It is imperative that, as a founder, you view compliance as a strength rather than an operational or financial burden. The business development team or your prospects will eventually press you to provide proof of compliance.
According to the 2023 Data Breach Investigations Report, nearly 30% of data breaches involved small businesses, with 70% of those breaches targeting payment card information. The Payment Card Industry Data Security Standard (PCI DSS) is a critical framework designed to protect cardholder data and secure payment processes.
Are you pondering whether now is the ideal moment for your company to achieve PCI DSS compliance? Then you should read this BLOG!
To assist you in becoming PCI DSS compliant, it guides you through the subtleties of why PCI compliance requirements are necessary, their significance, the costs of non-compliance, and gives PCI DSS compliance recommendations.
What Is PCI DSS Compliance?
A set of security standards was created in 2006 by significant credit card companies (American Express, Discover, JCB International, Mastercard, and Visa) and financial institutions. We dubbed this collection of security requirements PCI DSS.
PCI DSS compliance refers to adhering to a set of security standards developed by the Payment Card Industry Security Standards Council (PCI SSC). Credit card companies must comply with these PCI DSS standards to maintain a secure environment. The goal of PCI DSS is to protect cardholder data from breaches and fraud by implementing robust security measures and controls.
12 PCI DSS Compliance 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 using strong encryption methods.
- Encryption to transmit cardholder data over an open, public network.
- Use and Regularly Update Antivirus Software or programs to protect all systems.
- Develop and Maintain Secure Systems and Applications through regular updates and patches.
- Restrict Access to Cardholder Data on a business need-to-know basis.
- Assign a Unique ID to Each Person with computer access to track user actions.
- Restrict Physical Access to Cardholder Data to prevent unauthorized persons from gaining access.
- Track and Monitor All Access to Network Resources and Cardholder Data through audit logs.
- Vulnerabilities should be identified regularly by testing security systems and processes.
- Make sure your employees and contractors are aware of your company’s information security policy.
Types Of PCI DSS Compliance Groups
The council, retailers, service providers, card issuers, merchant banks, QSAs (Qualified Security Assessors), and ASVs (Approved Scanning Vendors) are the six groups engaged in PCI DSS Compliance.
PCI SSC
The council, which was established by major credit card companies Visa, Mastercard, American Express, Discover, and JCB, is in charge of creating and upholding guidelines for the security of cardholder information.
Merchants
Merchants are companies or organizations that are in charge of adhering to PCI DSS and that gather, store, or handle cardholder data.
Service providers
Businesses that manage customer information on behalf of retailers. These might include companies that offer managed security services, hosting, cardholder data storage, etc.
Issuers of cards and merchant banks
Customers receive payment cards from card issuers or brands, while merchant banks are financial organizations that let retailers accept payments.
Qualified Security Assessors, or QSAs
These include the PCI compliance assessors with PCI DSS reports that evaluate businesses or service providers.
ASVs, or approved scanning vendors
Companies that have been approved by the PCI SSC to do vulnerability assessments for retailers or service providers.
PCI DSS compliance is also categorized into different levels based on the volume of transactions processed by an organization:
- Level 1: Merchants processing over 6 million transactions annually.
- Level 2: Merchants processing 1 to 6 million transactions annually.
- Level 3: Merchants processing 20,000 to 1 million e-commerce transactions annually.
- Level 4: Merchants processing fewer than 20,000 e-commerce transactions annually and up to 1 million transactions annually.
Why do Organizations Need PCI DSS Compliance?
Organizations need PCI DSS compliance to protect their customer’s payment card information from theft and fraud. Compliance also helps in maintaining customer trust and avoiding the severe financial and reputational damage that can result from data breaches. Additionally, many payment processors and banks require merchants to be PCI DSS compliant as a condition of doing business.
In summary, PCI compliance standards aid in the implementation of several technological security measures to protect cardholder data, such as physical security, measures, password management, and documentation of the policies of the current security program.
Actually, according to a survey by 30% of small firms, they are unaware of the consequences of failing to comply with PCI DSS 4.0.
**Note- Also read the importance of PCI DSS for small businesses.
Benefits Of Implementing PCI DSS Compliance
Enhanced Security: Implementing PCI DSS helps in safeguarding sensitive cardholder data through robust security measures.
Reduced Risk of Data Breaches: Adhering to PCI DSS standards significantly lowers the risk of data breaches and associated costs.
Increased Customer Trust: Customers will feel more confident in your company’s capacity to secure their payment information if you can demonstrate PCI DSS compliance.
Avoidance of Fines: Non-compliance can result in hefty fines and penalties from payment card networks.
Competitive Advantage: PCI DSS compliance can differentiate your business as a secure and trustworthy entity in the marketplace.
What Can Happen If You Are Not PCI DSS Compliant?
1) Sanctions
Banks and credit card issuers impose fees that range from $5,000 to $100,000 or more each month. Additionally, if a company receives a fee for violating PCI compliance standards, it may potentially be kicked off the credit card processing network. Consequently, the company would cease to be its clients’ payment processors. For companies that depend on credit cards for revenue, this can be disastrous.
2) An example of a bad actor
Being PCI DSS compliant does not guarantee your company is immune to breaches. Additionally, the penalty amount is much decreased when an incident occurs at a firm that complies with PCI DSS. The firm followed the PCI DSS compliance framework in protecting its secure systems, therefore that’s why it performed everything necessary.
Furthermore, a security breach increases a company’s financial burden since it requires them to take the following actions:
- Employ a team to investigate to determine the breach’s origin.
- Make credit monitoring required for clients whose information was hacked.
- Address any lawsuits that arise.
- Deal with income loss resulting from merchant agreements being canceled (when your firm is continually non-compliant)
Dealing with each documented victim often costs $150. Multiplying this value by the total number of individuals impacted by a breach might result in a significant cost.
3) Court Cases
Businesses are usually sued by vendors and consumers for data breaches. For instance, when a breach exposed private data about 40 million accounts, Target was forced to pay a punishment of $18.5 million.
4) Effect on Brand and Revenue
Client trust in the company plummets when confidential information is compromised, which results in bad press and diminished brand value. Bad reputations also make it more difficult to draw in new business and keep hold of current clientele, which has a direct negative impact on future earnings.
How To Become PCI DSS Compliant?
Achieving PCI DSS compliance is a systematic process that involves understanding the requirements, assessing your current security posture, remediating any gaps, and continuously maintaining compliance. Here’s a detailed step-by-step guide to becoming PCI DSS compliant:
Step 1: Understand the PCI DSS Requirements
Before you begin the compliance process, it’s essential to familiarize yourself with the PCI DSS requirements. The standard comprises 12 requirements grouped into six control objectives:
- Build and Maintain a Secure Network and Systems
- Protect Cardholder Data
- Maintain a Vulnerability Management Program
- Implement Strong Access Control Measures
- Regularly Monitor and Test Networks
- Maintain an Information Security Policy
Each requirement includes specific sub-requirements that detail the necessary controls and practices to secure payment card data.
Step 2: Determine Your Compliance Level
The PCI DSS standard categorizes merchants into four levels based on the volume of transactions processed annually:
- Level 1: Over 6 million transactions annually
- Level 2: 1 to 6 million transactions annually
- Level 3: 20,000 to 1 million e-commerce transactions annually
- Level 4: Fewer than 20,000 e-commerce transactions annually and up to 1 million transactions annually
Determine your compliance level to understand the specific requirements and validation procedures applicable to your organization.
Step 3: Conduct a Self-Assessment
For most organizations, the first step toward compliance is conducting a self-assessment using the appropriate Self-Assessment Questionnaire (SAQ). There are different types of SAQs, each designed for different merchant environments. Select the one that matches your business model and follow the guidelines to complete the assessment.
Step 4: Perform a Gap Analysis
A PCI DSS gap analysis helps identify areas where your current security measures fall short of the requirements. This involves a thorough review of your existing systems, policies, and procedures. The gap analysis should highlight specific areas that need improvement to meet compliance standards.
Step 5: Develop a Remediation Plan
Based on the results of the gap analysis, develop a remediation plan to address any identified vulnerabilities and gaps. This plan should outline the necessary steps to achieve compliance, including:
- Implementing or upgrading security technologies (e.g., firewalls, encryption)
- Updating policies and procedures
- Conducting staff training and awareness programs
- Enhancing access controls and monitoring systems
Step 6: Implement Security Controls
Execute the remediation plan by implementing the required security controls and measures. This involves both technical and procedural changes, such as:
- Installing and configuring firewalls
- Encrypting stored and transmitted cardholder data
- Deploying antivirus software and ensuring it is regularly updated
- Developing secure systems and applications through regular patching
- Limiting cardholder data access to those who need to know
- Giving those with computer access distinctive IDs
- Implementing robust physical security controls
Step 7: Conduct Internal and External Assessments
Once the necessary controls are in place, conduct internal assessments to ensure they are functioning correctly and meeting PCI DSS requirements. For organizations at higher compliance levels (e.g., Level 1), an external Qualified Security Assessor (QSA) must conduct an on-site assessment to validate compliance.
Step 8: Complete the Attestation of Compliance (AOC)
After successfully implementing the security controls and passing assessments, complete the Attestation of Compliance (AOC). The AOC is a formal declaration that your organization complies with PCI DSS requirements. This document must be signed by an executive officer and submitted to your acquiring bank or payment processor.
Step 9: Submit the Self-Assessment Questionnaire (SAQ) and AOC
Submit the completed SAQ and AOC to your acquiring bank or payment processor as evidence of your compliance. For organizations undergoing external assessments, the QSA will also provide a Report on Compliance (ROC) to accompany your submission.
Step 10: Maintain Compliance
PCI DSS compliance is a continuous process rather than an isolated occurrence. Continuously monitor your security systems and practices to ensure they remain effective and compliant. Key activities to maintain compliance include:
- Testing and upgrading security procedures and systems regularly
- Carrying out recurring audits, both internal and external
- Keeping up-to-date with PCI DSS updates and industry best practices
- Supplying staff with ongoing education and awareness campaigns
**Note- It is also recommended to connect with the best PCI DSS Compliance Consultants to get the best compliance results. Choose our expert team to be more compliant.
What Is The Cost Of PCI DSS Compliance?
Numerous factors, including merchant level, organization size, and existing compliance levels, influence PCI compliance expenses.
As a result, fees for various compliance specialists vary based on the organization’s overall requirements.
However, the typical cost of adopting PCI compliance standards and obtaining compliance (with certification) can range from $5000 to $20000 for small to medium-sized firms and from $50000 to $200000 for big organizations.
By using Socurely, you may cut these costs by 50% as we offer PCI DSS Compliance automation.
Get PCI DSS Compliant With Socurely
The whole point of Socurely is to provide a “unique-to-you” compliance solution. Fundamentally, Socurely is driven by a unique automation engine that does the majority of the work involved in validating your company’s compliance.
Step 1: Mapping Entities for a Stronger Security Position
The primary goal of compliance is to enhance your organization’s security posture. Unlike the traditional “checking a box” approach, Socurely focuses on protecting individual entities within your system. By identifying and securing these critical components, we save you time and money while meeting numerous compliance requirements efficiently. Our rigorous and templated method ensures that every aspect of your security infrastructure is robust and well-protected.
Step 2: Implementing Edge Cases
Our automation engine is designed to handle edge cases effectively. This means we can address unique scenarios and complex compliance challenges specific to your organization. By considering and implementing these edge cases, Socurely ensures comprehensive coverage and minimizes vulnerabilities that might otherwise be overlooked.
Step 3: Cataloging Evidence Automatically
One of the most time-consuming aspects of achieving compliance is gathering and cataloging evidence. Socurely’s automation engine simplifies this process by automatically collecting and organizing the necessary documentation. This not only reduces the administrative burden on your team but also ensures that all required evidence is accurately captured and readily available for audits.
Step 4: Providing an Audit Report or SAQ
Once all the necessary steps have been completed, Socurely helps you prepare and submit your audit report or Self-Assessment Questionnaire (SAQ). Our team ensures that your documentation is thorough and compliant with PCI DSS standards, providing you with the confidence that your submission will meet all requirements. We support you throughout the entire process, from initial assessment to final submission, making PCI DSS audit a seamless and stress-free experience.
FAQ
What happens if I’m not PCI DSS compliant?
Non-compliance can result in financial penalties, legal liabilities, reputation damage, and loss of business.
Is it required to comply with PCI DSS?
Although PCI DSS compliance is not required, according to the official PCI compliance criteria, it is a way to make sure that your company can handle card transactions without having to pay hefty transaction fees to financial institutions and other players in the payment industry. You can instill confidence in your users and prospective business partners that your company has the policies and procedures in place to secure data by adhering to PCI DSS compliance.
Which six PCI DSS compliance groups are there?
Six PCI DSS compliance groups exist. They are as follows:
- Requirements for a secure network
- Cardholder Information Needs:
- The requirements for vulnerability management:
- Evaluate the Controls Monitoring and testing requirements are necessary.
- Security policy specifications.
Conclusion
Achieving PCI DSS compliance is not only a regulatory requirement but also a critical component of securing payment card data and protecting your organization from data breaches and fraud. By understanding the requirements and benefits of PCI DSS, organizations can take proactive steps to enhance their security posture and build trust with their customers.
Also, choose Socurely and streamline your journey to PCI DSS compliance, benefiting from our expertise and advanced automation technology. Let us help you secure your payment data and build trust with your customers.
