Created by the Payment Card Industry Security Standards Council (PCI SSC), which includes major payment card companies such as Visa, MasterCard, American Express, Discover, and JCB, the primary goal of PCI-DSS is to protect cardholder data and reduce payment card fraud.
The background and origin of PCI-DSS
The origins of PCI-DSS date back to the early 2000s, when major payment card brands developed their own data security programs. In 2004, these individual programs were unified under PCI-DSS, a common standard designed to harmonize and simplify security requirements across the industry.
PCI-DSS is therefore not a European standard, but an international standard created and maintained by the PCI SSC.
It is mandatory for any company worldwide that accepts, processes, stores, or transmits credit card information. This includes merchants, service providers, and financial entities, regardless of their geographic location.
The 12 security requirements of PCI-DSS
The PCI-DSS is structured into six main categories, comprising a total of 12 security requirements (no less!).
Build and maintain a secure network
- Requirement 1: Install and maintain a firewall configuration to protect cardholder data.
- Requirement 2: Do not use default passwords provided by vendors for systems and other security settings.
Protecting cardholder data
- Requirement 3: Protect stored cardholder data.
- Requirement 4: Encrypt the transmission of cardholder data over open public networks.
Maintain a vulnerability management program
- Requirement 5: Use and regularly update antivirus software.
- Requirement 6: Develop and maintain secure systems and applications.
Implement strict access control measures
- Requirement 7: Restrict access to cardholder data based on need.
- Requirement 8: Assign a unique ID to each person with access to a computer.
- Requirement 9: Restrict physical access to cardholder data.
Monitor and test networks regularly
- Requirement 10: Track and monitor all access to network resources and cardholder data.
- Requirement 11: Regularly test security systems and processes
Maintain an information security policy
- Requirement 12: Maintain a policy that addresses information security for all personnel.
A constantly evolving standard
PCI-DSS is not a static document! It evolves regularly to adapt to new threats and technologies (cloud, multi-factor authentication, etc.). The PCI SSC regularly publishes updates to the standard, as well as additional guidelines to help companies comply with security requirements.
How to achieve PCI-DSS compliance?
#1 Determine the applicable validation level
Companies must first determine their PCI-DSS validation level, which depends on the volume of annual payment card transactions.
Level 1: more than 6 million transactions per year
Level 2: between 1 and 6 million transactions per year
Level 3: between 20,000 and 1 million transactions per year (for e-commerce transactions)
Level 4: fewer than 20,000 e-commerce transactions per year or up to 1 million total transactions per year
#2 Identify the scope
Clearly identify the systems, processes, and personnel involved in processing payment card data. This will enable you to determine the boundaries of the CDE (Cardholder Data Environment), i.e., the environment where cardholder data is stored, processed, or transmitted.
This includes servers, networks, applications, and security equipment.
#3 Assess the risks
Once the scope has been defined, conduct a risk analysis that includes:
- analysis of internal and external threats;
- review of operational processes;
- evaluation of existing security measures.
This step allows potential vulnerabilities within the famous CDE to be identified, thereby determining the weak points that could compromise payment data security.
#4 Implement the necessary security controls
Based on the results of your risk analysis, specific security controls will need to be implemented to comply with PCI-DSS requirements.
These controls address six issues (no less!).
- Build and maintain a secure network by installing firewalls and using strong passwords.
- Protect cardholder data by encrypting credit card data and restricting access to it.
- Implement a vulnerability management program by regularly updating software and using antivirus software.
- Implement robust access control measures, restricting access to cardholder data based on need.
- Monitor access to network resources and regularly test security systems.
- More broadly, implement security policies that apply to the entire organization.
#5 Train and raise awareness among your staff
PCI-DSS compliance requires (and mandates) that all personnel involved in the processing of credit card data be properly trained and aware of best practices in data security.
So set up regular training sessions and updates on internal policies: these are essential for minimizing human error, which, as we know, is often the source of security breaches.
#6 Regular testing and audits
Once security controls are in place, you will need to perform regular tests to ensure that you remain PCI-DSS compliant. This may include vulnerability scans and penetration tests, performed annually or quarterly.
Depending on the level of data processing, an audit by a Qualified Security Assessor (QSA) may be required to validate this compliance.
If the assessment is inconclusive, it will be your responsibility to correct the identified vulnerabilities in order to achieve compliance. This may involve updating your software, network configurations, or even your security policies.
#7 Documentation and compliance report
The final step is to document all processes, controls, and test results to prove your compliance with the PCI-DSS standard.
Once any necessary remedial measures have been taken, you will need to submit a Report of Compliance (ROC) to the regulatory bodies or acquiring banks, depending on your company's level of commitment.
Such documentation is essential, not only to demonstrate your compliance, but also to ensure ongoing monitoring.
Is PCI-DSS compliance mandatory?
Yes, PCI-DSS compliance is mandatory for all companies that store, process, or transmit payment card information! This requirement applies to all entities, large and small, that accept or process credit, debit, or prepaid card payments from major card brands (Visa, MasterCard, American Express, Discover, etc.).
Why is it mandatory?
PCI-DSS isn't there to annoy you! Its primary goal is to reduce fraud by minimizing the risk of credit card data theft.
But it's not just a constraint: by complying with the standard, a company demonstrates its commitment to data security —which is sure to strengthen the trust of its customers and business partners.
Bonus: in the event of a data breach, PCI-DSS compliance can provide the organization with specific legal protection and reduce fines and penalties.
What about companies that do not comply with PCI-DSS requirements?
- Financial penalties: Acquiring banks and credit card companies may impose fines on noncompliant businesses. These fines can reach tens of thousands of dollars per month (!) depending on the severity and duration of the noncompliance.
- Increased transaction fees: Non-compliant companies may be charged higher transaction fees by their banking partners.
- Loss of authorization to process payments: in the event of serious non-compliance, a company may even lose its right to process card payments, which can (very significantly) affect its business.
- Liability for data breaches: If a data breach occurs and a company is found to be non-compliant with PCI-DSS, it may be held liable for the costs associated with fraud, investigations, and victim notification—not to mention the damage to its reputation.
Are there any exceptions to this compliance requirement?
There are no real exceptions to the PCI-DSS standard for companies that process card payments... but certain third-party solutions can help reduce the scope of compliance. For example, by using payment processing services that are themselves PCI-DSS certified, a company can transfer part of the responsibility for compliance to that provider. Please note: this does not remove the compliance obligation for the business itself!
Tips for achieving PCI-DSS compliance
Since its introduction, PCI-DSS has had a (very) significant impact on how companies manage payment card data security. It has standardized security practices across the industry and helped reduce incidents and fraud.
BUT the challenges and costs associated with such compliance are far from negligible! Here are a few tips to help you along the way.
Adopt industry best practices
- Separate payment processing networks from other corporate networks. This limits the scope of audits and strengthens your overall security.
- Be sure to keep all your systems up to date, using the latest security patches available to prevent vulnerabilities.
- Regularly train your employees on security policies and best cyber practices to ensure constant vigilance.
Use the right security tools
- Implement firewalls and intrusion detection systems (IDS/IPS) to protect internal networks and monitor unauthorized access.
- Use encryption technologies to protect credit card data in transit and at rest.
- Install antivirus and anti-malware software.
- Rely on Tenacy, our platform specializing in cybersecurity and compliance management, which supports the PCI-DSS framework!
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