The benefits of a smartcard-free payments process 

 

In a fast-moving payments landscape, companies are constantly seeking more efficient and secure solutions for their payment.

 

Smartcards have their pros but are not so smart when it comes to processing Bacs payments. They can be vulnerable to physical attacks, such as tampering or cloning, which compromise their security and as they need to be physically at your fingertips to be useful, mislaying your card can leave you unable to sign your payments. With this in mind, many businesses are taking the step to migrate to cloud-based solutions and Hardware Security Modules (HSMs).  

 

This blog looks at the benefits of smartcard-free payments and a move to HSM. 

 

 

Smartcard-free for enhanced security

 

Moving to the cloud offers robust security including data encryption and secure access. By moving sensitive payment data to the cloud, businesses can rest assured that their systems are continuously up-to-date and data is managed in a way that meets regulatory requirements. 

 

With tamper-proof protection, HSM provides one of the highest levels of security against external threats. HSM, or Hardware Security Module, can be provided as a physical computing device or hosted as-a-service, safeguarding and managing digital keys, performing encryption and decryption functions for digital signatures. It uses algorithms to encrypt data to offer an increased level of security and are used specifically to protect sensitive data. Providing a highly secure, tamper proof method of securely sign your files, HSM works like a card chip and pin. 

 

In order to use HSM for your Bacs submission, you will need to obtain an HSM certificate from your sponsoring bank. This is stored on the HSM. Once connected to your Bacs approved software, it allows you to sign payment submissions simply, securely and without the need for any smartcards. 

 

 

Anytime, anywhere signing

 

Cloud-based signing such as HSM-as-a-service provides businesses an enhanced experience with access from any location. With a cloud based HSM, payments are available anytime, anywhere making remote working instantly easier and more secure. 

 

This can help you save costs and reduce the overhead of managing physical HSMs, while still ensuring the security and reliability of your sensitive data. HSM-as-a-service is a very cost effective solution, particularly if you have a lot of smartcard users. Users can perform transactions, complete signing and also verify their identity seamlessly without the need to carry physical smartcards.  

 

Whether a business needs to support hundreds or millions of users, HSMs can scale accordingly 

 

 

Cost savings 

 

Migrating from physical smartcards to cloud-based HSMs can achieve massive cost savings for businesses. Upfront costs for the physical hardware and maintenance costs are eliminated and systems can be upscaled as and when required.   

 

 

Guaranteed compliance 

 

Providing a secure environment for storing and processing sensitive data, HSMs help ensure that data is managed in a way that meets regulatory requirements. Bacs approved software providers maintain compliance certifications, such as ISO 27001, ensuring that data is handled in accordance with industry standards and regulations. 

 

 

The key to automation 

 

 

HSM is the key to streamlining your payment procedures with automation. Using an HSM allows you to explore the benefits of automating your routine payment tasks to save time and improve efficiency. Processes such as file import, bank data validation, signing, approval and submission can all be safely handled by an automatic process. And if your internal processes change, automation workflows can be swiftly and easily edited, keeping you in control. 

 

 

Conclusion

 

Transitioning from smartcards to the cloud and HSMs represents a significant leap for businesses security, user experience, reliability and cost-effectiveness. MSP Secretaries embraced such a move and took a crucial step towards a secure and agile future. For more information on HSM, read our guide to HSM. 

 

To discuss how HSM can bolster your payment security and business efficiency, contact our Bacs expert team.

 

 

 

Need to review your payment processes? We’re here to help.

More from our knowledge hub

paygate v3 features & benefits

Single sign-on *Coming in 2024 for V3

✓

 paygate on prempaygate v2paygate v3
Security policy manager * Includes: password complexity manager, inactive timeout, time restrictions, IP address restrictions
✓✓✓
AWS ISO27001 hosted * Primary fail over and back up UK data centres
 ✓✓
SFTP file uploads/downloads *Secure way to move files across the internet, customers can use their own certificates
✓✓✓
Gemalto security tokens MFA✓✓✓
Email MFA  ✓
SMS MFA✓✓✓
APP MFA *
Works with common auth apps such as Google Authenticator, Authy.
Works on Android or iOS.
  ✓
PG Platform ISO27001  ✓
Fraud tool *Currently support Blacklists and Whitelists.
In a blacklist you add various sortcodes / account numbers and the system will prevent any payment to those accounts.
In a whitelist you add sortcodes and account numbers and the system will ONLY allow payments to accounts on the whitelist.
We include various tools to help build and maintain the lists.
  ✓
GDPR subject access request *
Search tools to help perform a GDRP lookup.
Then can optionally ‘sanitise’ personal data from the system.
✓✓✓
GDPR Data cleansing *Remove historical data by bulk or individual.
  ✓
Browser compatbility *
We maintain support for Chrome, Edge and Firefox.
  ✓
Built for performance *
Version 3 runs on super modern, high-end infrastructure
  ✓
Single Platform *
Customers have a single user account that they can use across all services (Enterprise, Online, Validate, etc).
  ✓
Agent rebuilt key management system *
Very secure way to get files to and from the Paygate cloud.
Supports ways to automate files being sent into the paygate cloud and retrieving reports from the cloud.
Key management was rebuilt for V3 to further increase security.
  ✓
HTTPS uploads/downloads *

paygate v3 supports both SFTP and HTTPS.
  ✓
In browser File and Folder handling *
Allows customers to securely organise their files and folders that are stored on paygate
  ✓
PG on prem PG Ev2 PGv3
Logging tickets by email ✓ ✓ ✓
Logging tickets by portal ✓
Logging tickets by phone ✓ ✓ ✓
Dedicated account management ✓ ✓ ✓
Uptime improvements ✓
Ongoing development ✓
Bug fixing ✓
Auto File Import *Automatically imports a payment file and validates it. Users no longer need to manually browse for and import a file, paygate will do this in the background and present the validation results to the user.
✓
PG on prem PG Ev2 PGv3
Designer in browser * In V2 Workflows use an older style desktop app. In V3 workflows are built and managed in the Paygate Browser app. It’s much easier to deploy and manage.
✓
Designer 3rd party app ✓ ✓
Improved logging * A feature mainly for PS/CS to help them diagnose problems with workflows. Problems can be diagnosed and fixed faster.
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New scheduler triggers * A new trigger type that allows the user to set up a workflow like you set up a meeting in Outlook. For some, this is more flexible and easier to understand than using CRON.
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Triggers for multiple workflows * You can use a single trigger to start multiple workflows. It’s a simple feature that will make things easier to manage if you have a lot of workflows.
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Workflow validation * Troubleshoots new workflows, validation
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Workflow chaining * Allows a workflow to call another workflow. Using this you can simplify large complicated workflows in smaller separate ones. Easier to manage and diagnose issues.
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New nodes * Various new nodes that help to build new types of workflows or help manage existing workflows.
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Full documentation V3 will be fully documented with help guides and tutorials.
and tutorials *
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Multiple filename variables * Supporting multiple filename variables should make designing complex workflows a bit easier.
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Future developments * Pure Excel Importer – XLSX; BACS Calendar Widget; Workflow Timeline; Workflow / Mobile App notification / management; S3 Connector
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Download and distribute A Reports * When you have workflow and HSM you can automate the entire BACS report download process. They can automatically be converted to other formats for integration into finance apps. They can be emailed to customers as html, pdf or zips. They can be made available for collection via SFTP. Or, if you use Agent, they can be security delivered to the customer’s private network.
✓ ✓ ✓
Partial submission ✓ ✓ ✓
Lightsout submission * No signing
✓ ✓ ✓
Standard nodes for initiation ✓ ✓ ✓
PG on prem PG Ev2 PGv3
Batched bureau submissions ✓ ✓ ✓
Manual & Automated submission builder ✓ ✓ ✓
Customer import ✓ ✓ ✓
Bacs reporting tools ✓ ✓ ✓
Recall Bureau Customers by ID ✓
Submission Re-entry * Complete your submissions over any amount of time
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Familiar workflow throughout *It will be familiar to V2 customer but they will notice improvements.
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Revamped manual submission mode *This is completely new in V3 Bureau. Those customers wanting a more manual way of building their submission (Rather than using Jobs) will find a new, efficient way of working.
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Drag and drop files from anywhere *Like in other areas of V3. User can just drag and drop file in Bureau for processing. They can also use the Restricted File Browser and Server file browser – that add more security – if they wish.
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Support for multiple file formats per submission * No longer limited to single Standard 18 submission for example
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Better default filename support *Makes working with files easier.
✓
Usage Reporting over data range *Small but useful improvement to reporting. User can set a date range on the usage report.
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PG on prem PG Ev2 PGv3
Validate *Validate is integrated in V3 and so customers that have both products can access them from the same client with the same account.
✓
API Access *Validate API and the Payment API.
✓
4x Faster ✓
Save Submissions *Save an ‘in-progress’ submission and return to it later. Build up a submission during the day
✓
Improved payment and submission searching ✓
Customisable dashboard *Many useful, module specific, dashboard widgets, e.g. Payments, collections, workflow, etc.
✓
PG on prem PG Ev2 PGv3
Enhanced reporting including real-time usage ✓

Thank you for your interest in paygate v3.

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