PCI compliance is a set of regulations that ensure the security of credit and debit card transactions. It was developed in response to the increasing number of data breaches that have affected both merchants and consumers. The PCI Security Standards Council (SSC) was formed in 2006 as a joint initiative between Visa and Mastercard to create and manage these standards. Compliance was set in place to protect cardholder data, which is any information that ties a credit or debit card to an individual’s identity. This can range from bank account numbers and social security numbers to name and address information.
Why Does PCI Compliance Matter?
Merchants are responsible for complying with these standards because they are the ones who store, process, and transmit cardholder data. Non-compliance can result in hefty fines from the credit card companies, as well as increased costs for merchants due to increased security measures. In addition, a data breach can damage a merchant’s reputation and cost them customers.
Consumers should also be aware of PCI compliance because it affects their safety. Every time they hand over their credit or debit card to a merchant, they are trusting that the business is taking the necessary precautions to protect their information. A data breach can put consumers at risk for identity theft and other financial crimes.
What Are the PCI Compliance Requirements?
The PCI Security Standards Council has released a series of compliance standards that can be grouped into six main categories.
- Build and Maintain a Secure Network
This includes installing firewalls, keeping software updated, and restricting access to systems based on need-to-know criteria. Creating a formal security policy is also required for this standard.
- Protect Cardholder Data
Merchants must take steps to protect cardholder data from unauthorized access, use, or disclosure. This includes encrypting data and using strong authentication methods.
- Maintain a Vulnerability Management Program
This standard requires merchants to actively identify and assess vulnerabilities in their systems and take action to fix them.
- Implement Strong Access Control Measures
Merchants must restrict access to all systems based on a user’s need to know, and limit their ability to modify, use, or disclose cardholder data. This standard also requires the implementation of strong authentication methods throughout the organization.
- Regularly Monitor and Test Networks
This includes deploying automated tools for vulnerability management and intrusion detection. In addition, organizations must monitor network activity and cardholder data access.
- Maintain an Information Security Policy
This requires merchants to develop, implement, and maintain a formal policy for information security. This includes policies on mobile devices, including requirements for strong authentication when using these devices to access sensitive systems or data. All employees must also be educated on this policy.
How Can I Become PCI Compliant?
PCI compliance is not a one-time event – it is an ongoing process. In order to become and remain compliant, merchants must implement the appropriate security measures and regularly monitor their systems. There are a number of commercial products available to help with this process, such as firewalls and penetration testing tools. If you would like assistance in meeting the PCI compliance requirements, we encourage you to contact a qualified security company for more information.
Some companies may also offer PCI certification services. This is not required by the SSC and does not mean that your organization has successfully completed steps toward compliance – it simply means that an approved third-party has assessed your security posture and found it to be in compliance with the PCI DSS.
PCI compliance is a critical part of safeguarding credit and debit card information. By understanding the requirements and taking the necessary steps to become compliant, merchants can protect their customers and themselves from data breaches and other security threats.