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Security Measures When Using Payment Systems

Participants in electronic financial transactions are interested in the complete security of their payment data and the safety of money in bank accounts or virtual wallets. The security of payment systems that perform online transfers has long raised questions, but current measures are now being used that allow entrepreneurs and individuals to obtain safer financial instruments for making online payments. In this article, you will learn about them. 

What Is An Electronic Payment System?

Security Measures When Using Payment Systems

If you regularly make online payments (in dollars, euros, and other currencies), the success of which depends on the currency exchange rate in Ukraine, we recommend the money exchange – Rates. An electronic payment system is a modern financial settlement system, which is represented by payment through Internet channels. This means that the traditional generation and processing of payment orders is no longer necessary. This meaning includes the following concepts:

  • Financial payments are made through bank cards Visa, MasterCard, and other payment systems. Even these international companies are not able to guarantee payers and recipients of funds the absence of troubles and fraudulent activities. Visa and Mastercard offer absolute protection for financial transactions. This does not guarantee the absence of unauthorized debits from payment instruments through the acquisition of a card number, as well as traffic interception.
  • Interbank settlements. They are carried out through electronic communication channels. An example would be quick transfers by phone number.
  • Financial transactions using virtual wallets, for example, Apple Pay or a digital wallet from Bank of America. By the way, using the services of Bank of America, you can buy Bitcoin through the crypto exchanges Coinbase or eToro.
  • Transactions through the functions of mobile operators, as well as using other payment instruments.
  • The active development of e-commerce involves the use of payment systems, which are represented by the option of making payments through any financial instrument. Payment systems allow owners of online stores and other commercial projects to guarantee comfort for customers, clients, partners, agents, and contractors when performing online transactions.
  • The use of electronic systems for online transfers guarantees effective protection of the payer’s personal data and quick transfer of money to the recipient’s account.

What Ensures The Security of Payment Systems

Small and medium-sized businesses, as well as large companies, use business support to develop their commercial project. Secure payment systems transform a simple electronic product catalog into an online store, increasing profits and turnover of goods. The integration of this tool provides site visitors with the opportunity to select and purchase a specific product here and now.

The security of electronic systems is represented by three important aspects:

  1. Confidentiality. When carrying out financial transactions online, information about the buyer (last name, first name, as well as details of the payment instrument) must be protected from illegal acquisition by third parties. Access to this data remains exclusively with the payer, as well as with certain structures that have legal grounds for this.
  2. Authorization. This factor allows the system to determine the presence of the required amount in the client account before performing the financial transfer procedure. This is an important point when paying for a product or service.
  3. Authentication. This aspect is represented by the need to enter a PIN code or a special set of characters, which are randomly generated and sent to the payer to his phone number. The use of this technology allows the online seller and the client to verify that the payer is the same person as the bank cardholder.

These three factors are used to ensure the payment algorithm is secure. This means that all possible financial risks when making online payments and mutual settlements between the parties will be reduced to zero. This is beneficial for online store owners, and large entrepreneurs, as well as for their clients, partners, agents, or suppliers.

Secure/encrypted Internet Connections

Nowadays, it is not enough to use the Secure Socket Layer data encryption protocol on trading platforms. This certificate does not guarantee the complete security of all financial transactions carried out on the site. For this reason, you should not unconditionally trust the presence of SSL on a resource as the only effective way to combat fraudulent activities.

An exceptional set of technologies, which are represented by current international standards and certificates, allows parties to online transactions to maintain effective protection. The security of such Internet payments is ensured at a high level, which is an advantage for the payer and recipient of finance.

Technical Protection

An online store or commercial online project must use all the latest technical protection tools. This is important for all sites whose activities involve entering payment and personal data of users. Technical protection of electronic payment systems includes:

  1. Linking the payment service to the user’s phone number, as well as a fixed IP address.
  2. Using the HTTPS/SSL or PCI DSS encryption protocol when the client gains access to the payment system. An effective data encryption certificate allows website owners to reduce the risk of fraud to zero.
  3. Integration and use of a virtual keyboard on the payment service to enter identification parameters. This tool helps effectively protect personal data from interception by third parties.
  4. Separation of two channels: formation and authorization of a financial transaction. For example, to authorize an operation, you will need to enter a code (word), which the system sends to the user in the form of an SMS message. This combination of numbers and letters is generated automatically and then sent to the payer within the next 2-5 minutes.

Final Thoughts

Electronic systems for online payments remain a relevant way to conduct e-commerce. Online stores and users who purchase goods or services on the site can count on the security and effective protection of personal data. If you actively make international payments and are looking for a reliable tool for tracking currency exchange rates in Ukraine, we recommend paying attention to Rates. The service is available at any time of the day, no matter how far from Ukraine you are – in Los Angeles or Hong Kong.

David is a technology specialist who has been writing about business, technology, and IT-related topics for the past 6 years. He loves working with brands to develop content that helps them connect with their target audience.