra security layer on all the transactions or payments.
Importantly, to achieve the best results from the wearables or contactless transactions, it’ll be imperative to link them with your bank accounts or use the card tokenization feature. The system generates dynamic PINs that play an integral role in preventing financial or cyberattacks, such as phishing, keylogging, and other internet frauds. Most individuals are switching to this payment option to upgrade the security of their payments or transactions.
With the latest emerging threats on the financial transactions, it’ll be essential to find the appropriate payment processing trends for new technology to enhance security. The trends are vital to ensure you have secure payment and transactions. Contactless payments, the use of signature-free transactions, card tokenization, and multi-factor authentication are appropriate to enhance certain transactions or payments. Apart from enhancing secure payments, these systems help boost customer satisfaction and the growth of your enterprise.