What is PCI DSS?
The Payment Card Industry Data Security Standard (PCI DSS) is a set of credit card data security standards designed by the PCI SSC to ensure that all organizations that store, work with or transmit credit card information create and maintain a highly secure environment. This standard was developed to protect cardholder data and reduce credit card fraud. PCI DSS is applicable to organizations of all sizes globally, ranging from small businesses to large multinational corporations, whenever cardholder data is handled.
Purpose of PCI DSS
The primary purpose of PCI DSS is to establish a standardized approach to securing cardholder information globally. As credit card fraud continues to pose significant risks to businesses and consumers, PCI DSS aims to protect cardholders by enforcing strict security practices, reducing the chance of data breaches, and building trust in financial transactions. By implementing PCI DSS, organizations demonstrate their commitment to data security, which is especially crucial in today’s digital economy, where breaches can severely impact reputation and consumer confidence.
Development of PCI DSS as a Security Standard
The Payment Card Industry Security Standards Council (PCI SSC), developed the PCI DSS. It is an an independent body formed by major credit card brands:
Visa
MasterCard
American Express
Discover
JCB International
These card brands collaborated to create unified security standards and established the PCI SSC to manage, enhance, and enforce PCI DSS across industries worldwide. Although the PCI SSC provides the standards, it is the responsibility of individual credit card companies and banks to enforce them.
Who enforces PCI DSS?
While the PCI SSC creates and maintains PCI DSS, it does not directly enforce it. Enforcement is typically carried out by acquiring banks and payment card networks (Visa, MasterCard, etc.) that require their merchants to comply with PCI DSS as part of their contractual obligations. These institutions conduct regular audits or assessments to ensure merchants and service providers meet PCI DSS requirements, with compliance overseen by either Qualified Security Assessors (QSAs) or through Self-Assessment Questionnaires (SAQs) for smaller entities.
PCI DSS Compliance Levels
PCI DSS compliance is organized into levels according to the volume of credit or debit card transactions an organization processes annually. Currently there are four levels and they determine the scope and frequency of PCI DSS assessments:
Level 1: Over 6 million transactions annually. Requires an annual onsite review by a QSA and quarterly network scans.
Level 2: 1 to 6 million transactions annually. Requires an annual SAQ and quarterly scans by an Approved Scanning Vendor (ASV).
Level 3: 20,000 to 1 million transactions annually. Typically, an annual SAQ and quarterly ASV scans are required.
Level 4: Fewer than 20,000 e-commerce transactions or up to 1 million in other transactions. Usually, an annual SAQ and quarterly ASV scans are suggested but depend on the acquirer’s discretion.
These levels help companies implement PCI DSS controls relevant to their transaction volume and risk exposure.
Control Objectives and Requirements of PCI DSS
PCI DSS outlines 12 core requirements organized into six control objectives. These provisions address key security areas:
1. Build and Maintain a Secure Network and Systems
Install and maintain a firewall configuration to protect data.
Avoid using default system passwords and other security settings supplied by the vendor.
2. Protect Cardholder Data
Protect stored cardholder data with encryption and data retention policies.
Encrypt transmission of cardholder data across open, public networks.
3. Maintain a Vulnerability Management Program
Use regularly updated antivirus software.
Develop and maintain secure systems and applications.
4. Implement Strong Access Control Measures
Restrict access to cardholder data on a need-to-know basis.
Assign a unique ID to each person with computer access.
Restrict physical access to cardholder data.
5. Regularly Monitor and Test Networks
Track and monitor all access to network resources and cardholder data.
Regularly test security systems and processes.
6. Maintain an Information Security Policy
Maintain an information security policy for employees and contractors.
Each requirement includes specific guidelines that organizations must follow to safeguard cardholder data effectively.
Rules under PCI DSS
PCI DSS enforces rules that represent best practices in cybersecurity. For example:
Encryption: Encryption transforms cardholder data into an unreadable format for unauthorized users. Only authorized individuals should be able to decrypt this data.
Access Control: This rule ensures that only authorized personnel must have access to sensitive information since it minimizes the risk of data exposure.
Network Monitoring: Continuous monitoring helps organizations identify suspicious or unauthorized activity, allowing for prompt responses to potential threats.
Industries impacted by PCI DSS
Any industry that processes, stores, or transmits credit card data must comply with PCI DSS. This includes:
Retail (online and brick-and-mortar stores)
Hospitality (hotels, restaurants)
Healthcare (hospitals, medical practices handling payment data)
E-commerce (online merchants)
Financial Services (banks, financial institutions)
Education (universities handling tuition payments)
Compliance ensures that these industries safeguard cardholder data, protecting both the organizations and their customers.
Penalties & Fines for Non-Compliance with PCI DSS
Non-compliance with PCI DSS can result in severe consequences:
Fines: Card networks may impose fines ranging from $5,000 to $100,000 monthly, depending on the severity and duration of the non-compliance.
Increased Transaction Fees: Acquirers may increase transaction fees as a penalty.
Legal Action: In the event of a data breach, the organization may face lawsuits or settlements with affected parties.
Loss of Merchant Account: Continued non-compliance could result in revocation of the merchant account, barring the organization from processing card payments.
These penalties emphasize the importance of PCI DSS compliance to avoid financial and reputational damage.
Employee Responsibilities under PCI DSS
Employee participation is vital to PCI DSS compliance. Responsibilities include:
Understanding PCI DSS Requirements: Employees should be trained on PCI DSS rules, especially those applicable to their roles.
Data Handling: Employees should adhere to data retention policies, only storing information as long as necessary.
Use of Secure Practices: Employees must use unique, complex passwords and avoid sharing credentials.
Reporting Suspicious Activity: Employees should be vigilant for unusual activities and report them immediately to IT or security departments.
Regular Training: Ongoing training sessions ensure employees remain up to date on security protocols.
By educating employees, organizations can ensure a culture of data security which will help to prevent data breaches and enhance PCI DSS compliance.
Best Practices for Compliance with PCI DSS
Here are essential best practices to ensure ongoing PCI DSS compliance:
Regular Assessments and Scans: Regularly conduct vulnerability scans and audits to identify potential security weaknesses.
Data Minimization: Avoid storing sensitive cardholder information unless absolutely necessary, reducing risk exposure.
Encrypt All Data: Ensure that sensitive data, especially cardholder data, is encrypted both in storage and during transmission.
Implement Strong Access Controls: Restrict data access based on employee / vendor roles and responsibilities to ensure only authorized personnel can access sensitive information.
Maintain Updated Software: Patch software and systems regularly to address possible vulnerabilities that could be exploited by cybercriminals.
Develop an Incident Response Plan: Have a clear incident response plan ready for any security breach to minimize impact and recover swiftly.
How databrackets can help you prove your compliance with PCI DSS
In PCI DSS compliance, one of the requirements is to get your in-scope environment scans every quarter by Approved Scan Vendors (ASV) and have them attested. Apart from getting the scan, organizations also need to identify if there are any issues in their environment. Till the issues are resolved, ASV vendors do not attest the scan. Hence, organizations need to complete their remediations and have a report to prove that, which they can submit further to prove their compliance with PCI DSS.
Experts at databrackets have worked in the field of Pen Testing, Vulnerability Assessment and Compliance for over 12 years. ASVs work with us to conduct scans of PCI DSS compliant organizations and we also help organizations remediate & fix any issues that are detected in your ASV Scan. We can help you stay compliant with PCI DSS through remediation, automated scanning & documentation support to prove you are complying with the standard. Schedule a Consultation if you would like to Connect with an Expert to understand how we can customize our services to meet your specific requirements.
Overview of databrackets
Our team of security experts has supported organizations across a wide variety of industries to align their processes with security frameworks like ISO 27001:2022, SOC 2, HIPAA, 21 CFR Part 11, NIST SP 800-53, NIST Cybersecurity Framework, NIST SP 800-171, GDPR, CMMC etc. We are an authorized certifying body for ISO 27001 and a Registered Practitioner Organization for CMMC. We also have partnerships to help clients prepare for and obtain other security certifications.
We are constantly expanding our library of assessments and services to serve organizations across industries. Schedule a Consultation if you would like to Connect with an Expert to understand how we can customize our services to meet your specific requirements.
At databrackets, we are a team of certified and experienced security experts with over 12 years of experience across industries. We have helped organizations of all sizes comply with cybersecurity best practices and prove their compliance with a wide variety of security standards to enable them to expand their business opportunities and assure existing clients of their commitment to protecting sensitive information and maintaining high standards of security and privacy.
We offer 3 Engagement Options to help you prove your compliance with HIPAA – our DIY Toolkit (ideal for MSPs and mature in-house IT teams), and Hybrid or Consulting Services. We have HIPAA Training Modules for staff and privacy officers which can be customized to include your privacy policies. You can partner with us to prove your compliance on an annual basis and engage our team to support your organization if you are audited.
Overview of databrackets
Our team of security experts has supported organizations across a wide variety of industries to align their processes with security frameworks like ISO 27001:2022, SOC 2, HIPAA, 21 CFR Part 11, NIST SP 800-53, NIST Cybersecurity Framework, NIST SP 800-171, GDPR, CMMC etc. We are an authorized certifying body for ISO 27001 and a Registered Practitioner Organization for CMMC. We also have partnerships to help clients prepare for and obtain other security certifications.
We are constantly expanding our library of assessments and services to serve organizations across industries. Schedule a Consultation if you would like to Connect with an Expert to understand how we can customize our services to meet your specific requirements.
Author: Aditi Salhotra, Digital Marketing and Business Development, databrackets.com
Aditi is a Digital Marketing and Business Development Professional at databrackets.com. She graduated with honors in Marketing from Sheridan College, Canada. In addition to her current profile, she contributes to Product Development and Content Creation. She is a strong advocate of Good Cyber Hygiene and white hat SEO techniques. She is proud of the company’s mission to safeguard organizations from cyber threats and ensure their business continuity in adverse situations.
Technical Expert: Srini Kolathur, Director, databrackets.com
The technical information presented in this blog has been carefully reviewed and verified by our Director, Srini Kolathur. Srini is results-driven security and compliance professional with over 20 years of experience supporting, leading, and managing global IT security, compliance, support, and risk assessment in fortune 100 companies. Some of his key areas of focus are SOC 2, ISO 27001, NIST 800-171, NIST 800-53, NIST Cybersecurity Framework, HIPAA, Security Risk Assessment, CMMC 2.0 among others. He is a CMMC Registered Practitioner (RP), CISSP, CISA, CISM, MBA. He is active in several community groups including Rotary International and TiE.