What is PCI DSS compliance? Requirements & how to comply
April 6, 2021
April 6, 2021
For service providers, this typically means you are completing one PCI DSS assessment for your service and another as a merchant. Network segmentation between your merchant environment and your service environment can help lower the overall compliance burden and any bleed over from acquirer requirements. System components that store cardholder data must not be directly accessible from untrusted networks. When you store cardholder data where it can be directly accessed from the internet, you expose it to external threats. This requirement is designed to protect stored PANs from threat actors who, for some reason, are able to access your storage systems.
It is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Developed by major credit card companies like Visa, Mastercard, American Express, Discover, and JCB, PCI DSS aims to protect cardholders’ data from theft and fraud. PCI DSS compliance is required by any organization that handles cardholder data (CHD) or sensitive authentication data (SAD), regardless of size or industry. This includes merchants, acquirers, processors, issuers, and service providers involved in processing payment card transactions and storing or transmitting CHD or SAD. By being PCI DSS compliant, businesses handling payment card transactions demonstrate a strong commitment to information security. This not only reduces the risk of data breaches and fraudulent activities, but also strengthens customer trust.
These measures can include security systems limiting physical access, firewall configurations, strong system passwords, antivirus software, and a vulnerability management program. The PCI Token Service Provider (TSP) standard outlines stringent security measures and guidelines for the creation, management, and use of tokens to replace the credit card number, ensuring that these tokens are unique and non-reversible. The cybersecurity landscape is constantly evolving, with new and sophisticated threats emerging regularly. PCI DSS compliance requires that companies continuously monitor and analyze the threat landscape to understand and keep ahead of these risks.
These security controls create a secure environment that protects cardholder data from potential threats and maintains PCI DSS compliance. A secure network configuration is the cornerstone of protecting cardholder data. Firewalls play a crucial role in establishing a secure perimeter, preventing unauthorized access to sensitive information. A robust firewall configuration creates a strong first line of defense against potential threats.
However, this technological advancement brought with it a new set of challenges. The convenience of plastic cards made them attractive targets for fraudsters, who sought ways to exploit vulnerabilities in the system. As a result, fraud losses in card payments have steadily increased, with the Nilson Report predicting that global losses will reach $404 billion over the next decade.
This sets the groundwork for what assets should be involved in the PCI DSS compliance process. Achieving PCI DSS compliance requires organizations to streamline their security practices and implement robust procedures, which can lead to improved operational efficiency. Visit the PCI Security Standard Council website for the latest information on PCI DSS compliance requirements, training and qualification information, and access to PCI qualified professionals. The site also offers an extensive resource library that includes FAQs, a glossary, and a handy PCI DSS quick reference guide.
Beyond the technical capabilities of its MFT solutions, JSCAPE’s commitment to security is evident in its developmental practices, regular security testing and swift vulnerability management. JSCAPE offers not just a file transfer solution, but also a highly advanced and secure platform that simplifies compliance with PCI DSS and other regulatory standards. When PANs are transmitted over open, public networks like the internet, they must be protected by strong cryptography and security protocols. This is meant to prevent threat actors from intercepting and stealing data during your file transfers, especially in less secure networks.
PCI DSS compliance is mandatory for all entities that process, store, or transmit credit card information or sensitive authentication data. This includes merchants, payment processors, financial facilities, and service providers that handle cardholder data. The requirements apply regardless of the organization’s size or the volume of transactions it handles. First issued in 2004, the PCI DSS is a set of security standards developed by five major payment card brands that are designed to keep payment data safe from theft and exploitation.
Given the potential costs, remaining compliant with PCI DSS is crucial for any business that processes, stores, or transmits cardholder data. Although becoming and staying compliant can be rigorous and expensive, it is far more cost-effective than dealing with the penalties of non-compliance. According to the University of California, businesses may face fines of up to $500,000 per security breach if found non-compliant. Additionally, you would be required to notify all cardholders whose information may have been compromised, which can add to the overall cost. When factoring in customer notifications and recovery expenses, the total cost of a breach can exceed $500,000. There are four levels of PCI compliance, categorized based on the number of card transactions processed annually.
The RFC process is an avenue for PCI SSC stakeholders to provide feedback on existing and new PCI security standards and programs. The answer is not always clear, and this creates a lot of confusion in the payment card security space. As mentioned in the downloadable guide, pci dss stand for “How to secure file transfers in the breach era,” JSCAPE conducts exhaustive annual external and internal penetration (PEN) tests and vulnerability scans to ensure product security.
By deploying JSCAPE MFT Server and JSCAPE MFT Gateway as described above, you can provide external users access to files in your internally-deployed MFT server without revealing any internal IP address. As a reverse proxy, JSCAPE MFT Gateway listens for file transfer requests at its external IP address. External users will only connect to this IP address, and not the IP address of your MFT server. In case you’re not familiar with the term, a DMZ (Demilitarized Zone) is a network segment that acts as a buffer between internal networks and the internet. You would typically deploy your JSCAPE MFT Gateway instance on your DMZ, where it can act as an intermediary between your external users and your internally-deployed JSCAPE MFT Server instance. Intrusion detection/prevention techniques should be used to identify and/or prevent unauthorised network activity,.
PCI compliance levels are divided into four levels based on the total volume of credit, debit card, and prepaid card transactions over 12 months. Organizations must determine their transaction volume accurately and comply with the corresponding level’s requirements to ensure and maintain PCI DSS compliance. Maintaining the appropriate level of compliance is critical for securing e-commerce transactions, maintaining a secure environment for cardholder data, and preventing potential breaches. Furthermore, businesses must maintain an inventory of all systems and hardening procedures to ensure a comprehensive approach to data security. This includes documenting user access, roles, and privilege levels, as well as using video cameras and electronic access control mechanisms to monitor physical access to cardholder data systems. Implementing these measures helps organizations protect stored cardholder data effectively and maintain a secure environment.
In March 2022, PCI DSS version 4.0 was officially released, with March 31, 2024, set as the deadline for transitioning from version 3.2.1 to 4.0. This new version presents changes that aim to evolve the standard to meet emerging threats and challenges. These changes can be categorised into immediate and future dated (March 2025) requirements, providing sufficient time for preparation and implementation. The first step is understanding the extent of your environment where Cardholder Data is stored, processed, transmitted as well as the people, processes and technologies involved in doing so or that could impact its security.
BARR Advisory offers several services to help organizations successfuly achieve PCI DSS compliance—PCI DSS mapping, facilitated self-assessment questionnaire (SAQ), PCI DSS readiness engagement, and onsite PCI DSS readiness engagement. During the readiness assessment, BARR will assess your controls prior to your onsite assessment. Ensuring compliance might seem daunting, but with the right approach and expert guidance, businesses can confidently achieve and maintain PCI DSS compliance and avoid the severe consequences of security breaches. A QSA thoroughly evaluates an organization’s security infrastructure and practices to ensure they meet all PCI DSS requirements. It includes assigning unique IDs to personnel with computer access and using strong authentication methods.
Video surveillance can detect unauthorized access attempts, suspicious activities, and security breaches in real-time. Understanding who needs to comply, the benefits of meeting the standards, and the consequences of neglect are crucial for any organization handling cardholder data. Compliance is not just about avoiding penalties; it’s about safeguarding your business, protecting your customers, and ensuring a secure and trustworthy payment environment.
Customers expect businesses to manage their payment card information securely. Another valuable expert is the PCI Qualified Professional (QP), who helps businesses develop and implement effective data security standards and resources. The PCI DSS has four levels of compliance based on the number of credit card transactions that merchants process. To achieve PCI DSS compliance, a merchant should first determine which level of compliance it needs to achieve. PCI DSS has four levels, determined by the volume of credit card transactions you process annually; and the level you must achieve then determines how many PCI controls and processes you must have in place.
Stolen cardholder data can be sold on the dark web and used in future carding attacks and transaction fraud. Fraudsters can use stolen credit, debit and gift card numbers to make fraudulent purchases on e-commerce sites. They can buy goods directly or purchase gift cards that can be redeemed for high-value goods or sold online. Modern web applications are especially at risk of a client-side supply chain attack that could expose cardholder data and lead to non-compliance.