Secure Online Payments Using A Digital Wallet

“Are you looking to secure online payments on your website? You’ve landed on the right page. Digital payment solutions are many, and so are their problems. In this article, I’ll show you how to add a digital wallet to secure online payments.”

Online payments are like airplanes, the safest when it works but the worst when it fails. And for the most part, digital payments are safer than cash exchanges.

But every system has weaknesses and so do traditional payment methods. They’re susceptible to identity theft, merchant fraud, phishing, etc. So, an extensive effort is required to secure online payments.

eCommerce merchants opt for payment security solutions like vulnerability testing, PCI compliance, two-factor authentication, and more. (More on this later)

Among these secure payment options, getting a personalized digital wallet on your WooCommerce store is readily used by small & large-scale stores.

What are In-Store Digital Wallets?

Digital wallets are transaction software that runs primarily on mobile devices, allowing users to update balances, track their payment history, and receive refunds & cashback. It’s the most preferred payment method. For example, Google Pay, Paytm, ApplePay, etc.

In simple terms, digital wallets enable monetary exchanges between users and businesses globally.
An in-store digital wallet is a localized wallet system that works exclusively on an eCommerce store. It has all the features of digital wallets, but it only allows payment exchanges between the merchant and users.

How to Secure Online Payments Using Wallet System for WooCommerce

Well, if you’re a WooCommerce store owner, you can opt for our digital wallet plugin called the “Wallet System for WooCommerce Pro.” (Yes. That’s a creative name.)

It helps you set up a secure online wallet system on your WooCommerce store and allows seamless digital transactions. Customers can recharge their wallets using the available payment methods in your store.

That’s enough of the basics. Let’s dive into the features of our wallet plugin:

• Shortcode to show the wallet frontend panel anywhere in the store.
• Users can track transaction history and download it in PDF, CSV, or Excel files.
• Credit and debit into users’ wallets in bulk and individually.
• Restrict users from accessing wallet features.
• Create a wallet credit system & reward favorable actions of users.
• Wallet coupon generator to create coupons to top up users’ wallets.
• Users can file withdrawal requests to transfer their wallet money into their preferred payment system.
• Each user can generate QR codes for their wallet to receive payment from other users.
• You can offer cash back according to product or category.
• You can allow users (registered customers) to invite their friends to the wallet system.
• Allow users to use their wallet balance for partial payment.
• Send notifications to customers regarding balance updates (credit or debit).
• WooCommerce Wallet System Plugin Compatibilities with
  • Currency Switcher for WooCommerce
  • Subscriptions for WooCommerce
  • RMA Return Refund & Exchange for WooCommerce Pro
  • Page Builder
  • WPML
  • WordPress Multisite

And there is more. I’ll go into the details of every feature, So, stick around.

So, how does the wallet system facilitate WooCommerce secure payment?

First, the wallet system minimizes the use of third-party payment services. Only while recharging the wallet, you and your customers would need to rely on payment gateways.

Second, after the wallet recharge is complete, all other payments are processed internally, allowing your users to pay securely online. So, when your customers purchase goods & services and top up the wallets of other users, it ensures the speed & security of online payments.

It also reduces the saving of credit & debit card details online and thus, prevents them from being exploited during data leaks.

Lastly, you can restrict users from using any wallet system feature. It allows you to penalize suspicious user behavior and protect your store from potential threats.

Also, the Wallet System for WooCommerce Pro plugin is built with the highest security standards and has gone through rigorous vulnerability testing. By design, it is meant to secure online payments.

Other benefits of the Wallet System include

1. Zero transaction fees
2. Lightning fast payments
3. Streamlining the checkout process
4. Improving user experience
5. Building customer loyalty

I’ll admit that not all of those features are directly related to payment system security, but wouldn’t you like a cherry on top of your cake?

Bottomline: The wallet system is a secure online payment processing method. It improves UX, expands the customer base, loyalizes users, and makes the checkout process easier.

Moving on, we have a ton of features to dive into.

Wallet Recharge by Admin and Customers

Recharge is one of the essential features of any digital wallet. Ideally, our wallet system allows both merchants and customers to credit and debit value into the wallet using the available payment methods in the online store.

Being the admin, you can credit or debit your users’ wallet balance in bulk or individually and can also specify the reason for it.

Similarly, users can also top-up their wallets and that of other users

Secure Online Payment By Restricting Users

Now, at first glance, it sounds counterintuitive because you want to encourage users to use the wallet system, not block them

However, not all users join your online store with the best of intentions. A small percentage of them can be hackers or fraudsters looking to compromise your digital wallet security.

So, in case you notice any suspicious shopping behavior from any user(s), you can restrict them in bulk or individually for using wallet features.

You can limit the following features:

• Wallet transactions
• Recharge
• Transferring the balance to other users
• Coupon redemption
• Withdrawal Request function

Now the restriction can be partial (limited to some features) or total restriction.
It is a surefire way to ensure secure online payments.

Generating Wallet QR Codes

A Wallet user can generate QR codes with a simple click. It allows one user to receive a recharge from another user. Also, QR codes are inherently secure online payment methods because they can’t be hacked.

Tracking the Transactions History

Recording the transaction history is crucial to a secure online wallet because it helps you track your spending and identify your transactions. If any abnormal transaction activity is found, measures for securing WooCommerce payment options can be taken.

On top of this, for an in-depth review, you can export or download the transaction table in a PDF, CSV, or Excel sheet.

Customers can also monitor their wallet transaction history.

Payment Gateway Restriction For Wallet Recharge

Wallet Plugin for WooCommerce has the feature to restrict users from using certain payment gateways for wallet recharge. This feature can be very helpful in many scenarios whether you have payment system security concerns or any other requirements related to payment gateways, you can easily restrict them for wallet recharge in just one click.

By allowing users to restrict certain payment gateways for wallet recharge, businesses can create a more controlled and secure financial transaction environment.

This capability is especially beneficial in managing potential security risks associated with specific payment methods and safeguarding against unauthorized access or fraudulent activities.

WooCommerce Credit System

We are all functioning the way we are because a biological reward system is in place. It is deep-rooted in our psyche. Even experiencing altruism is a reward in itself.

However, in an online store, all points & rewards should hold monetary value.

Our secure digital wallet consists of a reward-based loyalty program to convert wallet users into loyal customers. Think of this reward system as a way to incentivize secure online payments.

You can enable your customers to earn wallet balance on signups, daily logins, & positive product reviews.

It will promote the usage of the wallet system, attract new users, and increase the user-generated content on your online store.

Wallet Top-up Subscription

Well, you can manually do a lot of stuff, doesn’t mean you necessarily should. For example, manually recharging your secure digital wallet whenever you need it may become a chore.

So, what your users can do is set up a wallet top-up subscription that will automatically recharge their wallets. The recharging interval can be set according to days, weeks, months, or years. Plus, they can switch to manual top-ups whenever they want.

It is also compatible with the Subscription for WooCommerce Pro & Free plugins, which helps your users set up automatic subscription renewals.

Again, I’d like to assert that you can increase the ease and security of online payment with one solution.

Coupon Generator for Wallet Plugin

The wallet system comes with a coupon generator, enabling you to create wallet coupons that users can use to top up their wallets. Users can redeem the coupon to add balance to their secure online wallet.

It’s a pretty simple feature that is extra useful during the holiday & festive season sales.

During the festive season, gift cards and gift coupons are in high demand. You can create wallet coupons and offer them as a discount option.

To curtail the overuse of coupons, you can modify the usage limit per coupon and user.

Offering Wallet Cashback on Products and Services

The reason the wallet system has so many features in place for purposes other than payment system security is that secure online payments aren’t motivating enough. Customers need solid incentives or value beyond products to spend their hard-earned money.

That’s why 79% of consumers search for deals in loyalty and reward programs before purchasing products.
Now, customers mostly appreciate monetary incentives that are fast. Essentially seeking instant gratification while online shopping.

The wallet system allows you to set up instant cashback rewards according to cart & category and credit them directly into customers’ wallets.

Important to note that users can get cashback rewards after using any secure payment options

Invite Outsiders Into the Wallet System

Our secure digital wallet also takes care of the promotion of your online store. The user invite feature allows your users to send invitation requests to unregistered customers to join the wallet system on your WooCommerce store.

This will obviously help you reach more people and increase your customer base in the long run. Users will be delighted to avail of secure online payment with many rewards

Set Condition to Avail Negative Balance In Account

The wallet plugin has a feature that allows users to shop even if they don’t have enough funds in their wallet but this feature can be easily exploited so our wallet plugin has another option that gives you the option to establish an order limit for users to avail negative balance.

In simpler terms, users will not be able to avail balance in negative until they have reached a predetermined order limit.

Adding a maximum order limit for users to avoid accessing negative balances can greatly enhance payment systems’ security.

By setting predetermined thresholds, this feature helps prevent users from incurring excessive debt or surpassing their financial limits.

Wallet Amount Withdrawal

Customers are conscious about keeping their money in other systems because often they’re not easily able to take their money out. In times of need, this can be a haunting experience for them. Plus, there are concerns regarding digital wallet security.

Well, the former concern is taken care of as the wallet system allows the users to withdraw their balance to other payment services. They just have to provide their payment details and the store owner can transfer their money.

The latter issue of trust is resolved through the incentives provided by the wallet customer loyalty program.

Select Partial Payment

Being the store owner, you can enable wallet users to select partial payment. But it will only work when the order value is greater than the available Wallet balance. There are two types of partial payment methods:

1. Manual: It enables users to select the Wallet amount for partial payment.
2. Total: Use the total Wallet balance for partial payment.

The partial payment feature has other uses too. You can charge a partial payment to validate cash on delivery orders and secure online payment.

Process Refund Effortlessly and Avoid Chargebacks

It is crucial to understand how damaging refunds & chargebacks are to business.

Normal refunds are a matter between you and your customers. With the wallet system, you can transfer refund values directly into users’ wallets. It will help you avoid needless transaction fees, which you normally bear during the traditional refund process.

Plus, you can avoid refund fraud using our secure digital wallet.

Chargebacks are costly. They’re processed through payment processors, which usually charge high fees.
If your chargeback ratio reaches around 0.9-1%, it can be dangerous for your online business. The consequences can range from penalties to termination of your account.

Hence, transferring refunds through a secure online payment method like the wallet system is one of the safest and most secure payment options.

So, these were the main security features of the digital wallet plugin. But it’s not a complete payment system security solution. There are other ways to secure online payments that you must follow.

How To Make Secure Payments Online

Here are some best practices for secure online transactions & payments

1. Getting the SSL/TSL Certificate

SSL and TSL certificates are essential for all online website security. It is reflected in the address bar with a lock icon. You can easily confirm whether your website is protected or not. So, it helps earn users’ trust.

The main function of these certificates is to secure online payments and protect user data, verify website ownership, and prevent hackers from duplicating your website.

Most hosting providers give you an SSL certificate as you create a website using their services. For example, Bluehost, GoDaddy, etc. It is wise to try alternate options like different SSL providers who offer SSL certs at a nominal price. A site owner with different subdomains can secure payments online with reputed SSL brands like Comodo SSL, and RapidSSL wildcard certificate.

2. Setting Strong Passwords

People have a habit of simplifying tasks they should be doing with painstaking detail. Setting up a password has a direct result in securing online payments on a website but it is not followed seriously.

So, please avoid dedicating your passwords to your failed relationships, birthdates, or pets. Make a complex password with various alphanumeric and special characters. And use a password manager if your memory is not sharp enough. It is the most basic way to ensure the security of online payments.

3. Using Payment Tokenization

Tokenization is a method of securing sensitive data. In this process, algorithmically generated numbers and letters replace the sensitive data, making it unrecognizable.
It allows secure online payment & other data transfers and protects your online store.

4. Enable Two-factor Authentication

Two-step verification or two-factor authentication is a protection method in which a user enters their password and then authenticates themselves using a secondary method like biometrics, OTP, etc.
This is widely used to secure online payments by all major payment providers, including national and local banks.

You can easily set up two-factor authentication on your WooCommerce website.

5. Define User Roles

Sometimes the castles are sieged from within. That’s why it is important to carefully give access to individuals working in the backend of your WooCommerce website.

Only give the necessary permissions to individuals and keep access control to yourself. In case of a security breach from an unsuspecting user, you can make sure hackers don’t get their hands on any sensitive information.

6. Adhere to PCI Compliance Guidelines

PCI compliance guidelines consist of the best practices to protect your payment systems, holder data, access control, etc.

You must meet the PCI compliance requirements to secure online payments on your online store. You can read FAQs regarding these guidelines here.

7. Train Your Resources

It is crucial to hire trained staff and to provide training to existing resources in proper security and data protection measures. To secure online payments, they must be aware of the entire process and its vulnerabilities.
Bottomline: Prevention is better than cure.
These were the major ways to secure payments online. For more information, you can read the WooCommerce fraud prevention guide.

On A Final Note

You can secure online payments, avoid fraud, and loyalize your customers using a digital wallet. It is a jack of all trades.

In this article, I’ve explained how to use the Wallet system for WooCommerce, and the ways to secure payments online.

So, with the application of a digital wallet & other payment system security methods, you can protect your customers and your store at the same time.

And hey, check out our blogs if you want to learn more about best eCommerce practices.