Tuesday, January 28, 2014

Securing Your Mobile Payment System

“In February, about half the retailers polled by the National Retail Federation say they will use a mobile device as a cash register within a year to 18 months, compared with 6% that use them now.” Not only is it cheaper, but convenient.
However, while convenience is a significant factor in the popularity of mobile credit card processing, security has been an issue with retailers and customers alike. With over 270 password hacks in 2012 alone, everyone has reason to be concerned with any form of online transaction. Still, as a mobile retailer, there are a variety of security options for your mobile payments.

Third Party Security

The most important aspect of mobile payment security is ensuring that your customer’s data is safe and secure in your hands. Because security has become a hot topic within the industry, many third-party payment companies are now offering safer payment options.
  • Encrypted swipe: Many card readers now have multi-layered swipe encryption which follow PCI DSS standards. This means the card data is protected from the moment it’s swiped in, all the way through the payment process.
  • Counterfeit card identification: An authentication process that checks cardholder data and the host and session, ensure that the card being used isn’t counterfeit.

Digital Receipts

After a digital payment it makes sense that you would send out an e-receipt. Well, these have been notoriously unsafe in previous years. Mark Johnson, president of Loyalty 360 told MicroBilt.com, “These email addresses now can be as valuable as a credit card number because they have huge data insights into the individual.” However, utilizing new technologies, you can reduce a hacking risk significantly.
  • NFC validation: The most common way for a hacker to gain information includes emailing the retailer for personal information. To avoid this, you can use NFC validation which will check the information against their data base.
  • Barcode: Including a barcode on your e-receipt that will identify the exact transaction and personal information.

Mobile Payment Security Basics

If nothing else, it’s important that you’ve taken care of the basics before taking any mobile payments. There are simple ways to protect the data on your phone that can make all the difference.
  • Use only one device for payments, and use it for nothing else. Phones are susceptible to being lost, and you decrease those chances by having a payments specific device.
  • Use a password for your phone. While this is a basic security tactic used on most personal devices, it’s your first line of defense if the phone is misplaced.
  • Enable remote swipe in case the phone is lost. This way you can ensure that whoever finds it won’t be able to access any important info.
Accepting payments on your mobile device is a smart way to make more sales in a convenient and cost effective manner. However, it’s important to address the issues surrounding security, for both you and your customers. Whether you make a few basic device changes, or investing in secure scanning equipment, it’s important that your customers feel safe purchasing with you.

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