Why payment security matters for your ecommerce business

Protecting your payment systems is essential. As more businesses conduct transactions online, the risks of fraud, data breaches, and cyberattacks have increased. Whether you’re just starting or have been in business for years, securing your payment system is critical to protect both your revenue and your customers’ trust.

The rising risk of cybercrime

Cybercrime continues to rise, affecting businesses of all sizes. The Australian Institute of Criminology reports that small and medium-sized businesses are disproportionately affected, as they often lack the resources to recover quickly from cyber incidents.

The 2024 Australian Payment Fraud Report highlighted a 33% increase in Card-Not-Present (CNP) fraud in Australia, which cost businesses $688 million last year. This particularly impacts ecommerce businesses where online fraud is becoming a larger threat.

Key areas to secure your payment systems

To protect your business, you should have a multi-layered approach. Here are a few key areas to focus on:

• Compliance with PCI DSS: Following the Payment Card Industry Data Security Standard (PCI DSS) ensures your payment systems meet global security requirements.
• Fraud prevention tools: Real-time fraud detection systems use algorithms to spot unusual activity and prevent fraudulent transactions.
• Encryption and tokenisation: These technologies protect sensitive payment data. Encryption turns data into unreadable text, and tokenisation replaces sensitive information with secure tokens.
• Real-time transaction monitoring: Ongoing monitoring helps detect suspicious transactions before they cause harm.
• Multi-Factor Authentication (MFA): Adding an extra layer of authentication helps prevent unauthorised access to your systems.

Why payment security is important

By securing your payment systems, you can:

• Build trust with your customers: Customers want to know their data is safe. Strong security practices reassure them and help maintain their loyalty.
• Avoid financial losses: Preventing fraud and breaches saves you from costly damages, including fines, lawsuits, and reputational harm.
• Stay prepared for new threats: As cyberattacks become more sophisticated, it’s important to regularly update your security measures to stay ahead.

What next?

To help you get started, we’ve created a payment security checklist for ecommerce businesses. This straightforward checklist covers the essential steps to secure your payment systems and reduce your risk of cyber threats.

Download the checklist now