How safe are online payments?
Online payments are generally safe when the right security measures are in place. However, no payment method is completely risk-free, and scams keep getting more sophisticated. Good online transaction security combines several layers of protection, including encryption, user authentication, fraud monitoring and secure payment platforms.
Consumers should use trusted payment providers and keep security features such as two-factor authentication enabled. Businesses should choose payment systems with appropriate safeguards to protect payment information and customer data.
Which payment methods are the safest?
No single payment method is safest for every situation. The key is to use a trusted payment method through a secure, authorised platform. Payfast by Network supports more than 18 payment methods.
Some common options include:
- Credit and debit cards: Card payments include protections such as fraud detection, chargebacks and 3D Secure authentication.
- Instant EFT: This provides a secure way to pay directly from a bank account, but payments are generally irreversible, so recipient details should be checked carefully.
- Mobile wallets and QR payments: Options such as Apple Pay, Google Pay, Samsung Pay, SnapScan and Zapper use security features designed to protect payment information.
- Buy now, pay later: These services from providers like Payflex can be secure when provided by accredited providers, but customers should understand the payment terms and potential fees.
- Open banking: Options such as Capitec Pay and Absa Pay allow customers to authorise payments through their banking app without sharing card details with the merchant.
What is payment-processing security?
Payment-processing security refers to the measures used to protect payment information as a transaction is processed. This includes protecting sensitive data during transmission, handling payment details securely and monitoring transactions for suspicious activity.
For businesses, payment-processing security is important because their payment systems may handle sensitive customer and transaction information that they need to protect.
Key security measures can include:
- Encryption, which helps protect information while it is being transmitted.
- Tokenisation, which replaces sensitive payment information with a unique token.
- Two-factor authentication, which adds another verification step when users access an account.
- 3D Secure, which adds authentication to eligible card transactions.
- Fraud detection, which helps identify unusual or potentially fraudulent activity.
Businesses should monitor transactions regularly and make sure employees understand common scams and appropriate data-handling practices.
How can businesses improve payment security?
A secure payment platform is only one part of protecting your business. Good internal practices matter too.
Businesses should:
- Use a trusted payment provider with established security measures.
- Monitor transactions for unusual activity.
- Keep business and customer information secure.
- Use strong, unique passwords and two-factor authentication.
- Train employees to recognise phishing, invoice fraud and other scams.
- Verify changes to supplier banking details directly with the supplier.
These steps can help reduce the risk of fraud and protect customer trust.
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.
What payment scams should businesses watch out for?
Businesses can face various types of payment fraud, such as the following:
- Friendly fraud or chargeback fraud: A customer makes a legitimate purchase and later disputes the transaction. Keeping detailed transaction records can help businesses respond to disputes.
- Invoice scams: Fraudsters pretend to be suppliers and send false invoices. Always verify changes to payment details directly with the supplier.
- Account takeover fraud: Criminals gain access to a business account and make unauthorised transactions. Strong login security and two-factor authentication can help reduce this risk.
- Triangulation fraud: Fake websites or listings with cheap products are used to attract customers. The fraudster may use stolen payment information to fulfil an order, leaving both the customer and legitimate business exposed.
What scams should consumers watch out for?
Consumers can also be targeted by increasingly sophisticated scams, such as the following:
- Card-not-present fraud: Stolen card details are used to make online purchases.
- SIM swap scams: Criminals transfer a phone number to another SIM to intercept authentication codes.
- Store account takeovers: Stolen login details are used to access an online shopping account.
- Fake ecommerce sites: Fraudulent websites imitate legitimate stores to steal payment information.
- SMS phishing: Fake messages direct consumers to websites designed to capture personal or payment information.
Consumers should check website addresses carefully, avoid suspicious links and use unique passwords and two-factor authentication where available. They should avoid making payments over unsecured public WiFi; mobile data or a trusted private network is safer.
How does Payfast support secure payments?
Payfast provides a secure online payment platform designed to help businesses accept payments while managing payment processing securely.
Its payment environment includes secure payment pages, 3D Secure authentication, encryption, fraud detection and tokenisation. Payfast also integrates with more than 70 shopping-cart platforms, including Shopify and WooCommerce, and supports a wide range of payment methods.
This means businesses can offer customers different ways to pay without having to build every payment security measure themselves.
Protecting every online transaction
Online payment security is about more than choosing a payment method. Businesses must implement secure payment processing, appropriate security measures and good internal practices, while consumers need to remain alert to scams and protect their accounts.
Using a trusted payment platform can add important layers of protection while making online payments easier for customers. Payfast combines multiple payment methods with security features designed to help businesses process payments more securely.
Frequently asked questions
Here are a few commonly asked questions relating to online payment security solutions.