How safe are online payments?
There’s no doubt that online payments make it easier for businesses to get paid and for online shoppers to make payments. When the right security measures are in place, transactions are generally safe. However, as scams become more sophisticated, it is essential to be aware of risks such as fraud, data theft and other threats when making any type of payment online.
Choosing secure payment methods from authorised providers is the best way to have peace of mind. Credit cards and trusted mobile payment apps offer layers of protection for consumers doing online transactions, including encryption and two-factor authentication. Secure payment platforms make it even safer to make online payments, with extra safeguards such as 3D Secure for added verification and real-time fraud monitoring.
Which payment methods are the safest?
Whichever online payment methods are offered by e-commerce merchants, the most important thing is that all methods are secure and backed by authorised providers. At Payfast by Network, we offer over 18 payment methods, including the most commonly used methods such as cards, Instant EFT and QR code payment methods like Scan to Pay, SnapScan and Zapper.
- Visa and Mastercard credit cards are generally safe, thanks to protections like chargeback options, fraud detection and 3D secure for added authentication.
- Instant EFT payments are secure but irreversible, which means that customers need to carefully double-check recipient details before confirming payment. Only trusted platforms that encrypt data should be used to minimise risks.
- Mobile payment apps such as Zapper and SnapScan offer secure transactions through QR code scanning, while other mobile wallets, apps and contactless payments such as Scan to Pay, Apple Pay and Samsung Pay offer encryption and other security features. Apps should always be downloaded from official stores and unknown QR codes should never be scanned.
- Buy Now, Pay Later (BNPL) services are safe as long as payment plans are offered by accredited financial services. Payment terms and fees should always be made clear so that consumers can avoid unexpected charges. As BNPL involves paying off goods, there is a risk of budget strain or increased debt if payments are not made on time, especially if shoppers are using multiple BNPL plans to shop at different online stores.
- Open banking options such as Capitec Pay offer a fast, easy and secure way to pay bills, pre-paid electricity and perform transactions without sharing card details or banking information. However, it is only available to Capitec clients and requires the banking app, as payments are authorised on the app.
- Mobicred allows account holders to shop online and make a single monthly payment for all purchases, with a revolving credit limit that allows shoppers to spend what is re-paid. As a credit facility, ID numbers, bank account details, payslips and bank statements are required to open an account.
While each of these methods has safeguards in place, using a comprehensive payment platform can add additional layers of security, while making transactions faster and easier. Features like encryption, fraud monitoring and user verification help reduce risks for both businesses and consumers, providing a safer environment for online transactions. Along with improving security, a single payment platform that allows consumers to choose their preferred payment option helps to boost conversion through added convenience and increased trust signals, too.
Secure payment tips for businesses
One of the simplest ways to ensure secure payments for businesses is investing in a comprehensive payment platform that provides a full range of security features such as encryption and fraud detection, to prevent data breaches. Features such as tokenization and encryption convert sensitive data into secure tokens, protecting it during transmission and storage.
Businesses need to prioritise security to protect customer information and maintain trust, while also preventing potential threats that result in lost revenue. Relying on single or limited payment options can put businesses at risk – especially if there is room for possible exploitation such as fake sales.
Along with investing in a payment platform, it is essential to monitor transactions regularly. A platform that offers automated monitoring will help to detect any unusual activity so that potential threats can be noticed quickly. Employees and anyone managing the site should also be educated on current scams and threats to understand data handling protocols.
Bonus Tip: Investing in a payment gateway reduces risk and helps build customer confidence, which is vital for business success.
Secure transaction tips for consumers
Cyber fraud, scams, data theft and other risks mean that consumers need to be extremely careful when conducting any type of transaction online. All it takes to put consumers at risk is one click on a fake link to a promotion that redirects to a phishing site. Although many consumers are growing increasingly aware of threats, cybercriminals are getting smarter and finding new ways to scam shoppers. Some of the ways that consumers can stay safe when making transactions online include the following:
- Reputable, trusted payment methods are essential when doing any type of transaction. Whether paying by credit card or a payment app, consumers should always ensure that selected methods have proven security features and SSL certificates.
- Two-factor authentication (2FA) should be activated on banking apps, Instant EFT, Apple accounts, Samsung accounts, and any other payment method that requires an added layer of security.
- Bank statements should be reviewed regularly to look out for any suspicious transactions or unauthorised purchases.
- Payments should always be made on protected WiFi networks to ensure that they are fully secure. Important things to consider when making transactions on WiFi networks include the following:
- As public WiFi networks are often unprotected, they are vulnerable to hacking and data theft.
- Avoid making payments on public WiFi and use secure WiFi networks instead, such as home networks.
- When away from home, mobile data is a safer alternative for online transactions compared to public WiFi.
Bonus Tip: Update your passwords regularly and use unique ones for each account to minimise the risk of unauthorised access.
Biggest digital payment scams to avoid
There are a number of digital payment scams you should look out for as an online shopper or a business running an online store that can lead to significant financial losses for both parties.
Scams affecting businesses include:
As an online retailer, you may think it is easy to spot a scam. Customers wanting to pay using a method not offered in South Africa is one red flag. You would also be suspicious of invoices from courier companies that you do not use or obvious identity fraud. Those are just the tip of the fraud iceberg. Other popular scams include the following:
- Friendly Fraud aka Chargeback Fraud. In this scam, customers make legitimate purchases but later dispute the charges to obtain refunds. Platforms that track transaction histories and provide detailed records can help businesses defend against chargebacks.
- Invoice Scams. Fraudsters pose as suppliers in these scams, sending false invoices to trick businesses into paying for non-existent goods or services. This type of scam can be prevented by verifying any changes in payment details directly with suppliers.
- Account Takeover Fraud. A more advanced fraud, this scam involves hackers gaining access to business accounts to perform unauthorised transactions. Using platforms with strong login protocols such as two-factor authentication helps prevent account takeovers.
- Triangulation Fraud. In this scam, a fake or replica website is created to entice buyers with cheap goods. These fake websites may appear in ads or be sent via email directing consumers to the website through a phishing attempt. Goods are not shipped as they don’t exist, leaving customers thinking that they have been conned by the real store. This can be hugely damaging to reputation, which has a direct effect on sales. It also affects consumers, who have given sensitive details to scammers (who then use this for further scams). Making it clear that your site uses trusted payment platforms and doing regular social media posts warning customers about this scam is essential to educate customers on how to check that they are shopping on a legitimate site. Payfast by Network allows you to upload logos to e-commerce stores, acting as a trust signal and letting consumers know that they are making payments through a recognised payment platform.
Scams affecting consumers include:
Consumers face numerous risks when transacting online. Some scams are very basic and easy to spot a mile away. Seeing a social media page or email that claims that a well-known brand is giving away huge prizes should be a red flag. Emails that you haven’t subscribed to can often be easily spotted as scams if there are obvious things like typos, or strange ‘reply-to’ fields that don’t seem to be from the store. In some cases, scammers target internet users who may not be tech-savvy, as they are seen as easy targets. But many other scams are not as easy to spot, such as the following:
- Card-Not-Present Fraud. Also known as CNP fraud, this occurs when stolen card details are used for online purchases. To protect against CNP fraud, consumers should enable transaction alerts and use secure payment platforms.
- SIM Swap Scams. SIM swaps enable scammers to transfer your phone number to their own SIM card, as a way to get SMS-based two-factor authentication codes. Using app-based authentication rather than SMS and enabling extra security with mobile networks can reduce this risk.
- Store Account Takeovers. Stolen credentials can be used to access online store accounts, often making unauthorised purchases. To prevent this, consumers should always use unique passwords and enable two-factor authentication on store accounts.
- Fake E-Commerce Sites. These sites usually appear legitimate but exist only to steal payment information. Always verify site security by checking for HTTPS and an SSL Certificate and looking up reviews before entering payment details. Links from emails you haven’t subscribed to receive should never be clicked. Consumers should be wary of promotions, too – especially those that seem too good to be true.
- SMS Phishing Scams. Another common scam involves fraudsters impersonating organisations and targeting unsuspecting individuals with an SMS containing a link to an untrustworthy site to capture their information. For example, the SMS may say you’ve won a prize and to click the link to claim it. It’s important to check whether the URL has a legitimate domain, and if the message seems too good to be true then it most likely is.
Payfast by Network makes digital payments safer & simpler
With online payments playing a larger role in daily transactions, securing digital payments is vital to ensure peace of mind, whether you own a store or shop at a store. This means understanding the potential risks of payment methods and knowing how payment platforms help to avoid scams, fraud, unauthorised transactions, data breaches, and other problems.
At Payfast by Network, our goal is to equip businesses operating in the competitive e-commerce space with the tools needed to succeed. Providing customers with a smooth experience from start to finish isn’t just about having an easy checkout and a well-designed store. It’s also about making safety your number one priority. Offering a wide range of security features and hassle-free integration, our payment platform allows you to focus on your business while we handle your payment processing.
As a comprehensive secure online payment platform, Payfast by Network provides businesses with all the tools needed for full peace of mind. Some of the ways that we help make digital payments safer and simpler include the following:
- Easy Integration. Payfast by Network integrates with over 70 different popular shopping cart platforms, including WooCommerce, Shopify, PrestaShop and Magento, as well as custom website integrations.
- Flexible Payment Methods. Accepted trusted payment methods include Visa, Mastercard, Amex, Diners, Instant EFT, Zapper, SnapScan, Scan to Pay, Samsung Pay, Apple Pay, MoreTyme, Capitec Pay, Mobicred and more.
- Secure Payment Pages. When purchases are made on your site, customers are redirected to Payfast by Network’s secure payment page, where they can choose their preferred payment method. Payments are then processed, your store is notified and the checkout process can be completed.
- Enhanced Authentication with 3D Secure. This feature adds an extra layer of verification for credit card transactions, requiring users to authenticate their identity and reducing any unauthorised use.
- SSL Encryption. All data is secured with SSL encryption, ensuring that payment details and other sensitive information are fully protected from interception.
- Comprehensive Fraud Detection. Real-time monitoring helps to detect and prevent potential fraud, providing a secure payment environment.
What else should you know about Payfast by Network online payment security?
Here are a few commonly asked questions relating to online payment security solutions offered by Payfast by Network.