Payment Gateways

How to Ensure PCI DSS Compliance for Your Payment Gateway?

The Payment Card Industry Data Security Standards (PCI DSS) is a security standard for any entity that stores, processes or transmits cardholder and sensitive authentication data. It establishes a foundational level of consumer protection, helping minimize fraud and data breaches throughout the entire payment ecosystem. This standard applies to any organization that accepts or processes payment cards.

Who Needs a PCI DSS-Compliant Payment Gateway?

With a solid grasp of PCI Complaint payment gateways, it’s important to understand who needs them for their business operation. Primarily, any merchant that processes payment card transactions requires PCI-compliant payment gateways. This includes e-commerce websites, subscription services, retailers, online marketplaces and essentially any business handling sensitive card data to ensure its security during the processing of transactions. Additionally, payment services providers who facilitate payment services for mechanisms must also implement PCI Compliance to protect the card data.

Version 4.0 of PCI DSS Effective from March 31, 2024

Since 2005, over 11 billion records of consumers have been compromised in more than 8500 data breaches. However, minimum data security was established to enhance consumer data safety and maintain trust in the payment ecosystem. In 2006, Visa, Mastercard, American Express, etc., formed the Payment Card Industry Security Standard Council (PCI SSC) to look at and manage security standards for companies handling data of credit cards.

Before the PCI SSC was established, each credit card company had its own security standards programs with similar requirements and goals. These programs are unified under the PCI SSC to create a single standard, and PCI DSS compliance for your payment gateway ensures a baseline level of protection for consumers and banks in the digital age.

Three Key Components of PCI DSS Compliance for Your Payment Gateway

Below are the three key components of PCI DSS Compliance for your payment gateway such as:

1. Handling Card Data

Some business models require handling sensitive credit card data directly when accepting payments or obtaining a payment gateway license. Companies handling untokenized PAN on payment pages must meet all security controls in PCI DSS. Also, companies that do not need to handle sensitive credit card data should use third-party solutions to securely accept and store the data and reduce complexity, cost, and risk.

2. Storing Data Securely

If an organisation handles or stores data on credit cards, it must define the scope of its cardholder data environment, encompassing all people, processes and technologies involved. Properly segmenting the payment environment from the rest of the business is important to limit the scope of PCI validation.

3. Annual Validation and PCI DSS Requirements

Organisations must complete a PCI validation form annually, which varies based on payment processor requirements, business partner agreements, and customer requests.

Know the Requirements of PCI DSS Compliance

The PCI DSS standard encompasses 12 core requirements that reflect best security practices, such as:

• Implement and maintain network security controls.
• Implement secure configuration for every system component.
• Safeguard stored cardholder data.
• Defend systems and networks against malicious software.
• Create and uphold secure systems and software.
• Restrict access to system components and cardholder data according to the needs of the business.
• Authenticate and identify users accessing system components.
• Restrict physical access to cardholder data.
• Recorded and oversaw access to system components and cardholder data.
• Periodically test the security of systems and networks.
• Support information security through organizational policies and procedures.

Who Requires PCI Compliance?

Obtaining a PCI compliance certificate is crucial for any company that wants to conduct business and accept payments using bank cards. This includes financial institutions, online stores, retailers, and all organizations providing goods and services. Two types of business require PCI DSS certification:

1. Merchants

These are businesses that accept card payments from customers. This category includes retail stores and e-commerce services. Merchants must obtain a compliance certificate with their payment gateway or store card data.

2. Service Providers

These businesses offer services related to the card transaction process. This includes services that transfer or charge money to a customer’s card. The service providers include processing centres, data backup facilities, and organizations involved in card personalized, among others.

What is the Step-By-Step Guide to PCI DSS compliance?

The step-by-step guide to PCI DSS compliance involves the compliance level applied to the organization based on the transaction volume and many more. Below is the step-by-step guide to PCI DSS compliance such as:

Choose the Level or Know the Requirements

Achieving PCI DSS compliance for your payment gateway begins with identifying which level applies to your organization based on transaction volume. There are four compliance levels, such as level 1 for an organization processing over 6 million Visa or Master Card transactions, 2.5 million American Express transactions annually or those with a data breach.

Level 2 is for that processing between 1 and 6 million transactions per year; level 3 is for organizations with 20,000 online transactions or up to 1 million total transactions annually, and level 4 applies to businesses that process fewer than 20,000 online transactions annually or up to 1 million total transactions per year.

Map Your Data Flows

Identify and document all consumer-facing payment areas and how cardholder data is processed, stored and accessed. Collaborate with IT and security teams to create a detailed map of systems, network connections, and applications that handle credit card data.

Check Security Controls and Protocols

Ensure that security configurations and protocols, like transport layer security, are in place to protect cardholder data, and review and align your security controls with the 12 PCI DSS requirements, which also overlap with other privacy standards such as GDPR and HIPAA.  

Monitor and Maintain Compliance

PCI DSS compliance is ongoing and requires regular monitoring. Establish a dedicated PCI Compliance team, including security, technology, finance, and legal department members, to manage and maintain compliance through regular reporting and assessment.

Advantages of Using a PCI DSS Compliance Payment Gateway

Utilizing a PCI DSS compliance payment gateway offers numerous benefits for online merchants and businesses, such as:  

1. Legal & Regulatory Compliance

The payment gateway adhering to PCI DSS standards helps businesses meet legal and regulatory requirements for data security. Using a PCI-compliant payment gateway ensures the company operates within applicable laws and regulations, avoiding legal challenges related to non-compliance.

2. Enhanced System Security

A PCI-compliance payment gateway uses advanced technologies to securely handle and store sensitive card data, ensuring strict adherence to requirements and regulations to protect customers from fraud.

3. Global Reach

PCI DSS standards are internationally recognized and accepted in many countries. Merchants using compliance software can accept transactions worldwide, confidently expanding their customer base while meeting established security standards.

4. Efficient Transactions Processing

The PCI DSS compliance payment gateway is designed to be highly efficient and to process transactions quickly and securely. This minimized payment authorization and processing delays, ensuring a seamless and fast checkout experience.

5. Improved Customer Experience

Customers purchasing on the website using PCI DSS compliance for your payment gateways experience a secure and hassle-free transaction process, protecting them from fraud. This positive experience maintains customer loyalty and encourages business.

Business Failing to Meet PCI DSS Compliance

If a business fails to meet PCI DSS standards, it could face fines of up to $100,000 per month and higher transaction fees. More severe consequences include the risk of permanently losing its banking relationships, which would prevent it from processing card payments in the future. Additionally, a data breach could result in an increased PCI DSS compliance level as a penalty for the merchant.

Conclusion                                                

PCI DSS Compliance assessment and validation typically occur annually, but maintaining compliance is an ongoing and significant effort evolving continuous assessment and remedy. As a company expands, its core business logic and processes will evolve, leading to changes in compliance requirements. For instance, an online business may open physical stores, enter new markets or launch a customer support centre. Any new activities involving payment card data should prompt a proactive review to determine if they impact the PCI validation methods and necessitate re-validation of compliance.

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