Monday, 9 July 2018

Security aspect of Third Party Payment

Nowadays we are talking about the digitization of every transaction that we perform via any medium like desktop, mobile etc. Due to the popularity of the internet and its vast usages most of the companies are willing to move into e-businesses and expand their business at a rapid rate, and for online payments, all the company must use of payment gateways. For every payment transactions, we need five parties for making it successful transaction. They are client, merchant, financial institution, acquirer, and the payment gateway. A payment gateway is a service that acts as an intermediary between the merchant's website, issuer and the acquirer. But the question is what about the security of personal information and financial details? With result companies and the client wants some kind of security proof payment gateway system. Financial data management does not need to be this stressful. Many of these smaller businesses, however, rely on third-party companies to perform their payment processing and data management, further complicating risk assessment. Digital transactions can be performed by third party involvement or direct to the company. Some of the third party gateways are payU money, Cc Avenue, PayPal, payU etc. In India we can have different types of shopping supports provided by third party payment gateway like credit and debit cards, net banking, bank transfer, EMIs, cash on delivery, wallets etc. Managing financial information is a dangerous business, and the past year has been marked by a number of significant data breaches.

In the year 2013, the different types of issues of the cashier system at a major retailer exposed information on 40 million debit and credit cards. Researches on payment gateway security consider different security mechanisms to enhance the security of transferring sensitive customer information. These mechanisms include security standards, protocols, hashing methods and encryption methods as follows.

Data Encryption: One of the most important and main security method used in payment gateways is the encryption of data. In data encryption when the customer enters their financial information like credit and debit card details, network attackers try to fetch that details payment gateway should protect them by the different network attackers. 

Secure Sockets Layer: SSL stands for Secure Sockets Layer. SSL is a secure network protocol used in web browsers and servers. Every time it demands certificate authentication. It creates a uniquely encrypted channel for transferring customer private data over public channels with that certificate authentication. 

Secure Electronic Transaction: SET stands for Secure Electronic Transaction (SET) and it’s a standard protocol which was developed by the Visa and Master card in cooperation with various other companies like Microsoft, Netscape and VeriSign. The SET transaction involves three main parties and provides full proof security to all three parties.

Public Key Infrastructure: This method introduced that secure mobile system. Payment gateways always contain sensitive information like pin code of credit card/debit card. So PKI protect customers from unauthorized users. PKI is a system to enhance the security of mobile commerce which consists of digital certificates, certification authorities and other registration authorities. 

Certification Authority: This security mechanism demands authentication from different authorities and developer Stephen Kent presented a new approach to enhance the security of payment gateway. 

Mr. Pramod Pandey
Assistant Professor
Department of Management Studies


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