Protecting your online business: Essential payment security tools

In our fast-paced digital economy, protecting customer data is more than just good practice, it’s essential for maintaining trust, staying competitive, and safeguarding your finances. As ecommerce continues its expansion, the risk landscape evolves just as quickly. Cyber criminals are using increasingly sophisticated methods to target Australian businesses of all sizes with fraud, data breaches, and account takeovers.

The scale of this threat demands action. The World Economic Forum has highlighted the urgent need for global measures to combat cybercrime, citing a forecast that predicts the cost of cybercrime will skyrocket to $10.5 trillion annually in 2025. This staggering figure underscores the pressure on businesses to implement comprehensive payment security strategies that protect both customer information and operational resilience.

Masseh Haidary, CEO at Global Payments Oceania says, “In this digital-first economy, trust is the real competitive advantage. Speed matters, but security is crucial. Businesses and their customers want to know their information is secure without giving it a second thought. That’s why ecommerce systems should be secure by design and built into the entire experience, not tucked away in the back end. Businesses that invest in robust, intelligent systems – from PCI DSS compliance to AI-powered fraud prevention – aren’t just safeguarding transactions, they’re building long lasting confidence. And when customers feel safe, they stay connected.”

The rising financial threat to Australian businesses

The rising cost of cybercrime is creating a major financial and operational threat, particularly for small and medium-sized businesses (SMBs) in Australia. The Australian Institute of Criminology notes that SMBs are often disproportionately affected, lacking the resources required to recover quickly from a cyber incident. Given their reliance on digital transactions, payment fraud remains the top concern.

The 2024 Australian Payment Fraud Report confirms this urgency, revealing an alarming 33% rise in Card-Not-Present (CNP) fraud, which reached $688 million in 2023 and accounted for 90% of all Australian card fraud. This surge was largely driven by a 51% jump in offshore CNP fraud, which, for the first time since 2017, exceeded domestic fraud. Despite total spending on Australian cards rising by 8% in 2023, overall card fraud increased by 32%, underscoring the relentless growth of this threat.

Patrick King, Chief Technology Officer at Global Payments Oceania explains, “Many small and medium businesses don’t realise how vulnerable they are until it’s too late. A key issue we see in the payments space is businesses assuming that basic fraud screening is enough. With online fraud methods evolving so quickly, businesses should consider layered payment security solutions. Consider an approach that includes PCI DSS protection, tokenisation, real-time fraud detection, and AI-driven risk analysis, to stay ahead of threats. We recommend businesses apply the Australian Signals Directorate Essential Eight as a minimum.”

Key payment security tools for every business

1.PCI DSS Compliance
The Payment Card Industry Data Security Standard (PCI DSS) is the essential global benchmark for securing card payment systems. It sets clear guidelines for how businesses must securely store, process, and transmit cardholder information. Achieving and maintaining PCI DSS compliance is non-negotiable for any business managing online payments, as it significantly reduces risk of data breaches.

2. Tokenisation and Encryption
These are pivotal technologies for shielding sensitive data. Tokenisation replaces actual card details with a non-sensitive “token.” If intercepted, the token is useless to a fraudster. Encryption converts sensitive information into unreadable text, adding another layer of payment security.

A 2024 statement from Visa highlighted the success of tokenisation, noting it has significantly improved both payment security and operational efficiency, with tokens used in 29% of all Visa-processed transactions. This adoption reflects growing confidence in it as a secure payment method that mitigates fraud risk and delivers a smoother customer experience.

3. Fraud Prevention Tools
Advanced fraud prevention is indispensable for mitigating chargebacks and combating fraudulent transactions. These tools use sophisticated techniques like transaction screening, device fingerprinting, and behavioural analysis to spot and block suspicious activity in real-time. By leveraging this combined approach, businesses can identify anomalies and prevent fraudulent transactions before they impact their bottom line, helping safeguard their revenue.

4. 3D Secure 2.0 (3DS 2.0)
This online security protocol, established by card networks, improves security for CNP transactions. 3DS 2.0 adds a layer of authentication while aiming for a low-friction customer experience. It allows banks to perform real-time risk analysis during checkout: if risk indicators are low, the transaction proceeds instantly; if the risk is high, it requests a swift verification, such as a biometric scan or a one-time password.

“The evolution to 3DS 2.0 provides an improved experience for end users. When combined with AI-driven fraud detection tools, 3DS 2.0 creates a seamless yet secure payment experience. Fraud prevention systems analyse transaction patterns and flag high-risk payments, while 3DS 2.0 steps in to verify the customer’s identity only when needed. This reduces friction for legitimate customer transactions and blocks fraud activity early. At Eway, we integrate the 3DS 2.0 as part of our broader fraud prevention toolkit, ensuring businesses can protect their revenue without compromising their customer’s checkout experience,” says Pat.

The future of payment security

The online payments landscape is constantly and quickly evolving. Advances in AI and machine learning are significantly enhancing fraud detection by analysing transaction data in real-time, instantly identifying complex fraud patterns. Additionally, secure and convenient methods like biometric authentication (fingerprint or facial recognition) are gaining traction for online transaction validation.

A key focus for Australian businesses is the seamless integration of payment security measures with their payment platforms. Online businesses require payment solutions that not only provide top-tier security but also integrate effortlessly with existing systems to guarantee smooth customer experiences.

Pat explains, “AI-driven fraud detection and biometric authentication have improved the confidence in identifying legitimate transactions. Businesses that integrate these technologies with their payment platforms will be better positioned to manage the evolving cybersecurity threats. But security shouldn’t come at the cost of convenience for customers. The key is that these smart tools operate in the background, identifying risks without slowing down legitimate transactions. That’s why we focus on solutions that prioritise providing a frictionless checkout experience for customers.”

Cyber health checks for SMBs in Australia

The Australian Government’s 2023 Cyber Security Strategy emphasises the need for proactive protection of small and medium-sized enterprises (SMBs). A key initiative is the introduction of voluntary cyber health checks for SMBs. These assessments are designed to help businesses identify vulnerabilities, implement stronger defences, and build resilience against cyberattacks. For online businesses, participating in such programs can significantly enhance their payment security posture, safeguarding customer data and ensuring continuity.

By encouraging SMBs to undergo these checks, the government aims to strengthen the entire financial ecosystem, ensuring that these businesses, often the backbone of the online marketplace, are not left vulnerable to cybercrime.

Staying secure in a competitive marketplace

For online businesses, the security stakes have never been higher. By implementing PCI DSS-compliant systems, leveraging advanced fraud prevention tools, and adopting tokenisation and encryption technologies, Australian businesses can protect their customers and significantly reduce risk of security breaches.

“Cybersecurity isn’t something businesses can set and forget. Bad actors are constantly adapting and businesses need to be aware of these. A proactive approach that incorporates people, processes and technology, and being able to rely on trusted partners, is essential to provide holistic security coverage,” says Pat.

Don’t wait until it’s too late. To implement smart, layered security tools and payment solutions necessary to protect your online revenue, contact our team today.