Understanding PCI DSS and why it matters

Accepting credit card payments is the foundation of modern eCommerce. However, with this convenience comes a significant responsibility: safeguarding sensitive customer information.

With 25% of incidents in retail and eCommerce last year involving stolen credit card details*, ‌it's important to make data security a top priority for transactions.

To protect both your business and your customers’ sensitive data, understanding and adhering to the Payment Card Industry Data Security Standard (PCI DSS) is essential.

What is PCI DSS?

PCI DSS is a set of security standards designed to ensure all businesses that accept, store, process, or transmit cardholder data maintain a secure environment. Established in 2004 by five major credit card providers (Visa, Mastercard, American Express, Discover, and JCB), PCI DSS has been essential in protecting cardholder data and reducing credit card fraud.

Why is PCI DSS important in digital finance?

PCI DSS is particularly important in digital finance. Proper compliance safeguards sensitive payment card data, ensuring secure transactions and protecting both businesses and consumers. By applying these security standards, businesses can significantly reduce the risk of data breaches, protect sensitive customer data, and maintain a strong security framework.

Who must comply with PCI DSS?

Any merchant or business that accepts, stores, or processes credit or debit card information is required to be PCI DSS compliant. This is often a contractual obligation with major credit card providers, and the level of compliance required can vary based on the volume of card transactions processed.

What are the levels of PCI DSS compliance?

PCI DSS compliance is categorised into four levels based on the volume of card transactions a business has processed in the past 52 weeks.

It’s important to note that Visa, Mastercard, American Express, Discover, and JCB have each established their own PCI DSS compliance programs. Below is a sample of Visa’s PCI DSS compliance standards:

What are the 12 core requirements of PCI DSS?

There are 12 core technical and operational requirements of PCI DSS, which are grouped into six goals. According to the PCI Security Standards Council, they are as follows:

🔸Build and maintain a secure network and systems

1. Install and maintain network security controls.

2. Apply secure configurations to all system components.

🔸Protect account data

3. Safeguard all cardholder data.

4. Use strong cryptography to protect cardholder data during transmission over open, public networks.

🔸Maintain a vulnerability management program

5. Safeguard all systems and networks from malicious software

6. Develop and maintain secure systems and software

🔸Implement strong access controls

7. Limit access to cardholder data and system components according to business need-to-know.

8. Control and monitor user access to system components by assigning unique IDs.

9. Restrict any physical access to cardholder details.

🔸Regularly monitor and test networks

10. Track and monitor all access to network resources and cardholder data.

11. Regularly test security systems and processes.

🔸Maintain an information security policy

12. Support information security by establishing organisational security policies and programs for employees and contractors.

What happens in the event of PCI DSS non-compliance?

Non-compliance with PCI DSS can have severe consequences for merchants and businesses who handle credit card transactions. These include hefty fines from payment card brands, increased liability for data breaches, damage to brand reputation, and loss of customer trust.

Non-compliance can also lead to the suspension of payment processing services, greatly impacting your ability to generate revenue, especially if you primarily rely on card payments.

Overcoming the complexities of PCI DSS compliance

Navigating PCI DSS compliance is often complex. The strict security standards and ongoing monitoring requirements can be resource-intensive and time-consuming. By understanding the core principles, building a culture of compliance, and using the right tools, you can reduce the costs and challenges of achieving PCI DSS compliance. Partnering with a PCI DSS certified payment processor like Airwallex, is another way to make the process easier.

How Airwallex can simplify PCI DSS compliance

Airwallex, as a Level 1 PCI DSS-certified payments provider, helps simplify the complexities around achieving PCI DSS compliance. By partnering with Airwallex for your payments solution, you can leverage our robust security infrastructure and experienced team.

With Airwallex you can:

• Safeguard your customers' data both in transit and at rest, with state-of-the-art encryption technologies.

• Ensure that your customers' personal and financial details remain confidential and secure with tokenization.

• Provide real-time protection against fraudulent activity, ensuring a seamless and secure experience for your customers.

• Our team of security experts is dedicated to ensuring the highest level of security for your business.

*Source: https://www.verizon.com/business/resources/reports/2024-dbir-executive-summary.pdf