PCI DSS was created to ensure that all businesses that use card payments securely process their transactions.
Card payments, such as debit and credit, have been standard payments around the world for years now. The growing usage of card payments offers a tempting and profitable scheme for many hackers.
That’s why as the card payment industry grows, financial breaches and fraudulent acts grow too. In the year 2020, the Federal Trade Commission received 2.2 million financial fraud reports in the US.
The thing is, when fraudsters hack card information, they don’t only impact the cardholders. They affect the entire payment card ecosystem. It includes merchants, banks, and customers.
This is where the role of Payment Card Industry Data Security Standard (PCI DSS) plays importance.
What is PCI DSS?
Payment Card Industry (PCI) Data Security Standard (DSS) is a set of security standards applied to organizations that use payment cards in their financial transactions.
Knowing that almost all businesses use and accept credit or debit cards as a form of payment, PCI DSS compliance had a positive appeal for ensuring data security. These requirements reduce the risk of theft and fraud.
Not only is PCI DSS compliance a good standard to prevent identity theft, but it also offers features of detecting, preventing, and remediating data breaches.
Benefits of a PCI DSS compliance
PCI DSS was created to ensure that all businesses that use card payments securely process their transactions.
For every business that processes payment card transactions, maintaining PCI DSS compliance is essential. Maintaining your business compliance level will ensure that your financial transactions are safe and secure.
Becoming PCI DSS compliant also protects your organization and your clients from possible threats of a data breach, leaked cardholder data, and other financial frauds.
The PCI DSS and major card brands namely Visa, Mastercard, Discover, and American Express strongly promote security practices to businesses.
PCI DSS compliance level
There are four levels of PCI DSS compliance enforced by major card companies. If a business encounters any data breach that results in data compromise, there may be a need for them to be escalated to a higher level of compliance.
Learn more about the four levels below:
Level 1
Level 1 merchants process over 6 million card transactions every year. Any merchant that has a total of 6 million transactions across all regions may qualify for Level 1.
Merchants under Level 1 must: complete an annual Report on Compliance (ROC) through a Qualified Security Assessor (QSA). They also need to conduct a quarterly network scan by an Approved Scanning Vendor (ASV).
Lastly, they have to submit a complete Attestation of Compliance (AOC) form.
Level 2
Level 2 merchants process 1 to 6 million card transactions every year.
Merchants under Level 2 must: complete an Annual Self-Assessment Questionnaire (SAQ), a quarterly network scan by an ASV, and an AOC form.
Level 3
Level 3 merchants process 20,000 to 1 million card transactions every year and exclusively through eCommerce processing methods.
Merchants under Level 3 must: Complete an annual SAQ, a quarterly network scan by an ASV, and an AOC form.
Level 4
Level 4 merchants process up to 1 million card transactions every year through all official channels.
Merchants under Level 4 must: Complete an Annual SAQ, a quarterly network scan by an ASV, and an AOC form.
What’s your PCI DSS Level?
Businesses can check their PCI DSS compliance status by consulting their services provider. Merchants under levels one, two, and three have more complex compliance requirements. This is because the size and nature of their business are factors for accomplishing requirements.
Merchants who identify as small or medium-sized businesses fall under level 4. Good thing that some providers offer PCI compliance assistance to make this process more affordable for other businesses.
Maintaining PCI compliance
PCI compliance is not performed overnight. It requires an ongoing effort to ensure that you adhere to the standards. If you are a business owner, much of this effort relies on you.
As you maintain your PCI compliance, you can perform the following:
- Secure computer networks by using firewalls, and prohibiting internet usage on the POS for anything but payment processing.
- Conduct regular security checks and perform a vulnerability management program such as antivirus updates.
- Require monthly password updates.
- Perform system access audits to ensure your entire management has the lowest levels of access to cardholders’ data.
- Conduct employee training regarding PCI and data security best practices.
According to the PCI security council, security controls implemented by businesses were often out of compliance when breaches happen. Once you’ve achieved compliance, it’s important to implement practices to maintain your complaint status.
Read our ultimate guide to PCI DSS compliance for more information.
