What to look for in POS systems: security

Over the past few days, we’ve been thinking about what makes a great Point of Sale system. So far, we’ve covered what POS systems are, why you should consider a multi-channel solution, the value of simplicity, how to keep costs down and how your system can offer instant settlements.

Over the next couple of days, we’ll also look at:

1. ESG
   
2. Minimised hardware
   
3. Integration with your existing payment methods and administrative systems

But for now, we’re focusing on perhaps the most important factor in choosing your business’s retail POS system: security. When it comes to keeping your customers’ money and data safe, you can’t take any risks.

Are merchants taking necessary precautions?

Despite the best intentions of thousands of companies, in 2021 alone, the financial data of more than 40 million people in the UK was compromised. Unfortunately, the steps and systems currently in place aren’t always enough.

And mistakes like that can cost you hugely: not just in large fines, but in the customers you’ll inevitably lose and the irreversible PR damage.

Of course, we understand that implementing the necessary security measures can cost time, money and resources. For example, meeting the Payment Card Industry Data Security Standard (PCI DSS) means proving you fulfil the lengthy requirements for all entities that process, store, or transmit payment card information.

But regardless of how tricky it may be, protecting your customers and your business is a non-negotiable. When you’re looking at POS systems, security must be front of mind. Everything from where displays are placed and what information appears on them to the payment processing companies, needs to be carefully thought through.

A simpler solution for merchants

You can save yourself a lot of risk, hassle and stress by using Open Banking payments. Because the money moves directly from one bank account to the other, you don’t need to collect, process, store, or transmit payment card information at all, meaning the PCI DSS doesn’t apply.

Instead, customers use their own online banking to pay money directly into your bank account. You and your customers benefit from the bank’s security measures, and no sensitive payment information is put at risk.

Heightened security for your customers

Because instant payments don't require your customers to submit sensitive financial information like card details, bank account numbers or sort codes, they’re much safer.

The authentication and approval of each payment is carried out by the customer’s own bank, meaning they use the same security as with any other payment they make directly from their bank. Typically, this means stringent security features like biometrics (their face or fingerprint ID), and any other authentication they choose to use – think one-time passcodes or unique verification links. This Strong Customer Authentication (SCA) is inherent in Open Banking pay by bank payments.

Wonderful never asks customers to share their bank login details with anyone other than their bank. They’re in charge, choosing what data to share, when to share it and for how long.

How secure is Open Banking?

Open Banking uses software that has been thoroughly tested and implements a number of different security systems.

Of course, Open Banking services such as Payment Initiation Services (PIS) – like Wonderful – are regulated by the Financial Conduct Authority.

Only online payment systems regulated by the FCA or a European equivalent can offer Open Banking solutions. Open Banking users are also covered by data protection laws and the Financial Ombudsman Service should any issues arise.

Open Banking itself is also subject to strict standards introduced by the Competition and Markets Authority (CMA).

In short, you can rest assured that Open Banking payments are safe and secure for you and your customers. If you want to protect customer funds and data, they’re by far the best option.

Embrace the future of Point of Sale systems

To future-proof your business, provide Open Banking instant payments at the point of sale.

Not only will you get the newest and safest payments technology, but you’ll enjoy a whole host of benefits like:

• Increased satisfaction for staff and customers
• A streamlined checkout process
• Boosting sales
• Reducing costs
• Instant payments
• Heightened security
• Inherent CSR

Plus, our friendly team is on-hand to support you through the simple onboarding and integration process, so that you can have instant bank payments sitting alongside your existing methods in no time. Get started today. Cancel anytime.

And make sure you come back soon as we look into how your Point of Sale solution can strengthen your ESG positioning.