There's a revolution going on in the payment technology space right now, and on-premise old generation solutions are rapidly being replaced with software as a service solution. However, it's vitally important for businesses to embrace payment security innovations at the same time and at the same pace.
When the business is looking to embrace operative risk management as a whole, payment security is perhaps one of the most critical things to address. Although banks are offering their customers internet banking solutions with user authentication, they often fall short as payment files need to be manually transferred from various customer financial systems and approval flows for transactions are limited. It might also be possible that the users are authenticated in corporate web bank solutions, but they might have the option to alter payment details, a fraudulent act that would go unnoticed.
Risk management and transparency of the payment traffic process are essential for organizations. For this reason, it must be ensured that only authorized employees can make and approve payments.
The correct way to ensure that only the authorized employees can access the payment process is using more than one level of authentication methods. In addition to traditional user authentication, such as those used by corporate internet banks, Single sign-on (SSO) can be enabled to ensure the user's appropriate rights in the internal user directory. This ensures the right people have access to critical processes and data for the company.
Since user identification is one of the key features of risk management, one option is to add an extra layer of security provided by third-party applications or devices. The simplest way is to use mobile phones for two-factor-authentication. The external measures of safety ensure that for example a forgotten computer that is logged in the company network would not enable an unauthorized person to access and manage payments.
Combining identification and authentication with internal directories and external devices allow organizations to minimize the risks related to payment security.