4 transaction safety precautions every business should follow

Traditionally, people deposit their money in bank accounts and pay using checking accounts.

Every business tries to safeguard the transactions of its customers.

Whether you are using net banking or their credit card, it is your responsibility to make sure that customers feel safe whenever they share their account details.

With hackers trying to sneak through the security barriers, you need to be on your toes to keep them from stealing business and financial data. So, here are some of the payment security strategies you can employ in your business:

1) EVM compliance

Most debit and credit cards these days come with an EMV chip. This microchip technology, developed by MasterCard, Visa, and Europay provides secure payment transactions. Compared to the security of the magnetic stripe debit and credit cards, EVM cards are safer because they have cryptographic processing enabled.

Cryptographic processing helps to keep your card details safe from some of the talented identity thieves. Your company should migrate to accepting EVM cards as most banks are now stopping magnetic stripe cards. Most importantly, customers prefer to purchase from brands and stores that accept EVM cards because they feel that their transaction is more secure than before.

2) Get an LEI code

If your business trades in stocks, forex, bonds, etc. it is essential to have a legal entity identifier code. This unique identification code will connect your company’s transactions with its counterpart. It is almost like an end-to-end encryption system. Companies involved in the financial markets will connect all their transactions using this code so that no one can break into their accounts and tweak their passwords or account details. Many trading platforms are making LEI compulsory for companies. They won’t let you trade if you don’t have an LEI code.

3) Tokenization

Many customers prefer not to share any sensitive information like account details with anyone. Thanks to tokenization, you can comply with what they want. This security feature doesn’t require you to store confidential information on your operating system. In fact, it sends minimal information like transaction IDs or authorization codes in the form of a randomly generated string of numbers and characters. You can link them back to their original data only when the customer authorizes it.

For example, when a customer wants to pay for a product online, he/she gets a one-time password. This is usually a string of characters they need to type in the payment box to confirm the purchase. Unless they authorize the payment, you can’t complete the transaction. 

4) PCI standards

The Data Security Standard introduced the Payment Card Industry to make sure businesses and customers follow a regulatory framework when it comes to handling debit and credit cards. Data breaches became a massive concern in many countries, and this widespread problem helped bring strict PCI standards. Non-compliance will only invite significant fines from MasterCard and Visa, the top members of the credit card association. So, you are not just helping your business but also your customers from fraudulent transactions.

A combination of the above-mentioned safety precautions will make sure that your business is in good hands when it comes to the safety and security of transactions.