This is the second part of the post. To read the first part click here
As we mentioned earlier, there are five ways to secure online payments. Today we will explain the remaining methods.
Set two-factor authentication
Two-factor authentication (2FA) are tools that provide a more sophisticated level of protection to customers. Companies such as Google or Facebook use this method to ensure that their users’ data is safe.
How does two-factor authentication work?
To enter an account
- The user must complete the username and password
- You will then receive an OTP code and you must enter it in order to prove your identity
To make a payment
- The user must write down their card details (card number, cardholder’s name, expiration date and CVV)
- You will then receive an OTP code via SMS or online banking application that you must write down to prove your identity.
2FS is an additional security layer that is not very complicated, which guarantees that only the account or cardholder can access the account or make a payment.
Tokenization means replacing a primary account number with a sequence of randomly generated numbers.
Why is tokenization useful?
The tokenization process is very elaborate and makes it impossible for cybercriminals to hack the token. At the moment the token replaces the card number, cybercriminals cannot reverse the process.
How does tokenization work?
- The consumer initiates an online payment
- An acquirer receives a token from the merchant
- The acquirer directs the token to the payment network
- The payment network sends the token to the card issuer
- The issuer returns the token and authorization
- The acquirer receives the token and authorization
- The transaction is completed.
Cybercrime causes companies to lose a lot of money, so it is crucial to have a good system to secure online payments. Before hiring any company, check that you have the aforementioned.