PCI DSS sets a baseline level of protection for consumers and helps reduce fraud and data breaches across the entire payment ecosystem. It is applicable to any organization that accepts or processes payment cards.
Some business models do require the direct handling of sensitive credit card data when accepting payments, while others do not. Companies that do need to handle card data e. Even if card data only traverses its servers for a short moment, the company would need to purchase, implement, and maintain security software and hardware. Third party solutions e. Since card data never touches its servers, the company would only need to confirm 22 security controls, most of which are straightforward, such as using strong passwords.
If an organization handles or stores credit card data, it needs to define the scope of its cardholder data environment CDE. If an organization is unable to contain the CDE scope with granular segmentation, the PCI security controls would then apply to every system, laptop, and device on its corporate network. Regardless of how card data is accepted, organizations are required to complete a PCI validation form annually.
The way PCI compliance is validated depends on a number of factors, which are outlined below. Here are 3 scenarios in which an organization could be asked to show that it is PCI compliant:.
In addition, the PCI Council revises the rules every three years and releases incremental updates throughout the year, adding even more dynamic complexity. Popular Courses. Personal Finance Credit Cards. Table of Contents Expand. Understanding PCI Compliance. Requirements for PCI Compliance. Benefits of PCI Compliance.
The Bottom Line. Being PCI compliant reduces data breaches, protects the data of cardholders, avoids fines, and improves brand reputation. PCI compliance is not required by law but is considered mandatory through court precedent. Article Sources. Investopedia requires writers to use primary sources to support their work.
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Related Terms Mastercard Acquirer Definition A Mastercard acquirer is a financial institution that accepts and processes transactions made with a Mastercard card. The Value of Bank Identification Numbers A bank identification number BIN is the initial set of four to six numbers on a credit card that identifies the institution. Chip-and-Signature Card A chip-and-signature card is a type of credit card that encodes its information in a magnetic stripe as well as a square microchip.
Credit Card Cloning Credit card cloning is copying stolen card information using an electronic device and copying it to a new card. What Is a Compliance Program? A compliance program is a set of internal policies and procedures of a company to meet mandated requirements or to uphold the business's reputation. Partner Links. EBizCharge vs. QuickBooks Payments. Search Blogs. Search for: Search Button.
Is PCI compliance mandatory? But fines are just the beginning of the overall damage caused by noncompliance. Achieving the Level 1 compliance requires an onsite audit by a Qualified Security Assessor. February Braintree We enable beautiful commerce experiences so that people and ideas can flourish. More posts by this author.
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