As a business that accepts payments online, it’s important to understand the Payment Card Industry Data Security Standard (PCI DSS) and how to comply with its requirements. Failure to meet PCI compliance standards can result in costly non-compliance fees from the credit card companies. To help you stay compliant and avoid these hefty fines, we’ve compiled this guide to understanding PCI standards, how to stay compliant and the potential financial consequences of non-compliance.
First, let’s look at why PCI compliance is important. The goal of the PCI DSS security standard is to help ensure that credit card information remains secure when stored or transferred electronically. It requires merchants to adhere to certain security and data handling protocols in order to maintain the safety of consumer’s financial data.
The PCI DSS is comprised of 12 general requirements:
- Install and maintain a firewall configuration to protect cardholder data
- Do not use vendor-supplied defaults for system passwords and other security parameters
- Protect stored cardholder data
- Encrypt transmission of cardholder data across open, public networks
- Use and regularly update anti-virus software
- Develop and maintain secure systems and applications
- Restrict access to cardholder data by business need-to-know
- Assign a unique ID to each person with computer access
- Restrict physical access to cardholder data
- Track and monitor all access to network resources and cardholder data
- Regularly test security systems and processes
- Maintain a policy that addresses information security for all personnel
Organizations must be able to demonstrate compliance with these 12 requirements in order to avoid pci non-compliance fees. To that end, it’s important to have a comprehensive understanding of each requirement and how it applies to your specific business.
Failure to comply with PCI DSS can result in severe financial penalties from credit card brands and payment processors. Depending on the severity of the non-compliance and how long it has been ongoing, these fees can range from a few thousand dollars up to $100,000 or more. Additionally, failing to comply with PCI DSS could lead to the termination of your merchant services agreement and the loss of customers who may feel their data is not secure.
By following the 12 requirements outlined in this guide and staying up-to-date on the latest PCI standards, you can help ensure your business remains compliant and avoid costly non-compliance fees.