The security landscape grows broader and more complex by the day. Constantly evolving threats to point of sale (POS) security create a significant challenge for ISVs and VARs working to stay one step ahead of bad actors and fraudsters. However, it also creates a big opportunity for you to provide much-needed solutions to protect your clients. Educating merchants about point of sale security and helping them implement the best solutions for their operations will help you build stronger customer relationships and grow your business.
Must-Have Point of Sale Security Features
Different types of merchants face different risks. For example, high cash volume businesses need secure cash management systems. However, any merchant accepting electronic payments needs the following:
- Physical Security for Card Readers
With spiking numbers of card skimmers that bad actors install to steal card data at ATMs, point of sale terminals, or other locations, it’s essential for you to educate merchants about this trend. The number of debit cards compromised as the result of skimming activity reportedly spiked 96 percent in 2023 from the previous year, with bank ATM compromises increasing 90% over the same time.
- Multifactor Authentication
Store employees, VARs providing managed services, and other business partners should use multifactor authentication (MFA) to access store systems. Using two or more factors for login including personal identification numbers, codes sent via email, text messaging, passwords, and smart cards, trips up actors that have stolen only a password or passcode. MFA helps to ensure that only authorized users can interact with store systems and sensitive data.
- Point-to-Point or End-to-End Encryption
Point-to-point encryption (P2PE) or end-to-end encryption (E2EE) protects cardholder data from the time a customer inserts or swipes a card at a payment terminal until it reaches the processor. When encrypted, the information is useless to a hacker looking for monetizable payment data. P2PE also takes data out of PCI scope, protecting data but also making compliance easier for merchants.
- Tokenization
An effective point of sale security solution is replacing actual payment card numbers and cardholder data with tokens, which are randomly generated alphanumeric characters. Discuss the value of cross-platform tokens with your clients, including remembering customers as their shopping journeys take them from one channel to another, for example, buying online and returning in-store. Tokens are also a secure way to set up recurring payments or subscriptions.
- Cameras
Surveillance technology can provide an internal safeguard against employee error in processing payments or properly following policies. Electronic eyes on the cash also provide proof of any criminal attempts by would-be thieves that can prevent shrinkage and losses. Video footage can also serve as a valuable training tool for new employees.
- Segmented Networks
Inform your clients that systems that use payment data should have a separate network from other internet access such as courtesy Wi-Fi for customers. They are a valuable measure to ensure hackers cannot easily access payment and customer data. No matter a company’s size or targeted market, the additional point of sale security provided through segmentation assures more rigorous safeguards.
Maintain the Right Perspective About PCI Compliance
The battle against threat actors, hackers, and fraudsters is constant and can only be effective with proper PCI compliance. That involves more than just checking boxes. In the process of creating a secure environment that protects cardholder data, merchants’ businesses also benefit from building customer trust by implementing strong and trustworthy point of sale security measures. Strict compliance with PCI security standards can also keep a business viable. Data breaches result in detrimental impacts to businesses, including a loss of customer confidence and sales, in addition to fines, penalties, and higher subsequent costs of compliance.
Because the threat landscape has continued to evolve, PCI has migrated from the Data Security Standard to the Software Security Framework (SSF). PCI made this move to provide more agility to protect from increasingly more complex attacks. Additional benefits include expanded functions like fraud monitoring and authentication. ISVs and VARs should recognize that this approach makes it more important than ever for merchants to work with an experienced solutions provider to ensure PCI compliance and the highest degree of cardholder data security.
Build Your Security Expertise Through Partnership
With your focus on providing the POS solutions that meet your market’s needs, it can be challenging to keep up with changing threats to point of sale security. But fortunately working with a payment partner can complement your expertise with the security knowledge and solutions you need.
Datacap’s team is ready to assist you as you provide total solutions to merchants that include POS software, payments, and point of sale security. Contact us to learn more.
