Online retailers are among the most vulnerable to data breaches. In the last decade, many businesses have reported security breaches. These incidents have resulted in the theft of customer data, including that of department store chain Macy’s.
Shoppers become more cautious about sharing their payment information online if they perceive privacy risks. Data breaches can lead to lost customers trust and reduced revenue for brands.
Macy’s 2019 data breaches revealed that Macys.com was connected to a website that accessed customer payment information on its “Checkout”, and “My Wallet” pages. To settle the data breach lawsuit , the company paid $192,000.
Shopify is trusted by more than 1,000,000 merchants, and millions of customers. Shopify is PCI DSS compliant and has spent significant time and money to ensure that their solutions are secure.
Learn more about PCI compliance on Shopify. We will compare Shopify’s security with Magento and explain why Gen Z shoppers prefer a secure store. We will also discuss 6 ways that Shopify security can increase brand trust.
What is PCI Compliance?
To reduce fraud activity, the Payment Card Industry Data Security Standards are used. It’s now a security standard that all credit card processing organizations must adhere to.
PCI compliance allows you to sell securely online and accept payments from many vendors. These include Mastercard and Discover as well as American Express.
Shopify PCI compliant
Yes. Shopify stores are PCI compliant automatically. This allows merchants to keep customers’ payment information secure and private. Shopify’s compliance includes 6 PCI standard categories that apply to all stores powered by the platform.
1. Secure network
2. Protecting cardholder data
3. A vulnerability management program must be maintained
4. Strong access control measures must be implemented
5. Monitoring and testing the network security regularly
6. Information security policies must be maintained
Shopify has taken these steps to show that they have made the effort to ensure PCI compliance for customers and merchants. Shopify takes every precaution to ensure that your shopping cart and ecommerce hosting are secure. On-site assessments are performed to verify compliance with continuous risk management. Your web hosting, shopping cart and store are protected by Level 1 PCI certification.
Is PCI Compliance Mandatory
The U.S. federal law states that PCI DSS compliance is not mandatory. Nevertheless, some state laws require compliance with PCI DSS.
Nevada, for example, has made PCI compliance a state law. This requires all merchants that do business in Nevada to comply. Similar laws were also followed in Washington and other states. Major credit card companies might also request that you ensure PCI DSS compliance in order to use them as a payment gateway.
Penalties can be imposed for not adhering to PCI compliance when it is required. These fines can be hundreds to thousands of dollars. You could be held responsible for damages resulting from a security breach.
It is important that you evaluate each store individually. You should also check to see if your bank or credit card company has any requirements that aren’t covered by PCI legislation.
Shopify offers SSL certificates
Shopify will issue SSL certificates once your domain is added correctly. SSL certificates protect your store’s content, and allow you to publish it securely via HTTPS.
For example, if your store URL is http://www.website.com, it will be updated to https://www.website.com after Shopify issues SSL certificates. Customers who used the original URL will be redirected directly to your encrypted online store.
SSL certificates can be added to your store for extra security and customer trust.
You should verify that your online store contains content, such as images, videos, or web fonts, hosted on another platform than Shopify. This can be done in Shopify Admin so that your SSL certificate is not invalidated.
Shopify Security Response
Shopify constantly adjusts to new threats in order to protect customers and merchants. Shopify’s Shopify Safety Response asks merchants to report security concerns through their HackerOne Page. Direct user feedback allows for issues to be reported, and security problems can be addressed quickly.
Shopify Security vs. Magento
Adobe stated that it will cease support for the 12-year-old Magento 1.x release at June 30, 2020. This applies to Magento Commerce as well as Magento Open Source. Magento 1.x-based retailers who keep their online stores open after this date will be held responsible for greater responsibility. They will be responsible for maintaining security updates and PCI DSS compliance.
Adobe also reported in a separate security Bulletin that a critical level vulnerability could be present. As Magento 1 support is halted, this means that sensitive information could be disclosed.
These disturbing announcements have left tens of thousands merchants with compromised websites. Online Magento 1 retailers face a difficult decision due to timely pressure. Replatform Magento 2 or migrate on a different platform?
Customers who have Magento accounts are encouraged to switch to Shopify. Shopify is a fully-hosted solution. Magento’s open source solution requires that it be installed on a server. Shopify merchants don’t have to worry about security updates or server side issues.
Merchants can refocus their energy and time on the most important goals of growing their business with automatic security upgrades and PCI DSS compliance. These goals include customer engagement, content creation, data-driven market, social influence and content creation.
Security and Gen Z
An study from Google shows that ecommerce security could help younger generations feel more secure online. Nearly 60% of Gen Z (ages 8-22) stated that they had not been educated about online safety in a survey conducted by F5.
These studies show that Gen Z-ers need to be educated more in order to develop safer digital habits earlier. Merchants and developers need to create online stores that are safe for all users, regardless of their age.
According to U.S data, Gen-Zers also fall short in password security. This is according to a Harris Poll. This survey included 3,000 respondents and 78% of them admitted that they use the same password to access multiple online accounts.
Gen Z was also the most frequent user of 2-step verification (76%), surpassing older users. Gen Z’s willingness to use 2-step verification is a sign that they are trying to improve their security.
Harris Poll also shows that the generation lacks confidence when it comes to online account security. Over 50% of respondents reused the same password to access multiple accounts. Only 24% also use a password manager. Despite many people telling them that they need a better way of tracking passwords, this is still a significant number.
This is why it’s not surprising that Gen Z could be benefited by web safety best practice. Merchants have an opportunity to make shopping safer for younger generations by bridging the gap in education. Gen Z will be able to see that you value their safety and provide an easy-to-use, safe ecommerce experience. This will help you build trust and increase customer loyalty.
6 ways to increase customer trust on Shopify
Secure Payment Options
Shopify is able to offer customers the best standards of credit card processing server compliance. You can find more information about Shopify’s PCI compliance . This is Shopify’s greatest advantage over other self-hosted solutions.
To achieve the same level compliance, hosting your own Magento server will cost you hundreds to thousands. You could be subject to a PCI noncompliance fee 20-$30 per month.
Shopify is PCI compliant right from the beginning. You don’t have to spend money or do anything to make sure your credit card processing is secure. Customers can make payments whenever they want without worrying about credit card security.
99.98% uptime
Merchants are worried about the availability of their stores. Amazon could lose up to $100 million in sales if it is down for just one hour on Prime Day.
Shopify is a SaaS hosted solution. Your store will be hosted on Shopify servers, and doesn’t require any additional installation. Shopify offers merchants a 99.98% uptime warranty. This allows retailers to avoid losing sales due to store closures during peak hours.
Diff’s client Gymshark , for example, migrated from Magento into Shopify Plus after a Black Friday crash. The online store was left in darkness for eight hours due to the downtime. Gymshark lost an estimated $143,000 due to this failure. Customers who had hoped for a great experience with Gymshark also lost trust in the company.
Gymshark is one the most successful global apparel and fitness brands. They were able execute a multi-channel global growth strategy by migrating to Shopify Plus.
- Black Friday social media campaigns yield 9.3x ROI
- Holiday revenue has increased by 197%
- Revenues from FY 2018: $128 Million
Gymshark, a brand that strives to deliver exceptional customer experiences around the world, is set by Shopify. Shoppers will trust your ecommerce store and not look elsewhere if there is a disruption in their shopping experience.
Credibility increases
To establish trust with customers, Shopify store owners can place a security tag on their online store. This badge can be linked to a description about how Shopify meets Payment Card Industry standards.
Shopify admin portal allows you to add the security code to your online shop. You can choose from a light or dark security badge to contrast with your theme’s colors. You can resize the badges using the.svg format without losing image quality.
Customer Data
Shopify offers guidelines to help developers comply with legal obligations. This information is important because it ensures that Shopify can be trusted with the private information of over 1,000,000 merchants and millions more customers. Shopify takes responsibility seriously and provides guidelines for developers on how to keep user data private and secure.
Shopify’s guiding principles are transparent and easy to follow. Shopify encourages partners to enjoy the benefits of working on the platform together. The platform enforces rules and limits that ensure fairness for all parties.
Shopify also offers API licensing and terms of use documentation. These are the rules that govern what is and is not permitted when you use the world’s leading ecommerce platform.
Admin Security
Shopify’s backend is secure and offers a staff authorization system. Each person can have an account in Shopify. You can protect your online shop from security breaches by setting up security measures to authenticate or block access.
Staff can access Shopify admin without revealing sensitive information. Your timeline keeps your staff updated on all recent orders, changes, and customer interactions.
Fraud Protection
Fraud Protection protects Shopify businesses from fraudulent chargebacks. This allows merchants to process orders quickly and easily. Online orders can be classified as “protected” after activating Fraud Protection.
Shopify will pay the merchant a fee for every protected order. Shopify will pay the merchant a fee for each protected order. Shopify will also handle the chargeback process. This feature is only currently available in the United States.
Shopify is an online shopping platform that offers security and anonymity.
Shopify is committed to PCI compliance and will ensure that your customers are protected during every transaction. Shopify Plus provides SSL certificates that increase security and trust in your online store. Shopify Plus promises a 99.8% uptime, which can also impact online store reliability. Shopify Plus guarantees that your customers can shop online at any time, anywhere in the world.
Shopify’s fully-hosted platform allows over 1,000,000 merchants automatic security updates that allow them to focus their energy on growing and developing their brands. Shopify stores can boost brand trust and sales by providing customers with a safe shopping experience.
