How to Become PCI DSS Compliant?

With every business going digital, online transactions are no longer an exception but a norm. This shift has brought the security of cardholder data into sharp focus, making the compliance for Payment Card Industry Data Security Standards (PCI DSS) a necessity. 

Whether you're a small online retailer or a large corporation, this guide provides a structured approach to becoming PCI DSS compliant. With our practical checklist in hand, you'll take on each requirement, ensuring your business is secured against any kind of breaches. Let’s begin.

What is PCI Compliance?

PCI Compliance, or Payment Card Industry Compliance, is a group of security standards designed to ensure that businesses handle cardholder data securely. These standards are designated by the Payment Card Industry Security Standards Council (PCI SSC), which was created in 2006 by major credit card companies like Visa, Mastercard, and American Express.

The primary goal of PCI compliance is to protect sensitive information during payment transactions and to prevent data breaches and fraud. Businesses that take, process, or store credit card information are required to comply with these standards, regardless of their size or transaction volume. 

Failure to achieve compliance can result in severe penalties, including fines & the potential loss of the ability to process credit card payments.

3 Pillars of the PCI Security Standards

The PCI Security Standards are built upon three fundamental pillars:

• Security: Implementing robust security measures to protect cardholder data.
• Integrity: Ensuring that all systems and processes involved in payment processing maintain the integrity of cardholder data.
• Compliance: Adhering to the established standards and regularly validating compliance through assessments and audits.

Does My Business Need to Be PCI Compliant?

Yes, any business that accepts credit card payments must be PCI compliant. This includes businesses of all sizes, from small retailers to large corporations. The specific requirements for compliance may vary based on the volume of transactions processed annually, which categorizes businesses into four levels:

• Level 1: More than 6 M transactions per year.
• Level 2: 1 M to 6 M transactions per year.
• Level 3: 20,000 to 1 M transactions per year.
• Level 4: Fewer than 20,000 transactions/year.

What Are PCI Requirements?

The PCI DSS (Payment Card Industry Data Security Standard) outlines 12 key requirements that organizations must implement to ensure compliance. These requirements include:

1. Install and maintain a firewall.
2. Do not use vendor-supplied defaults for system passwords and security settings.
3. Protect stored cardholder data.
4. Encrypt transmission of cardholder information across open networks.
5. Use and regularly update anti-virus software.
6. Develop and maintain protected systems & applications.
7. Limit access to cardholder information on a need-to-know framework.
8. Allocate a unique ID to each person who has computer access.
9. Limit physical access to cardholder data.
10. Track and monitor all access to network components & cardholder data.
11. Regularly test security systems and processes.
12. Maintain a policy that addresses information security.

The 12 key PCI DSS Security Requirements

The Payment Card Industry Data Security Standard (PCI DSS) establishes a set of 12 key PCI DSS checklist that are crucial for any business handling cardholder data.

1. Installing and maintaining firewalls: Firewalls serve as a fundamental barrier, controlling the incoming and outgoing network traffic based on predetermined security rules.
2. Changing vendor-supplied default passwords: Default passwords and security settings provided by vendors are often common knowledge and can be easily exploited.
3. Protecting stored cardholder data: It's crucial to safeguard stored cardholder data using encryption, truncation, redaction, or other effective methods. This step ensures that sensitive data is secure even if a system breach occurs.
4. Encrypting data across open networks: When transmitting cardholder data over open, public networks, encryption protects the data from interception and unauthorized access.
5. Regularly updating antivirus software: Deploying and updating antivirus regularly on all systems protects against malware and other cyber threats that could compromise cardholder data.
6. Developing secure systems and processes: This involves creating and maintaining secure applications and network systems, including regular updates and patches to address known vulnerabilities.
7. Restricting access to data on a need-to-know basis: Limiting the access to cardholder data to those employees whose jobs require it allows for minimimal data exposure.
8. Assigning unique user IDs: Every individual with computer access should have a unique ID to ensure that actions on critical data and systems can be accurately traced.
9. Restricting physical access to cardholder data: Implement physical access controls to protect systems and environments where cardholder data is stored. This includes using surveillance cameras, access control mechanisms, and visitor logs.
10. Tracking and monitoring network access and data: These mechanisms are necessary for detecting and responding to anomalies in network and data usage, including maintaining audit trails and using automated monitoring tools.
11. Regularly testing systems and processes: Regular testing of security systems and processes ensure the effectiveness to identify any vulnerabilities. This includes conducting penetration tests and vulnerability scans.
12. Maintaining a robust information security policy: Regularly reviewing the information security policy sets the foundation for security practices within an organization. It should be communicated to all employees, ensuring that everyone understands their role for being PCI DSS compliant.

The Roadmap to Become PCI Compliant

The journey of how to become PCI compliant requires more than checking checklists. Here are the steps that businesses need to take.

• Step 1: Meet the requirements set by the PCI security standards council
• Step 2: Conduct detailed assessment of business systems and practices
• Step 3: Perform network scans
• Step 4: Identifying the compliance levels

Step 1: Meet the requirements set by the PCI security standards council

The initial step in PCI DSS compliance involves the understanding of the requirements established by the PCI Security Standards Council. These 12 requirements encompass a range of security measures and protocols designed to safeguard cardholder data.

Step 2: Conduct detailed assessment of business systems and practices

A crucial part of becoming PCI DSS compliant is ensuring that security measures are effectively integrated within a business's systems and practices. This involves an assessment of the current security posture of your business, identifying areas where cardholder data is processed, stored, and transmitted, and evaluating the effectiveness of existing security controls.

Step 3: Perform network scans

Network scans are conducted to detect vulnerabilities in your network, including unsecured ports, outdated software, misconfigured firewalls, and other potential security weaknesses. These scans help in identifying areas that require strengthening to protect against cyber attacks.

Step 4: Identifying the compliance levels

Businesses fall into different levels of compliance based on the volume of transactions they process. These levels determine the specific requirements and assessment procedures that a business must follow.

• Level 1: Businesses that process more than 6 million transactions annually are categorized as Level 1. This level demands the most rigorous compliance measures, including an annual Report on Compliance (ROC) conducted by a Qualified Security Assessor (QSA) or an internal auditor, and a quarterly network scan by an Approved Scan Vendor (ASV).
• Level 2: For businesses processing between 1 and 6 million transactions annually, Level 2 compliance applies.
• Level 3: Level 3 targets businesses that handle 20,000 to 1 million e-commerce transactions per year. 
• Level 4: This level is for businesses processing fewer than 20,000 e-commerce transactions or up to 1 million total transactions annually.

A business that suffers a breach may be escalated to a higher compliance level by the card networks.

The Ecosystem of PCI Compliance

Understanding the roles and responsibilities of each group within the PCI DSS ecosystem is crucial to become PCI DSS compliant.

• Card networks: Card networks such as Visa, Mastercard, American Express, and others are fundamental to the PCI compliance landscape. Each network may have its own set of specific compliance requirements and guidelines that align with the overarching standards set by the PCI Security Standards Council. 
• The PCI Security Standards Council: The PCI SSC is the governing body that develops, enhances, and promotes the PCI DSS. The council provides the framework for developing a payment card data security process, including prevention, detection, and appropriate reaction to security incidents.
• Merchant account providers and payment service providers: These providers function as intermediaries between businesses and card networks. They not only facilitate the ability of businesses to accept card payments but also act as administrators of PCI compliance.
• Business owners: It is the responsibility of business owners to ensure that their business meets the PCI DSS requirements set forth by the card networks and the PCI SSC. This involves implementing the necessary security measures, conducting regular assessments and audits, and maintaining an ongoing commitment to protecting cardholder data.

PCI Security Compliance Checklist

A comprehensive PCI Security Compliance Checklist includes:

• Implementing firewalls and secure network configurations.
• Changing default passwords on devices and applications.
• Protecting stored cardholder data through encryption or truncation.
• Regularly updating anti-virus software and security systems.
• Conducting regular vulnerability scans and penetration testing.
• Training staff on security policies and procedures.

Regular self-assessments or third-party audits should also be conducted to ensure ongoing compliance.

How to redact credit card data and comply with PCI DSS?

PCI DSS Certification vs. Compliance: What’s the Difference?

The terms "PCI DSS Certification" and "PCI Compliance" are often used interchangeably but refer to different concepts:

• PCI Compliance: Indicates that a business has implemented the minimum necessary measures as outlined in the PCI DSS requirements. Compliance can often be validated through self-assessment questionnaires or external scans.
• PCI Certification: Represents a higher level of validation where an organization undergoes a thorough assessment by an approved PCI assessor. Achieving certification demonstrates that a business has fully implemented all required security measures.

Benefits of PCI DSS Compliance

Achieving PCI DSS compliance offers several benefits:

• Prevent Data Breaches: By adhering to security standards, businesses significantly reduce their risk of experiencing data breaches.
• Build Customer Trust: Demonstrating commitment to data security fosters trust among customers who value the protection of their sensitive information.
• Avoid Fines and Penalties: Non-compliance can lead to hefty fines imposed by acquiring banks, which can accumulate monthly until compliance is achieved.
• Meet Global Data Protection Standards: Many aspects of PCI DSS overlap with other regulations (like GDPR), helping organizations meet broader compliance requirements.

In summary, PCI compliance is essential for any business handling payment card information, ensuring both customer protection and organizational integrity in financial transactions.

Practical Tips for Achieving PCI DSS Compliance

Here are some essential tips that can guide businesses to achieve PCI DSS compliance:

1. Practicing good data hygiene

The foundation of data security starts with good data hygiene practices. You should know exactly what data you have, where it is stored, and how it is used. Regularly review and clean your data storage to ensure that only necessary cardholder data is retained.

2. Keeping software updated

Ensure that all systems, including point-of-sale (POS) systems, payment gateways, and other software that interact with cardholder data, are regularly updated with the latest security patches and updates.

3. Storing only essential data

Limit the storage of cardholder data to what is absolutely necessary for business operations. It's crucial to mask credit card number details and avoid storing sensitive data elements like full magnetic stripe data, CVV2 numbers, or PIN data, as storing these can increase compliance requirements and security risks.

4. Educating employees on data protection

Regular training and education of employees on the importance of data security, recognizing phishing attempts, and proper handling of cardholder data are vital. Create a culture of security awareness within the organization to protect against data breaches.

5. Using validated payment software and card readers

Ensure that all payment software and hardware used in your business are validated for PCI DSS compliance. Using validated payment solutions helps in safeguarding transaction data right from the point of entry, reducing the risk of data compromise.

How does Strac help you stay PCI DSS compliant?

Strac is a SaaS and endpoint DLP solution that helps businesses stay PCI DSS compliant with its modern features:

• Continuous monitoring and instant alerts: Real-time monitoring and instant alerting of any unauthorized activities or data movements keep businesses ahead in their security efforts.
• High accuracy in data detection: Strac employs sophisticated machine learning models to achieve high accuracy in identifying sensitive data.
• Proactive data scanning: Strac actively scans for sensitive information, ensuring thorough protection and management of critical data. This proactive scanning is key to identifying and safeguarding essential data elements.
• Intelligent data redaction: The advanced redaction capabilities are a standout feature for redacting sensitive details in shared documents for preventing unintended data exposure.
• Securing data in transit: Ensuring the safety of data during transmission, Strac encrypts information moving across various networks. This encryption is vital for protecting data against potential interceptions.
• Granular access control: The platform allows for detailed access management, ensuring that only authorized individuals can access sensitive information. This level of control is essential for minimizing the risk of data breaches.
• Integration with multiple platforms: The solution's compatibility with various platforms, including SaaS, Cloud, and endpoint environments such as Zendesk, Slack, and Office 365, ensures coverage and protection across all business operations.

Book a free 30-min meet to learn more about securing transactions and customer data.