The businesses around the globe are moving online mode considering the operational costs, broad market access, better management, and more. The last decade saw most of the established businesses betting on online sales, though some of them are the most established players in the traditional market. For instance, Walmart, the biggest departmental store network in the United States, launched its online store in 2000 and showcased excellent growth, nearly 50 percent per annum, over the years.
The online business model of companies is facing some critical challenges in recent years. If they could not address these challenges on-time, it can severely damage their business and reputation. The most prominent challenge is keeping the personal and payment details of customers secure. Companies spend many billions of dollars to keep the data and information safe, especially considering the cyber-attacks targeting big corporations in recent years.
Let’s look at how the online industries keep your personal and payment data secure.
Encrypted Transaction and Web Monitoring
All the professional businesses use a trusted encrypted transaction channel to facilitate the payment and update the information. The companies use SSL certification to secure every transaction. It means that your card details and transaction data are completely protected and safely sent to the servers of the businesses. In reality, SSL encryption makes a special layer of security between you and the server of the company.
Online companies encourage their customers to use a strong password or password managers to avoid hacking attempts by guesswork. Additionally, the companies ask the customers to change their passwords at regular intervals of time to prevent any compromise. Also, many companies strictly monitor the online transaction pattern of each customer and notify anything found suspicious in the particular accounts.
Two-factor Authentication and Alternate Payment Options
Many online businesses employ a two-factor authentication option in their network and ask the customers to make their transactions and personal data secure. In such scenarios, you have to make authentication for the second time apart from entering your password. In most cases, the businesses send out a one-time passcode as an added security option to secure the data and transactions of customers.
Additionally, many online businesses give more payment options, like PayPal payments, to customers. These additional payment options are highly relevant for industries like the online gambling industry. For instance, online gaming sites accept various types of payment options and help customers to be confident in their transactions. PayPal allows people to use their PayPal amount for playing games directly. Since PayPal is a trusted name in all sorts of payments, the gamblers get the assurance of high security. The online gaming sites that accept PayPal confirms that the payment option not only helped them to get new business but improved their brand reputation as well. Therefore, most online gaming sites give exclusive bonuses to PayPal users to encourage transactions.
PCI and Tokenization
Tokenization is an attempt to store the credit or debit card information of a customer in the encrypted form on the server. During the process, the sensitive data and information are replaced by some string of characters, generally called as tokens. Therefore, when a transaction is initiated, it encrypts the data using tokenization and sends it to the centralized server. At the same time, the merchant receives a unique number. From then, the token is being as the substitute to card details for the transactions. It helps online businesses to avoid chances of payment fraud.
When malicious hackers are trying to find loopholes in the networks, providing flawless and secure services is the identity of online businesses. That is the reason why online retailers like Amazon spends billions in research on data security.