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Recognizing Potential Fraud – 6 Things Luxury Services Should Offer in Terms of Online Payments 

Recognizing Potential Fraud

Credit card fraud in the US costs cardholders and merchants almost $30 billion yearly. People primarily use credit cards for online payments, where they are most vulnerable. If you want to provide luxury services, you can’t only offer exceptional service, unique products, personalization, and utmost flexibility.

You also need to ensure the high-end security sophisticated clients deserve. For example, if you offer luxury private jet charter services, your customers want to know they can book private jet with utmost safety and privacy. 

Here’s what you can do to bring your services to that level and build customers’ trust. 

1) PCI compliance 

PCI is short for Payment Card Industry Security Standard and refers to multiple requirements designed to ensure security with all companies that transmit, store, and process credit card information. 

The PCI Security Standards Council is an independent organization launched by JCB, Discover, Visa, MasterCard, and American Express. This organization manages and administers all PCI compliance requirements.

The PCI Security Standards Council gives organizations supporting materials and standards that include measurements, tools, and frameworks to achieve compliance and security. 

To achieve the PCI Data Security Standard, vendors need to comply with the following 12 requirements: 

  1. Set up firewalls to protect data
  2. Avoid using default passwords  
  3. Protect user card information 
  4. Use encryption when transmitting cardholder data
  5. Update all software 
  6. Create unique access IDs 
  7. Control data access on a need-to-know basis 
  8. Limit physical access to user data
  9. Set up antivirus and update it regularly
  10. Monitor any attempt to access the user’s card information
  11. Document policies clearly 
  12. Run regular security tests

All organizations that process, transmit, store, or accept cardholder data must be PCI DSS compliant. But even if it is not a legal requirement in your country, it is a good idea to be compliant. All credit card companies will have a version of the PCI DSS that they will use as a contractual agreement with the vendor, and having your basis covered will help protect you from liability issues.

2) Data encryption protocols 

Data encryption is an essential part of any website security, including payments. Currently, there are two  standard protocols used for encrypting the data used on site: 

  1. Transport Layer Security (TLS)
  2. Secure Sockets Layer (SSL) 

SSL is a standard encryption technology that protects the data shared between two systems. Nobody can see what information you are changing, sending, or receiving. Even though many sites use SSL, you should look for those with TLS because it’s an updated and more effective version of SSL.

3) Payment tokenization 

Tokenization is one of the most sophisticated payment protection systems. Even though the concept has existed for a long time, organizations have started using it recently. Tokenization replaces your sensitive card data with “tokens” or random characters generated during the transaction. 

These tokens can be stored and transmitted without revealing credit card information. Tokenization cuts off any connections between the sensitive data, the transactions, and the receiver. That limits breaches and exposure

Even if someone gets the token, they won’t be able to decode it to get the actual credit card information. Only the payment processor can do this. 

4) Crypto payments 

There’s a constant growth of crypto holders, and paying for your services using crypto should be a standard. The top 5 countries with the most crypto users have over 170 million people who use these currencies. People buy insurance, gadgets, services, book flights with crypto, and so much more.

People aren’t buying crypto just because they want to invest, buy items, and make money but because these currencies are incredibly safe. All transactions are transparent, and you can always verify them. However, even though these transactions are transparent, the individuals and organizations behind them are anonymous. 

Blockchain protects your identity and ensures transactions are executed only when the right conditions have been met. 

5) Multi-factor authentication 

Multi-factor authentication and two-factor authentication are reliable security protocols that have existed for a long time. These solutions add another layer of security to your transactions while validating them. 

2FA and MFA require users to complete additional authentication steps before making a payment. For example, when you try to make a payment, you will be sent a randomly generated code via SMS to your mobile phone. You must provide that code to the payment processor before executing the transaction. 

It’s a typical example of two-factor authentication, but more sophisticated options have the same principle. That makes it very difficult for someone to access your accounts even if they have the password and username. 

6) Properly store and handle credit information  

Merchants can store certain credit card information but only if properly encrypted: 

  • Service code 
  • The expiration date of the card 
  • PAN number 
  • Cardholder name 

You can never store the CVV/CVC code, the PIN code, or authentication data. Vendors must also invest in approved equipment and software and perform regular updates to ensure their solutions are always secured. 

Most importantly, companies must have a robust data storage process with extensive authentication to ensure no data leaks. 


While Visa reportedly handled an impressive $2.5 billion worth of transactions in Q1 2022, it seems that a lot of the 18 to 34-year-old demographic, a whole 40% of them, have shown interest in using crypto as their primary payment method for online goods and services in 2022 and beyond. 

With the increased use of traditional cards and crypto online comes a higher risk of fraud and security breaches, which is why more people expect luxury service and product providers to handle their credit card information with care. 

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