PCI compliance means your company is taking the steps necessary to protect credit card data and reduce the risk of a security breach. If you’re in charge of IT, it’s important to understand what this process entails and how it works.
Why Is PCI Compliance Important?
- PCI compliance is important because protecting the payment card data of your customers is one way to protect your business and reputation. In other words, a compromised database can cause a lot of damage to a company’s brand.
- PCI compliance protects you from fines and penalties imposed by Payment Card Industry Security Standards Council or PCI SSC if they find any violations in their audit of your network security measures.
- You’ll be able to sleep better at night knowing that the personal information stored on your computers isn’t vulnerable to hackers or malicious insiders; this could save you time and money during an investigation into a breach involving credit card information (which can cost thousands per hour).
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What Is PCI DSS?
PCI DSS stands for Payment Card Industry Data Security Standard. It is a security standard that is required by all merchants that accept credit cards. The PCI DSS is designed to protect credit card data and prevent fraud, especially as it relates to e-commerce transactions.
From its name, the PCI DSS was developed by the Payment Card Industry Security Standards Council (PCI SSC). This international organization develops and maintains the standards necessary for payment industry stakeholders to protect their customer’s personal data effectively.
How Do You Meet PCI Compliance?
Whether you’re a merchant, a payment processor, or anything in between, you’ll want to make sure that your business is PCI compliant. This can be done by using one of four main payment processing systems:
- Credit card processing systems
- A payment gateway
- A point-of-sale system
- A mobile app
How Much Is PCI Compliance?
The cost of PCI compliance varies depending on the size and complexity of your business. On average, it costs $1 million to $2 million to become compliant with the PCI Data Security Standard (PCI DSS). Most of this cost is related to the number of transactions you process. The more transactions you process, the more money you will have to spend on security measures to protect those transactions from being breached.
It’s also important to note that a company’s annual revenue has little impact on its costs associated with meeting data security standards. Companies with annual revenues up to $25 million pay about three times less than those with greater than $25 million in annual revenues when it comes time for audit compliance testing and certification fees.
PCI compliance is a complex topic. There are many factors to consider, and you should always speak with your merchant account provider before making any changes. However, knowing the basics of what makes an ecommerce site PCI compliant will help you make informed decisions about your business.
