Payment Card Industry Data Security Standard (PCI-DSS) is a standard policy to safeguard customers’ personal information when using credit, debit, or cash cards in making a purchase. PCI-DSS compliance is critical for companies to continue business operations and maintain public trust.
An in-house compliance team may include data analysts, auditors, and cloud security professionals. Hiring these people may cost time and additional budget. Today, merchants may outsource PCI DSS compliance to fast-track their transactions in a highly secured environment.
An outsourced PCI-DSS Level 1 compliance service provides payment gateways and point of sale (POS) security against cybercrime attacks. However, website hosting, billing management, and some back office service may also be subjected to PCI-DSS service level 1 compliance.
Compliance levels for PCI-DSS service providers
The PCI-DSS service provider has two compliance levels based on the number of transactions they cater in a year.
Each compliance level has security requirements and qualifications upon review by the PCI Security Standard Council (PCI SSC). The primary card payment hosts that set the standards for PCI compliance in terms of protecting client data are:
- Visa
- MasterCard
- American Express
- Discover
- JCB
Any enterprise that wishes to use the card payment platforms for their business must adhere to the requirements. The number of transactions processed yearly dictates which compliance levels they fall into. It includes the requirements and protocols that service providers must always uphold.
However, regulations in each compliance level differ between a merchant and an outsourced service provider. Here’s a guide on what to look for when outsourcing PCI-DSS compliance services:
PCI-DSS Level 1
Service providers that fall under the PCI-DSS Level 1 have more than three hundred thousand collective transactions per year.
However, other primary card payment gateways like MasterCard, Visa, Discover, and American Express administer their criteria. These are for service providers to determine whether an organization is allowed to link their card payment platform and the company server.
When outsourcing level 1 service providers, merchants may check if a firm obtains validated requirements such as:
- Annual Report Compliance (ROC) by a Qualified Security Assesor (QSA)
- Quarterly network scan by an Approved Scanning Vendor (ASV)
They must also undergo a penetration test, internal scans, and Attestation of Compliance (AOC) forms. Other credit card hosts have a registry of approved service providers that merchants can look into when outsourcing compliance services.
PCI-DSS Level 2
PCI-DSS Level 2 service providers store, process, and transmit less than three hundred thousand credit card transactions annually.
Requirements for PCI-DSS Level 2 compliance for service providers include:
- Annual PCI Self-Assessment Questionnaire (PCI SAQ) D
- Quarterly network scans by the Approved Scanning Provider (ASV), and
- Attestation of Compliance (AOC) form
Credit card companies may also have different requirements for level 2 service compliance. It would be helpful for the merchant to check if the service provider has met specific criteria.
What are the PCI-DSS level 1 services?
PCI-DSS Level 1 is the highest among all compliance levels. Merchants or business owners that have over six million transactions annually and have gone through a data breach need to comply with PCI-DSS Level 1. They must have acquired a bank and payment processor to complete their transactions securely.
An outsourced party with PCI-DSS Service Provider Level 1 can make more than three hundred thousand transactions annually while strictly adhering to cybersecurity standards.
PCI Security Standards Council runs penetration tests on service provider firewalls and networks. These tests are done to determine if servers can store, process, and transmit card payment data without minimal to zero risk.
A trustworthy PCI-DSS Level 1 service provider has proved its credibility to the council and credit card companies.
Outsourcing PCI-DSS level 1 compliance
In business process outsourcing (BPO), compliance teams are highly in-demand due to the broadening landscape of payment methods for small enterprises. With expertise immediately available, firms can fast-track recruitment and training periods, getting straight to serving customers and clients.
PCI-DSS Level 1 service outsourcing ensures the protection of the data shared with the vendors by their clients. Data operations and analysis teams were trained to detect suspicious activities that would put a compliance process at risk. The most common practices are discerning spam messages, education about external and internal links, and identifying call phishing.
Outsourcing PCI-DSS Level 1 service eases merchants the responsibility of running the operations, but they may still be held accountable for PCI-DSS.
It’s vital that businesses thoroughly check a third party’s reputation and compliance. It’s also essential for clients to oversee how their service provider operates to meet high standards.
A Careful review of the provider’s due diligence and request for test runs and demos might also help detect risks and irregularities within the process. As vendors, they are expected to abide by the regulations and standards set by the PCI authorities.
