There are five main security issues in third-party payment: credit issues in identity authentication of all parties, security issues in banking services, risk issues in security technology, security issues in application systems, and regulatory issues in third-party payment companies.
(1) Credit issues in identity authentication of all parties. The integrity issues in transactions between people who do not know each other are particularly prominent in online transactions. The credit issues of third-party payment include the integrity of both parties to the transaction and the authenticity of the third-party payment system.
(2) Security issues in banking services. If you use a credit card to cash out, you can easily do it with the “transfer” of a third-party payment. Some third-party payment tools have the function of collecting and paying funds, and can even become tools for money laundering. In addition, in online payments, the third-party payment system acts as a steward of funds. When the buyer transfers the funds to the third-party payment system, the third-party payment system must wait for the buyer’s notification before transferring the funds to the seller’s account. During this waiting process, funds will be deposited in the third-party payment system.
(3) Risk issues in security technology. If the online payment service provided by the third-party payment system does not play an effective “management” role, the transaction cannot be completed.
(4) Security issues in application systems. The storage of key data and the transmission process of important data are the focus of user attention. The third-party payment system has a huge amount of user data, such as user passwords, personal files, transaction records, etc. These data involve the user’s information security. If there are no corresponding risk prevention measures, it will be extremely dangerous. When designing the program, we should prevent unexpected situations such as network interruptions and power outages, and carefully design the program for fault tolerance to avoid system crashes when users operate or handle errors. Errors and subsequent operation prompts should be given accurately and promptly.
(5) Supervision issues of third-party payment companies. At present, domestic third-party payment companies are not financial institutions, but limited liability companies. Once a company goes bankrupt, it may cause problems in the capital chain of other companies. The supporting regulatory system for third-party payment is not perfect, making it impossible for regulatory enforcement to be in place. Therefore, the lag in legislation in this area has brought certain difficulties to the regulation and management of the market and the protection of the legitimate rights and interests of all parties.