Cybercriminals are becoming increasingly sophisticated in their approach when it comes to targeting individuals and businesses to steal financial information. This has made the protection of payment card information more important than ever, and companies responsible for securing payment information need to ensure that they are PCI-compliant.
PCI compliance ensures that organizations follow a set of security standards designed to protect cardholder data from breaches and cyberattacks.
In this blog, we’ll explore what PCI compliance is, its importance, how it is enforced, the requirements for compliance and the benefits it brings. We’ll also discuss how Compliance Manager GRC can effortlessly help your business achieve and maintain PCI compliance.
What is PCI compliance?
PCI compliance refers to adhering to the Payment Card Industry Data Security Standard (PCI DSS), which is a set of security standards designed to ensure that all companies accepting, processing, storing or transmitting credit card information maintain a secure environment. PCI DSS was established by the PCI Security Standards Council (PCI SSC), which was founded by major credit card brands like Visa, MasterCard, American Express, Discover and JCB to combat the rising threats of data breaches and cyberattacks targeting cardholder data.
Why is PCI compliance important?
PCI compliance is vital because it outlines the requirements and best practices for protecting payment card information and preventing data breaches. By following PCI DSS guidelines, businesses can safeguard sensitive data, minimize the risk of cyberattacks and protect their customers’ financial information. This compliance not only helps in avoiding financial losses due to data breaches but also boosts customer trust and confidence in the business.
Is PCI compliance required by law?
While PCI compliance is not a law, it is a contractual agreement between merchants and payment card companies. Non-compliance with these agreements can result in hefty fines and penalties. Therefore, even though it is not legally mandated, businesses must adhere to PCI standards to avoid financial repercussions and maintain their ability to process card payments.
Who needs to be PCI compliant?
Any organization that accepts, processes, stores or transmits cardholder data must comply with PCI DSS. This includes a wide range of entities, such as online retailers, physical stores, payment processors and service providers. Essentially, if a business deals with payment card transactions in any capacity, PCI compliance is mandatory.
Who enforces PCI compliance?
The PCI SSC is responsible for regulating PCI compliance. The council, comprising major credit card brands, establishes the standards and requirements for compliance. While the PCI SSC sets the guidelines, the enforcement of compliance is typically carried out by acquiring banks and payment processors that ensure their merchants adhere to the standards.
What are PCI non-compliance fees?
Non-compliant entities can incur significant fines ranging from $5,000 to $100,000 per month, depending on the severity and duration of non-compliance. These fees are typically imposed by acquiring banks and payment processors as part of the contractual obligations. Persistent non-compliance can also lead to higher transaction fees, loss of customer trust and potential legal liabilities.
Requirements for PCI compliance
PCI compliance is structured around 12 fundamental requirements aimed at securing payment card data. These requirements are designed to create a robust security framework for organizations handling cardholder information.
Install and maintain network security controls: Installing and maintaining network security controls is the first step in achieving PCI compliance. This requirement involves setting up robust firewall configurations to protect cardholder data and prevent unauthorized access. Firewalls act as a barrier between trusted and untrusted networks, ensuring that sensitive information is kept secure. Regularly updating and testing these firewalls is crucial to maintaining their effectiveness. Businesses must also document and review firewall policies to ensure they are up to date and in line with current security standards.
Apply secure configurations to all system components: Secure configurations are essential to protect system components from vulnerabilities. This involves configuring hardware and software settings to reduce the risk of exploitation. Default settings are often insecure, so it’s important to change default passwords, turn off unnecessary services and implement security patches promptly. Regular audits should be conducted to ensure that configurations remain secure over time. By applying secure configurations, businesses can significantly reduce the attack surface available to cybercriminals.
Protect stored account data: Protecting stored account data involves encrypting cardholder information and implementing strong access controls. Encryption ensures that even if unauthorized parties access data, it cannot be read without the appropriate decryption keys. Additionally, businesses must implement measures to protect encryption keys from unauthorized access. Storing sensitive data securely helps prevent data breaches and ensures compliance with PCI DSS requirements.
Protect cardholder data with strong cryptography during transmission over open public networks: When transmitting cardholder data over open public networks, it’s essential to use strong cryptographic methods. This ensures that data is encrypted and protected from interception by malicious actors. Secure protocols such as Transport Layer Security (TLS) should be used to encrypt data during transmission. Regularly updating cryptographic protocols and certificates is also important to maintain the security of data in transit.
Protect all systems and networks from malicious software: Protecting systems and networks from malicious software involves implementing and maintaining antivirus software and other security measures. Regularly updating antivirus definitions and conducting scans can help detect and remove malware before it causes harm. Businesses should also educate employees about safe computing practices to prevent malware infections through phishing or other social engineering attacks. Comprehensive malware protection is essential for maintaining the security of cardholder data.
Develop and maintain secure systems and software: Developing and maintaining secure systems and software is crucial for preventing vulnerabilities that attackers could exploit. This involves following secure coding practices, conducting regular security assessments and applying patches promptly. Businesses should also establish a secure development lifecycle (SDLC) to ensure that security is considered at every stage of software development. By prioritizing security in system and software development, businesses can reduce the risk of data breaches.
Restrict access to system components and cardholder data by business needs: Restricting access to system components and cardholder data based on specific business needs helps minimize the risk of unauthorized access. This involves implementing role-based access controls (RBAC) to ensure that only authorized personnel can access sensitive information. Regularly reviewing and updating access permissions is essential to ensure that they remain appropriate as business needs change. Limiting access to data based on necessity helps protect cardholder information from internal and external threats.
Assign a unique ID to each person with computer access: Assigning a unique ID to each person with computer access ensures accountability and traceability. This requirement involves implementing individual user accounts and avoiding shared logins. Unique IDs allow businesses to monitor user activity and identify any unauthorized access attempts. Regularly reviewing user accounts and permissions is also important to maintain security. By ensuring that each user has a unique ID, businesses can improve their ability to detect and respond to security incidents.
Restrict physical access to cardholder data: Restricting physical access to cardholder data involves implementing physical security measures to protect sensitive information from unauthorized access. This includes securing data centers, implementing access controls, such as key cards or biometric scanners, and monitoring physical access to sensitive areas. Businesses should also establish procedures for handling and disposing of physical media containing cardholder data. By restricting physical access, businesses can prevent unauthorized individuals from accessing or tampering with sensitive information.
Log and monitor all access to system components and cardholder data: Logging and monitoring all access to system components and cardholder data helps businesses detect and respond to security incidents. This involves implementing logging mechanisms to record access to sensitive information and reviewing logs regularly for suspicious activity. Automated monitoring tools can also be used to detect and send notifications of potential security incidents in real-time. By maintaining comprehensive logs and monitoring access, businesses can improve their ability to identify and respond to security threats.
Test the security of systems and networks regularly: Regularly testing the security of systems and networks is essential for identifying and addressing vulnerabilities. This involves conducting vulnerability scans, penetration testing and other security assessments to evaluate the effectiveness of security measures. Businesses should establish a schedule for regular testing and ensure that any identified vulnerabilities are promptly addressed. By continuously testing security, businesses can stay ahead of emerging threats and maintain PCI compliance.
Support information security with organizational policies and programs: Supporting information security with organizational policies and programs involves establishing a comprehensive security framework. This includes developing and implementing security policies, conducting regular security training for employees and establishing incident response procedures. Businesses should also conduct regular reviews of security policies and programs to ensure they remain effective and aligned with current threats. By fostering a culture of security within the organization, businesses can enhance their overall security posture and ensure compliance with PCI DSS requirements.
For more details on these requirements, you can refer to the PCI DSS supporting document.
Levels of PCI Compliance
PCI compliance is categorized into four levels based on the number of card transactions processed annually by an organization.
PCI Level 1
Level 1 applies to merchants processing over six million card transactions per year. These merchants must undergo an annual on-site review by a Qualified Security Assessor (QSA) and perform quarterly network scans.
PCI Level 2
Level 2 is for merchants processing between one million and six million card transactions annually. These merchants are required to complete a self-assessment questionnaire (SAQ) annually and perform quarterly network scans.
PCI Level 3
Level 3 covers merchants processing between 20,000 and one million card transactions annually. Similar to Level 2, these merchants must complete an annual SAQ and perform quarterly network scans.
PCI Level 4
Level 4 is for merchants processing fewer than 20,000 card transactions annually. These merchants must complete an annual SAQ and may be subject to quarterly network scans depending on their acquiring bank’s requirements.
Benefits of PCI Compliance
Adhering to PCI compliance offers several benefits, chiefly:
• Reduced risk of data breaches: Compliance helps protect against data breaches and cyberattacks by ensuring robust security measures are in place.
• Legal and financial protection: Compliance can help businesses avoid fines and legal penalties associated with data breaches and non-compliance.
• Improved reputation and customer trust: Businesses that comply with PCI standards are seen as more trustworthy, enhancing their reputation and customer loyalty.
How can RapidFire Tools help with PCI compliance?
Compliance Manager GRC by RapidFire Tools is a purpose-built tool designed to automate the PCI compliance process. The platform simplifies compliance by providing features such as automated assessments, continuous monitoring and comprehensive reporting. Compliance Manager GRC helps businesses stay compliant with PCI DSS standards effortlessly, allowing them to focus on their core operations.
Explore the features of Compliance Manager GRC and see how it can streamline your PCI compliance efforts by taking an interactive tour of the platform.
Automate PCI compliance with Compliance Manager GRC
PCI compliance is essential for protecting payment card information and avoiding significant financial and reputational damage. By adhering to PCI DSS standards, businesses can reduce the risk of data breaches, avoid legal penalties and build customer trust. Compliance Manager GRC by RapidFire Tools provides an efficient and effective solution for achieving and maintaining PCI compliance.
To learn more about how Compliance Manager GRC can benefit your business, request a live in-person demo today.
