By Bill Lodes, EVP, Business Development & Strategy, First American Payment Systems
The growth of data breaches and fraud has been a pressing issue within the payments industry for several years and many are concerned in regards to payment security. It can be difficult to stop a breach or fraud from occurring, but there are solutions that should be implemented for protection. Despite this reality, many ISVs and VARs still aren’t sure about the best ways to reduce their chances of security issues that may arise in the future. Partnering with a payments processor can help. Here are a few payments security tips that all ISVs and VARs should incorporate:
- EMV. The October 1 liability shift is now in the past, and ISVs and VARs are realizing the imperativeness of becoming EMV compliant. EMV technology is not going anywhere, and delaying adoption could cause detrimental harm to businesses in the long haul. Since the integration of EMV can be confusing, it makes sense for an ISV or VAR to connect with a payment processor. A payment processor can provide ISVs and VARs cutting-edge technology on top of industry knowledge in regards to EMV that can be quite helpful. VARs and ISVs also need to communicate to their customers the importance of implementing EMV-capable solutions. They can encourage how upgrading products to EMV-compliant software will protect and prevent their business from possible future fraudulent situations.
- PCI DSS Compliance. Since any merchant that accepts credit card payments must operate its business within the security guidelines of PCI DSS (Payment Card Industry Data Security Standard), it is imperative that all customers of ISVs and VARs comply for preventative security measures. It is necessary to onboard these customers to a PCI compliant payments platform, taking the burden off of ISVs and VARs to protect their customers themselves. By shifting the liability of processing cardholder information to a payments partner, ISVs will be able to extend to their customers secure processing solutions that surpass standard compliance requirements.
- Tokenization And Encryption. It is critical for ISVs and VARs to secure the processing, transferring, and storing of payment card data that their customers receive. Tokenization is one solution that replaces a debit/credit card number with non-sensitive data and transcribes it into a random sequence of characters. As mobile payment technology continues to grow, tokenization will become a great asset to stop fraud and data breaches from occurring as it prevents cybercriminals from accessing credit card data and using it for fraudulent purposes.
Point-to-point encryption (P2PE) is another payment security solution, which transfigures confidential credit card data into an obscure code upon being swiped during a transaction. Your payment partner can integrate P2PE within the customers POS systems and/or terminals on behalf of the ISV or VAR and therefor provide risk reduction and improved security.
- Preventative Measures And Education. Security when it comes to payments can be a tricky task. We are here to help. In order to not only protect yourself but also your customers, ISVs and VARs can partner to help safeguard their software and solutions. Allow us to give you the guidance, support and product solutions to combat breaches and fraud.
With recent breaches at major organizations such as Target and Home Depot, it became evident that not taking preventative security measures could cause detrimental harm. ISVS and VARs can lean on us to educate them on the main security solutions available so in return you can educate their own customers. As a result, an ISV or VAR can provide multiple seamless integrated security solutions for your customers while still maximizing your revenue.
Experiencing a data breach or instance of fraud is not an ideal situation to be in. However, it is important to identify which security measures can take place to help prevent such instances from occurring. By integrating technologies and your knowledge, ISVs, VARs, and payment processors can partner together and provide heightened security solutions for their customers for years to come.
For information on partnering with First American, visit https://www.first-american.net/VAR/GrowYourBusiness.