Payment Card Industry Data Security Standard (PCI-DSS) is perhaps one of the most critical cybersecurity protection processes for clients and customers. PCI-DSS safeguards customer debit and credit card information from hacking, misuse, and theft.
Businesses, big or small, are responsible for safeguarding their customer’s payment information. Furthermore, upholding security standards also strengthens firewalls around sensitive business data.
Companies that process over six million card transactions annually are subject to comply with PCI-DSS Level 1 requirements. The compliance process for PCI-DSS Level 1 costs resources and may take time to complete that is why major companies outsource this service.
Importance of PCI-DSS level 1 compliance
The convenience and perks of the card payment method for any transaction give customers a positive experience interacting with the brands. However, processing over six million card transactions across all channels is big business.
It also means that millions of customers trust a company by giving access to their data and banking information. Companies are responsible for ensuring this vulnerability is at the highest security level.
Proper compliance with PCI-DSS requirements sets a good business track record for companies, increasing clients’ confidence. PCI-compliant companies, whether an enterprise or service providers, show credibility, which will benefit expansion and development decisions.
Adherence to compliance requirements protects businesses from paying fines and legal consequences in case of a cyber attack. Compliance with PCI regulations shows that a company understands the need to reduce the risks of card information leaks.
Solid public trust is advantageous for companies because it attracts more leads that will benefit operations and profit. Moreover, they may receive accreditations from major credit card companies worldwide, creating a greater reach and client pool.
In-house vs outsourced PCI-DSS level 1 compliance team
PCI-DSS Level 1 compliance has a set of requirements that must be maintained and improved for as long as the business continues its operations.
Hiring an in-house team will require – equipment, security system experts, and customer representatives working together to safeguard clients’ personal information.
The card payment process also comes with high-demand security and must occur in configurated environments. This may require infrastructure or office spaces dedicated to the company’s compliance team.
Meanwhile, outsourcing PCI-DSS Level 1 means working with a provider that expertly handles compliance services.
BPO companies that offer compliance processing services have teams of data security and data analyst experts. They also provide perpetual training to their employees, which ensures business clients that they will be working with a knowledgeable team.
Advantages of outsourcing PCI-DSS level 1 compliance
Outsourcing PCI-DSS Level 1 compliance services relieve the burden of frequently maintaining operations and security levels.
Here are some of the advantages merchants can take with a fully outsourced compliance service:
Cost and time reduction
Credit card transaction processing requires the provision and maintenance of resources. Before conducting training for representatives, it’s also necessary to have an expert on board. All of these are essential to secure transactions in the first place.
Outsourcing compliance means getting the service, necessary equipment, and security maintenance at a lower cost and shorter period.
Hands-off sensitive cardholder data
Transference of card payment responsibilities means the merchant does not need to touch sensitive cardholder data. It eases the complexities of PCI compliance processes the business must undergo since the third party fully provides this service.
A third-party provider helps mitigate the risk of leaks and breaches that could negatively impact the company’s reputation.
Focus on data security
Outsourcing PCI-DSS Level 1 compliance process follows robust data security. Outsourcing companies direct their resources on enhancing their cybersecurity which benefits merchants looking for compliance services.
Outsourcing card payment transactions from a fully-PCI compliant vendor guarantee high data security in process and storage.
Disadvantages of outsourcing PCI-DSS level 1 compliance
Outsourcing PCI-DSS Level 1 compliance and card payment may reduce risks. But it does not completely eliminate the downsides of processing over six million card payment transactions each year.
Here are some of the drawbacks a business can prepare for before fully outsourcing their PCI compliance:
Reduced control and overview
Customer information and processes will be transferred to the vendor, reducing the company’s data security and storage control. Trust is vital to making PCI outsourcing partnership work for both organizations and, most importantly, for the customers.
A company gives up control over a big chunk of information within the processes, which, more often than not, is highly confidential.
Joint risk for vendor and merchant
Sharing sensitive information with a third-party entity is a joint risk for both sides. When a vendor becomes a victim of cyberattacks, all their clients are compromised. Data transferred and stored in a place different from where it was originally extracted are highly vulnerable to risks.
Such arrangements must be built around the trust and credibility of the merchant and vendor, joining forces to protect the information of millions of clients.
