Digital payments have transformed global commerce, allowing us to effortlessly make payments in person and online without the need for physical cash or checks. Many businesses take this a step further, utilizing dedicated digital payment platforms that take care of all their accounts payable and receivable. These platforms allow companies to simplify finances and better manage cash flow, tracking everything with a single application.
However, handing over your financial data and operations to a third party comes with risks. There are many digital payment platforms on the market, and businesses must do their homework to ensure they choose a secure option that takes good care of their data. It's easy to get distracted by a platform's functionality, but robust security protocols and practices should always be the top priority.
You want a platform that offers all the benefits without sacrificing any of the security.
For the most part, digital payments offer better protection than paper checks. They remove any concerns about checks getting stolen or lost, people forging signatures, or the fact every check sent exposes your business' banking details. While you can forget about these security concerns, digital payments open the door to the modern threat of cybercrime.
The growing use of online payments provides hackers with all the opportunities they could wish for. They can intercept data or infiltrate networks and cause havoc, gaining access to sensitive financial information.
Cybercrime is a real and growing problem for businesses around the globe. However, if cybersecurity is given the attention it deserves, your business can incorporate digital platforms and easily accept payments online while minimizing risk.
So, what should you look for when it comes to digital payment platform security?
PCI compliance
In 2006, American Express, Visa Inc., Mastercard, Discover, and JCB international formed the payment card industry (PCI) council to establish international standards regarding cardholder data security.
PCI helps organizations implement policies that protect payment systems from data breaches and theft. When it comes to digital payment platforms, PCI data security standards (DSS) compliance shows that an organization meets a range of requirements (assessed regularly by PCI), ensuring that credit card information for online payments is held securely.
These regulations
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Build and maintain secure networks.
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Protec cardholder data.
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Enhance vulnerability management programs.
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Monitor and test networks regularly.
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Provide information security policies.
Businesses can find further details on PCI DSS requirements on the council's website.
Some digital payment platforms may not actually store sensitive credit card data on their servers, outsourcing this to a separate card processor service instead. If this is the case, you should seek information regarding that service's PCI compliance.
Encryption
Data encryption is critical to ensuring your sensitive data doesn't end up with the wrong people. Encryption is the process of concealing information such that it is only discoverable with a specific key. Using state-of-the-art cryptographic algorithms for data transmission and storage ensures that hackers looking to access your information only get access to a jumbled mess of indecipherable data.
Encryption standards to look out for when it comes to digital payment platforms include:
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Transport layer security (TLS) protocols for data in transit between web applications and servers. TLS ensures encryption, authentication (sending/receiving parties are who they claim they are), and integrity (data is not forged or tampered with in any way).
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Regular audits meet the standards of system and organization controls (SOC) 1 and 2. SOC audits ensure the company employs procedures, policies, and technologies, to protect its data. Whereas SOC 1 focuses on the company's financial processes and SOC 2 focuses on data security.
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Secure socket layer (SSL) encryption certificates to protect all information going through their site. TLS is the successor to the SSL protocol, with both aiming to provide encrypted communication between a web application and a server. In most respects, an SSL and TLS certificate mean essentially the same thing.
Access controls
When using a digital payment platform, it's crucial to understand the access control options available to you. There will likely be a range of employees interacting with this service at your company. To improve security, it helps to have permission-based access so that staff can use the platform without gaining complete access to all the data it holds.
With permission-based access, you can create different access tiers depending on each person's role. For example, accounting staff will need full access and payment authorization power, while other employees may only need access to review bills.
Digital payment security in the modern world
With more and more payments becoming digital, there has never been a better time to review the security of your services, particularly digital payment platforms that hold your most sensitive financial data. Although PCI compliance, encryption, and access controls are a great place to start, data security is a complex world with more factors to consider.
Digital payment platforms are a great way to improve business operations. By exercising your due diligence, you can ensure data is only shared with platforms that understand the importance of security.
