How do online payment systems secure financial transactions? 🔊
Online payment systems secure financial transactions through several methods, including encryption and tokenization. When a user submits payment information, it is encrypted to protect sensitive data during transmission. Additionally, tokenization replaces card details with unique identifiers, making it impossible for hackers to access actual payment data. Systems often implement fraud detection mechanisms and multi-factor authentication to ensure that transactions are legitimate and secure. Overall, these measures work together to build trust and protect both consumers and merchants in digital commerce.
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