As the standard in the business industry, companies that store, process, or transmit payment card information in their systems are asked to comply with PCI-DSS.
Not adhering to this can result in various consequences that can damage your brand.
PCI-DSS definition
In 2006, a set of standards was created to ensure security among credit and debit card transactions against data breach, theft, or fraud. This security measure is called Payment Card Industry Data Security Standard or PCI-DSS.
Through PCI-DSS, companies have a framework to identify and address data threats and vulnerabilities towards their payment system.
This helps businesses establish a relationship with their clients that is built on trust. It holds them accountable should a data breach occur within their organization.
Why is it important for your business?
Nowadays, data breaches can happen anywhere and to anyone, from big corporations to small start-ups. This is why creating a secure environment for your customers and their data is very important.
If you are a company that regularly receives card payments, following PCI-DSS standards should be a priority. It helps assure clients that they could have trustworthy transactions every day.
Organizations can easily lose their credibility whenever they are faced with negative publicity. Applying for compliance can help you prevent situations that would result in the business’ reputation being damaged.
Being PCI-DSS compliant is also important whenever you are trying to close a deal with other companies and banks. Having this level of security allows them to see that you take the safety of your data seriously.
5 common effects of PCI-DSS non-compliance
Applying for PCI-DSS compliance can be a complicated and tedious process. However, you and your team must have patience as non-compliance may lead to various repercussions.
Listed below are five consequences you may encounter when you don’t comply with PCI DSS.
Fines and Penalties
The number of penalties for non-compliant organizations may depend on the number of clients, annual transactions, the PCI-DSS level that your business may belong to, and the total length of time that you have not been compliant.
Banks and payment processors that you are currently working with may also face fines which would automatically be transmitted to your organization. This situation may greatly affect the working relationships you have with these companies.
Your business would also need to pay compensation to your clients in the form of credit card monitoring, identity theft insurance, and other forms. The total of all of these may result in a very expensive bill.
Data breaches
Digital security is hard to maintain in these times. Even corporations that are PCI-DSS compliant have the possibility of experiencing data breaches.
When this situation happens, your business must provide documents that prove your PCI-DSS compliance to forensic examiners. They will then determine if the data breach is a result of your non-compliance or not.
Payment for the forensic examiner will be placed on your account. If your company is non-compliant, the examiner will also assess your whole system.
A data breach is costly and things will be more complicated if the examiners found out that you are not compliant with the PCI-DSS standards.
Legal actions
Should a breach happen, your business will not only be left to deal with the loss of data. Lawsuits are the most possible consequence you could face – both from the customers and organizations that you are in transaction with.
If you are PCI-DSS compliant, you can avoid these lawsuits and the liabilities your company may otherwise encounter.
Revenue loss
Any negative news that is related to your brand may affect your company’s revenue. A data breach may affect your income due to the possible loss of clients that you would have to suffer.
Further, if customers find out that you are not following the standards that the PCI-DSS presented, they may find it a challenge to trust your company.
This non-compliance may lead them to believe that you are not taking the safety of their personal information seriously.
Damage to brand’s reputation
A data breach will greatly affect your brand’s reputation and customer loyalty. Your business will be put under constant public scrutiny and could lose clients.
Putting your client’s data at risk can result in inevitable damage to your reputation. Once it has been proven that your security was compromised due to your non-compliance, it will be difficult to gain your customer’s confidence again.
