Adopting a P2PE solution is a great start to securing your retail payments, but it isn’t the end of your security responsibilities as a merchant organization. You still need to enforce best practices for developing in-house applications that interact with the P2PE system, and control the in-store retail experience to ensure security at every level.
Here is a checklist that can help merchant organizations and their developers ensure the key parameters are in place when building apps that involve P2PE payment processing:
1. Be familiar with the PIM
The P2PE implementation manual (PIM) is an important document that is provided by a P2PE solution provider to their customers. Across the P2PE lifecycle, the PIM is the key responsibility of the customer. The P2PE provider is responsible for every other step of the payment cycle. Being familiar with the PIM will come in handy not just to troubleshoot minor day-to-day issues that arise, but to also respond quickly in an emergency. Knowing your way around the system is key to responding appropriately to an attack, and the PIM makes this possible.
2. Compliance needs real-time monitoring
There are many regulations to adhere to when handling payments. It takes a dedicated compliance process to ensure these regulations are enforced at every point of interaction in the app.
This is a challenge in today’s distributed cloud-native apps. There are numerous API-based integrations, and each of them should be reviewed to ensure they are secure. The system is dynamic, with integrations being added and removed on a daily basis. As the system changes, these events should be monitored for compliance. This requires real-time monitoring that takes into account new components as they’re added. Every event and activity that occurs in the app should be reviewed to enforce compliance and stored in an archive for auditing at a later point.
3. Update to the latest versions
Security patches are the main reason to keep your application components and PCI-P2PE version updated. With new threats arising frequently, the best thing you can do to enforce security is to keep your system updated. This includes software updates and replacing outdated hardware like PEDs.
4. Never store customer information in plain-text format
The whole point of P2PE is that it enforces strong defaults for encryption and decryption of card data and customer data starting from the PED (PIN Entry Device) and every step thereafter. If by any chance customer data or card data enters your system at any point of the payment cycle, or in any part of the application, it’s important to not store this data in plain-text format. This makes the data open for misuse. Instead, set up a way to monitor these events in real-time, and either encrypt the data or erase it automatically. Remember that these events should also be recorded for auditing purposes.
5. Get certified by an external QSA
Though P2PE systems put the onus of security on the P2PE vendor, you still need to do due diligence to examine your system regularly. An external QSA (Qualified Security Assessor) doesn’t just help to catch potential vulnerabilities, but can also advise on optimizing system performance to quicken transactions, simplify workflows, and reduce the scope of PCI DSS audits.
6. Exercise caution with new payment types
With the advancement of mobile technologies, new payment methods like NFC are emerging. They are opportunities to enrich the customer experience, but they also need to be monitored for new types of security threats. Emerging technologies are prime targets for hacking, as there may be loopholes that are yet undiscovered. Appropriate defense requires monitoring with the help of machine learning.
7. Leverage machine learning
Combating payment industry fraud is all about the use of data. To come out on top, merchant organizations and vendors need to be able to use data better than the criminals. The only way to counter today’s complex attacks is to use machine learning.
Machine learning lets merchants and vendors identify attacks from patterns and anti-patterns that emerge from data — which could be a new transaction from a strange location, suspicious IPs, a sudden rise in the number of transactions on a card, and numerous other parameters.
ML algorithms can help spot threats and identify the sources as well. When considering a payments vendor, assess their machine learning capabilities and consider using a third-party security solution if required.
8. Separate retail and online payments
P2PE is specifically designed for managing retail payments. It is not meant for eCommerce transactions. It’s important that you enforce clear separation of concerns here. If the same product is available in-store and online, you’ll need to maintain inventory status in real-time and system-to-system communication to avoid conflicts between the two channels. Additionally, a data breach in the eCommerce portal may just affect retail, and vice versa. Hence, security measures should be compartmentalized when needed, and comprehensive at other times.
In conclusion, P2PE greatly assures security for retail payments, but simply opting for a P2PE vendor doesn’t automatically guarantee security. It takes a shared responsibility between you as a merchant organization and your P2PE vendor. By following this checklist, you can ensure your P2PE lifecycle is compliant and secure end-to-end.