How to Secure Payments on Online Marketplaces for 2025

As marketplaces continue to move to online spaces, they have revolutionized the way people buy and sell goods and services. From e-commerce giants like Amazon to peer-to-peer platforms like Etsy or Airbnb, online marketplaces serve as intermediaries that facilitate transactions between buyers and sellers.However, this convenient form of trade does come with some risks, especially around the process of payments. Whether you’re running a marketplace through a mobile app or a web development framework, securing payments must be a top priority.

Why Securing Payments on Marketplaces Is Critical

The cornerstone of any online marketplace is the security level of the payment processes. Without a fully developed system in place, both buyers and sellers are vulnerable to possible fraud, data breaches, and reputational damage. 

Ensuring secure transactions within online marketplaces not only protects users but alldı strengthens the integrity and trustworthiness of the platform itself.

Now, let’s take a closer look at some of the reasons why securing payments is such a crucial factor in e-commerce. 

Trust and Reputation

At the foundation of a successful marketplace is the trust element. When users feel confident in the fact that their payment information is safe, they are more likely to return, recommend the platform to others, and engage in high-value transactions. 

Maintaining a strong reputation highly depends on how proactively a platform handles security threats. Considering:

• Consumers are 70% more likely to purchase from platforms with high security ratings.

• A single data breach can reduce customer trust by over 60%.

Legal and Regulatory Risk

Online marketplaces need to adhere to several legal frameworks, like GDPR (General Data Protection Regulation), PSD2(Payment Services Directive), PCI DSS (Payment Card Industry Data Security Standard), and local financial laws.

Failure to comply may result in significant fines and operational restrictions. Compliance not only avoids penalties but also reassures users that their data is handled responsibly.

Some of the key regulations are:

Fraud and Chargeback Prevention

Online marketplaces are some of the prime targets for fraud.  Users with nefarious aims may exploit vulnerabilities to conduct unauthorized transactions, leading to chargebacks and financial losses.

A secure payment infrastructure for marketplaces can help detect and deter these actions before they escalate. In addition, AI-driven analytics can help platforms identify high-risk transactions and respond proactively to suspicious activity.

Common fraud tactics include:

• Stolen credit card usage

• Friendly fraud (false claims of non-receipt)

• Account takeovers

Common Payment Methods Used in Marketplaces

Choosing the right payment methods is important for both user convenience and platform security.  Each method has its own advantages, potential risks, and compliance considerations, which makes it essential for marketplaces to evaluate them based on their specific audience and operational needs.

In addition, offering diverse payment options can increase trust in the platform, reduce cart abandonment, and support long-term growth in global markets.

Credit and Debit Cards

Credit and debit cards remain as the most widely used payment methods. These payment methods are fast, familiar, and often come with fraud protection services provided by the issuing banks.

Digital Wallets (PayPal, Apple Pay)

Digital wallets like PayPal, Apple Pay, and Google Pay offer convenience and speed. Users can link cards or bank accounts, reducing the need to manually enter payment details.

These wallets integrate seamlessly with both web platforms and mobile apps, making checkout processes faster and more secure on smartphones.

In addition, digital wallets include security features like tokenization, biometric authentication and real-time fraud monitoring.

Bank Transfers and ACH

Even though they may be slower than other methods, bank-to-bank transfers, including Automated Clearing House or ACH, are secure and suitable for larger transactions.

Buy Now Pay Later (BNPL)

Buy Now Pay Later, or BNPL, services like Klarna or Afterpay, allow users to pay in installments. These payment formats have gained popularity, especially among younger shoppers.

Crypto & Blockchain-Based Payments

Cryptocurrencies like Bitcoin and Ethereum provide decentralized, low-cost transactions, appealing in regions with unstable financial systems.

Key Risks in Marketplace Payment Systems

Payment systems in online marketplaces tend to face various threats that can compromise the security and trust of the platform. 

Understanding the possible risks is crucial for e-commerce platforms to implement effective safeguards, protect users, and maintain a secure environment for transactions. 

Identifying and addressing these risks helps ensure the platform’s reputation and compliance with regulations.

Fraudulent Buyer or Seller Activity

Scammers may pose as a legitimate user to defraud others. Common tactics used by scammers are:

• Sellers shipping fake or no products

• Buyers initiating chargebacks after receiving goods

In order to mitigate this, a review process and monitoring of user behavior are required. 

Fake Listings and Phishing

Cybercriminals may post fake listings to persuade users into phishing scams, where some sensitive data is harvested.

Some red flags that can be useful in identifying these listings are:

• Prices are too good to be true

• Requests to pay outside the platform

• URLs that mimic legitimate domains

Transaction Hijacking

Hackers may intercept transactions or even redirect payments to fraudulent accounts, especially on unsecured connections. 

To prevent transaction hijacking, you can:

• Enforce HTTPS and SSL protocols

• Monitor IP addresses for suspicious patterns

Refund and Chargeback Abuse

Buyers may exploit lenient return policies to obtain goods without payment. While some disputes are valid, abuse can harm sellers and the platform.

To prevent this kind of abuse:

• Require detailed proof before approving refunds

• Track users with excessive dispute patterns

Best Practices to Secure Marketplace Transactions

Implementing security practices is essential for protecting both transactions and user data. Beyond ensuring secure payments, these practices help build trust and credibility with customers in the long-term. 

By proactively addressing potential vulnerabilities, online marketplaces can create a safer environment, reduce fraud and foster growth.  

Nowi let’s take a look at some of the best practices to secure marketplace transactions.

Use Escrow or Split-Payment Systems

Escrow services are able to hold funds until both buyers and users meet agreed-upon conditions, adding an extra layer of trust. These services can be integrated into your marketplace via custom-built software or through third-party APIs.

Main benefits of Escrow is:

• Prevents premature fund release

• Enables dispute mediation

Split-payment systems, like Stripe Connect, allow platforms to distribute payments across multiple parties securely.

Choose PCI-Compliant Payment Gateways

Choosing a PCI-compliant gateway can ensure that a cardholder’s data is managed according to industry standards.

Top PCI-compliant gateways are:

Encrypt All Payment Data (SSL, TLS)

End-to-end encryption is important for safeguarding sensitive payment data as it moves between users, servers, and payment gateways.

Encryption standards such as SSL (Secure Sockets Layer) and TLS (Transport Layer Security) ensure that data is transmitted securely and remains unreadable to unauthorized parties.

To implement effective encryption, make sure to:

• Use the latest version of TLS

• Enable HTTPS across your entire platform

• Regularly update SSL/TLS certificates

• Disable outdated protocols

• Perform routine security audits to check for vulnerabilities

Enable Two-Factor Authentication (2FA)

Two-Factor Authentication, or 2FA, adds an extra layer of protection, especially for admin dashboards and user accounts with payment privileges.

Most common types of 2FA are:

• SMS-based codes

• Authentication apps like Google Authenticator

• Biometric like fingerprint, facial recognition

Frequently Asked Questions

What’s the safest way to accept payments on a marketplace?

The safest method is using an escrow system with a PCI-compliant payment gateway, which reduces fraud and protects funds.

Which payment gateway is most secure for global marketplaces?

Stripe, Adyen, and PayPal are secure options, with features like fraud detection, global reach, and buyer protections.

How do I prevent fraud on my marketplace?

Verify user identities, monitor transactions for anomalies, require strong passwords and 2FA, and use AI-based fraud detection.

What legal regulations do I need to follow?

You need to comply with regulations like GDPR (EU data protection), PCI DSS (credit card data), and PSD2 (SCA for EU marketplaces).

Can I accept crypto payments securely?

Yes, but use trusted processors like Coinbase Commerce or BitPay, which offer fraud monitoring and compliance support.