Top payment security tools South African businesses should know about

5 top payment security tools in South Africa for SMEs

The disadvantages of not using security tools to secure payments go beyond loss of revenue and reputational damage; your business could also be blacklisted from card networks. This means you’ll forfeit the ability to accept card payments, which could lead to halting operations.

So, how do you protect yourself from such threats? Here are the top five payment security tools to implement in your business.

1. Firewall

A firewall is a security system that acts as an obstacle between a trusted internal network and a suspicious external one. After setting up your business’s security rules, the firewall monitors, filters, and controls network traffic coming in and out based on those predetermined guidelines.

You can have a hardware or software-based firewall, or a combination of both. It protects your payment systems and customer data from threats such as hackers and malware. Some core firewall features include network segmentation, access control, and intrusion detection.

As a digital gatekeeper, the firewall will block unauthorised access and malicious traffic. It will also prevent unwanted software, like viruses, from entering your business’s system. A firewall also helps you stay compliant with data protection industry standards, and thanks to its agility (as a cloud-based service), operating a firewall system does not have to break the bank. 

Small businesses that do not use a firewall are at great risk of suffering major losses, financial and otherwise. Downtimes cause operational disruptions, and leaked customer payment details can lead to legal repercussions such as lawsuits.

2. Fraud detection

Fraud detection involves identifying and preventing suspicious activities that may be a result of illegal actions. It’s a system that every secure payment processor must have. Without it, transactions are susceptible to intrusion, leaving the business and customer data at peril.

This technique utilises preset rules and machine learning algorithms to identify and filter out suspicious activity. These tactics include automated learning, 3D Secure (3DS), proxy detection, and risk scoring to monitor unusual patterns, track behavioural analytics, and spot anomalies.

By doing this, the system poises itself to detect irregularities or deviations from normal payment processes. This, in turn, reduces the risk of financial loss, improves compliance, and enhances customer satisfaction. Without fraud detection, you could be staring down the face of losing out to your competitors, being hit with regulatory penalties, and dealing with demoralised staff.

3. Encryption

Encryption transforms private customer information into code using advanced algorithms that prevent unauthorised access, tampering, or theft. There are two types of encryption: symmetric and asymmetric. Symmetric is when the same algorithm is used to “lock” and “unlock” data, while asymmetric uses a shared key to encrypt, and a private one to decrypt the information.

Most businesses use these two standard encryption protocols, such as Secure Sockets Layer (SSL) and Transport Layer Security (TLS), to secure data transmission. These protocols employ a combination of symmetric and asymmetric encryption to safeguard data during transit.

By changing unreadable data into readable data only by authorised access, encryption provides your business transactions with the confidentiality they need to keep customer details safe. The encryption method’s strength is determined by the algorithm and the length of the security key, available as a 128-bit, 192-bit, or 256-bit key using the Advanced Encryption Standard (AES).

With encryption, your business will remain compliant with industry standards such as the Protection of Personal Information Act (POPIA). You’ll reduce data breach risks, protect your business’s intellectual property, and even build customer confidence and trust.

4. Authentication

Authentication is by far the most popular method for securing online payments. It’s a simple process or action used to verify the user’s identity. This process is commonly used at an online checkout page, via a payment link, or when users add payment details on a payment gateway.

Many South African customers are familiar with Single-Factor Authentication (SFA), which requires only one form of identification, such as a PIN or password. But, there’s also Two-Factor Authentication (2FA), which requires two forms of identification, such as a PIN or code, as well as a one-time password (OTP). Multi-Factor Authentication requires three or more forms of identification.

By using authentication, you set a layer of protection for both your business and your customers, by making sure the person making the transaction is an authorised user. It enables secure integration with third-party tools, like payment gateways, and fights off payment fraud threats .

5. Payment Card Industry Data Security Standard (PCI DSS)

The Payment Card Industry Data Security Standard (PCI DSS) is a set of global standards that any business or organisation that processes, stores, or transmits credit card information must adhere to. It operates under a 12-point guideline that ensures the secure use of this sensitive information.

With PCI compliance, you benefit from many security measures such as strong access controls, regular monitoring, and data protection through encryption, to name a few. One of the main factors to consider when selecting a payment gateway is that it is PCI DSS compliant.

Without it, your business may face hefty penalties, potentially lose the ability to process card information, and leave sensitive information at risk of data breaches and cyber attacks.