Businesses need to invest in a Secure Payment System, to navigate this world of frequent digital payments.
It is really a response to cyber threats, especially as rates rise, and the nature of these crimes changes as the internet changes. It’s harder for fraudsters to do their thing when a Secure Payment System gets involved. Similarly, it’s really hard to gain unauthorised access to a Secure Payment System. It is, after all, secure.
It’s pretty clear, then, the importance of a Secure Payment System. But, if you want to know more about it (and particularly if you want to know what the benefits of Secure Payment Systems are in the competition industry), that’s all easy enough to sort. It’s what we’re here for.
What Is A Secure Payment System?
It can be good to have a few payment options available for customers to use. Equally important (if not more so!) is that they’re safe.
That’s where Secure Payment Systems come in.
A Secure Payment System is a piece of infrastructure—usually built into digital spaces like websites—that exists to safely process transactions between customers and companies.
They’re different from other payment systems and methods because they’re designed to safeguard card details and banking information from dangerous third parties. They’re also designed to make the journey of the money from one account to another as smooth and safe as possible, reducing the risk of interception.
It’s easy to see how they differ from non-Secure Payment Systems, then. But what are some examples of less secure methods?
Well, any phone-initiated payment, or direct bank transfer, brings with it more risk than any Secure Payment System. It’s not a guarantee that something will go wrong; it’s just a more vulnerable position to put your funds in, and—if you’re a business—it definitely doesn’t build trust with your customers.
More on that in a mo. First, let’s think about how these Secure Payment Systems work.
How Secure Payment Systems Work
The definition of a ‘Secure Payment System’ incorporates a few potential options. Here they are:
1. Encryption and Tokenisation
A term you’ve probably heard because it gets thrown around a lot these days.
Encryption exists to purposefully confuse and scramble data, so that it is only legible to the person who sent it and the person who receives it. Tokenisation, similarly, confuses the code as it passes between machines, replacing certain characters with a ‘token’: a random, unique character, which cannot be edited by third parties.
On WhatsApp, for example, your messages are encrypted; they’re only for your eyes and your recipients’, too. When it comes to secure payments, the system might, instead, scramble your credit card number to keep that personal information where it belongs and avoid secret third parties getting hold of it.
2. Payment Gateways
A secure bridge between the customer’s bank and the merchant’s website and bank account. Along the humble gateway, financial information travels fast, so that all parties are verified.
It will check the customer’s card details and make sure everything is as it should be, and there are enough funds available in their account.
Only then will the payment be authorised.
3. Multi-Factor Authentication (MFA)
As a customer, you’ll probably have experienced a bit of MFA lately. It’s basically the process where you have to verify your identity before you pay for anything or log in to certain sites.
For example, you’ll probably have experienced the Face ID/Touch ID pop-up when you use your digital wallet or banking app.
You might also have had it where you log into Google, and it sends a code to your phone, which you have to type in on the open browser, to verify that it is, indeed, you who’s logging in.
Even your PIN code is a method of MFA, used when you pay for things in person.
Common Types of Secure Payment Systems
Apple/Google Pay
Apple and Google Pay are mobile payment services which allow users to quickly and easily make payments using their phones, be it via their wallet, an app, or via the web.
They simulate a credit or debit card with chip and PINs attached, and function as a contactless sale. But you can also use it when online shopping; it makes things easier because it’s pre-saved your bank details, so it’s just a matter of clicking a button, and then validating your identity with your face, fingerprint, or phone password.
You’ll see, then, how secure Apple and Google pay are. It requires validation. But, behind the scenes, there are multiple security layers, too.
For example, Apple Pay doesn’t transmit your credit card information during transactions. It generates a unique Device Account Number, specific to your phone and your bank card. That goes to the merchant, and no one ever sees your card details. It’s a way of tokenising your transaction, like we talked about earlier.
PayPal/Stripe
PayPal and Stripe are what’s known as Point-of-Sale (POS) systems. They use MFA, notifications, and facial/fingerprint recognition where necessary. There are encryption procedures in place behind the scenes, and these sites ensure that merchants cannot see a customer’s card details, beyond the last four digits of their credit card number.
Chip and PIN Technology
Ah, yes, the OG of Multi-Factor Authentication. When you buy things in person, you have to type in your PIN once you reach a certain number of contactless payments, right?
Even contactless payments use the same encryption devices as typed-PIN interactions. The ‘Chip’ bit refers to the microchip in a credit/debit card, which is where unique information about customer transactions is stored. That keeps everything separate, safe, and secure.
DNA Payments
DNA Payments are Zap’s partners in all things payments. They exist to be invisible: by which we mean, if all goes well with your payments, customers will never know how you did it. It’s like magic. They only notice when things go wrong. That’s why DNA is so good.
They support companies to offer secure transactions in person (via the till and card machine), via virtual terminals and websites, and via Payment gateways, like ours…
Zap Pay
Zap Pay is our very own payment gateway. The best thing about it is that it’s created with competition businesses in mind. It saves your players time by avoiding the need for manual bank transfers, but it’s also completely safe and secure, requiring a bank validation process to take place during each withdrawal.
That not only ensures everyone is who they say they are, it also makes sure that there’s enough money in the customer’s account before completing the transaction, protecting your business.
Benefits of Secure Payment Systems
The first benefit of Secure Payment Systems is fairly obvious: it’s safer. These systems protect your customers, preventing identity theft. That benefits your business, too, because it helps you avoid the legal repercussions of identity theft, fraud, and associated chargebacks.
What’s more, we talk a lot about how there’s a lot of mistrust around the competition industry.
That means building trust around your business is more important for competition sites than for anyone else. Having a partnership with a recognisable Secure Payment System acts as a stamp of approval. It demonstrates a commitment to your players’ safety, which fosters a nice atmosphere and promotes engagement.
It’s also legally safer. By investing in a Secure Payment System, you comply with industry regulations, which rightly prioritise the safety of your customers. It really is better for everyone.
But Secure Payment Systems go beyond safety. They also make for a smoother customer experience. A good payment gateway is invisible. It’s a few seconds of validation, so that everyone is safe. It doesn’t hold the customer back, and it doesn’t require them to type in their details over and over again (you know, unless they want to).
People are more likely to commit to a purchase when they don’t have to use all that brain power typing in their credit card details, checking their banking app to see if they have the money, and coming back to the site. Easier payments mean more payments! Who doesn’t love that?
Risks Without Proper Payment Security
The internet is, usually, a wonderful place. But it has opened up the door to new and varied crimes which you put your business (and players!) at risk of, if you don’t invest in Payment Security.
Fair warning, this part’s gonna be a bit doom and gloom. It is, however, important to bear in mind.
Secure Payment Systems can help you avoid:
Identity Theft
Everyone is unique! There is only one of you! Or, at least, there should be.
The internet makes it a bit easier for criminals to steal someone’s identity.
If bank details aren’t encrypted, criminals can get hold of them and make payments pretending to be the holder of that card. That’s identity fraud.
Similarly, if your site doesn’t validate that customers are who they say they are, identity fraud might be happening right under your nose.
Victims of this crime may lose money, of course, but it can also lead to problems down the line if they want to get a loan or a mortgage.
And, if you’re a business, you want to protect your customers from experiencing this sort of thing on your site. Firstly, because we know you’re a nice person and that stuff SUCKS. Secondly, because it can have legal repercussions for you and your business, you and your business might get caught in the crossfire of blame.
Data Breaches
Insecure payment systems can put your business at risk of a data breach, too. Data breaches happen when information on the site is easy for secret third parties to access. That’s why encryption and tokenisation exist: to confuse them, and make it really hard—or, indeed, impossible—to access that information, and make sense of it.
A data breach is not a one-off issue. It can lead to significant financial loss for your business, and also reputational damage, as customers whose data has leaked place blame on your brand for not taking the necessary steps to protect it.
Payments? as Fast as Lightning
But it’s not all bad news! We promise!
There are good people out there, and we should know because we are them. That’s why Zap Pay exists.
We know that competition sites face mistrust, and that social proof (as great as it is) can only get you so far.
We also know that sites like yours need a slick, easily understandable payment process to incentivise continued engagement with your competitions. After all, people who go through a load of faff trying to secure a few competition tickets aren’t likely to come back, right?
That’s why Zap Pay is made with you lot in mind.
The benefits are endless, but here are some:
1. It’s safe and secure – players undergo validation processes every time they withdraw money
2. It’s easier for them – there’s no need for customers to chase where their funds have gone, and where their tickets are. Everything is smooth and simple with Zap Pay.
3. It’s easier for you – you don’t have to manually transfer money to your players, something which is both BORING and insecure. Zap Pay will handle that for you
If that sounds good to you, check out our page on Zap Pay.
Or! If you want to talk to the lovely people who made it happen, head over to our website to get in touch.
