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What is PCI DSS? Why is it Important for Companies?

What is PCI DSS? Why is it Important for Companies?

PCI DSS is a set of international standards and technologies developed to protect the data of users making card payments.

#Payment-Security

4 min read

Last Updated: Eki 7, 2024

Table of contents

The History of PCI DSS

PCI DSS Compliance

Requirements for PCI DSS Certification

PCI DSS Levels

Why Do Companies Obtain PCI DSS Certification?

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PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards developed by five payment card companies, aimed at safeguarding payment card information.

Whether in physical stores or online, the security of card information in all transactions is crucial. For a secure payment experience, PCI DSS sets the rules and standards for processing, storing, and transmitting card data. Banks, financial institutions, and companies worldwide adhere to these standards to ensure a safer payment infrastructure.

The History of PCI DSS

The first credit card was introduced by American Express in the 1950s, and this was when issues regarding payment security first began to surface. In the 1970s, magnetic stripe technology was developed to protect cardholder information. By the late 1990s, with the rise of the internet, online payments became popular. However, the increase in card usage also brought about new security risks. To improve security, payment service companies developed their own programs. The major payment service providers at that time had the following programs:

Visa: Cardholder Information Security ProgramMastercard: Site Data Protection ProgramAmerican Express: Data Security Operating PolicyDiscover: Information Security and Compliance ProgramJCB: Data Security Program

In 2004, these five companies came together to form the PCI Security Standards Council (PCI SSC). This council established international standards for the secure processing, storage, and transmission of payment card information. Known as PCI DSS, these standards, which are continuously updated based on technological advancements, have gained global recognition.

PCI DSS Compliance

PCI DSS consists of over 300 security controls. More than 1,800 pages of official documentation related to PCI DSS have been published by the PCI Council. It would take approximately 72 hours just to read through all the necessary documents to complete PCI DSS compliance.

PCI DSS covers a wide range of security measures, including creating a secure network infrastructure, protecting credit card data, restricting access to card data, monitoring systems regularly, conducting security tests, and establishing security policies that employees are trained on. Setting up a PCI DSS-compliant system helps reduce fraud, protects the reputation of businesses, and ensures compliance with legal requirements.

Requirements for PCI DSS Certification

To achieve PCI DSS compliance, businesses must meet 12 primary requirements and over 300 sub-requirements. The main requirements are as follows:

Establish and maintain network security controls.
Apply secure configurations to all system components.
Protect stored cardholder data.
Protect cardholder data during transmission using strong encryption.
Protect all systems and networks from malicious software.
Develop and maintain secure systems and software.
Restrict access to system components and cardholder data based on business needs.
Identify users and control access to system components using authentication.
Restrict physical access to cardholder data.
Monitor and log all access to system components and cardholder data.
Regularly test the security of systems and networks.
Support information security with organizational policies and procedures.

PCI DSS Levels

Different certification levels exist for companies seeking PCI DSS compliance. The requirements and controls vary depending on the certification level. The PCI DSS levels are as follows:

Level 1: Companies processing 6 million or more transactions annually.Level 2: Companies processing between 1 million and 6 million transactions annually.Level 3: Companies processing between 20,000 and 1 million transactions annually.Level 4: Companies processing fewer than 20,000 transactions annually.

Why Do Companies Obtain PCI DSS Certification?

For companies that process, store, or transmit payment card data, having PCI DSS certification is crucial. Banks, financial institutions, e-commerce platforms, electronic money and payment institutions, hotels, restaurants, and telecommunications companies must comply with PCI DSS to ensure a secure customer experience. The benefits of obtaining PCI DSS certification for a company can be summarized as follows:

Legal Compliance

In many countries, businesses that handle payment card data are required to comply with PCI DSS. Non-compliance can result in legal penalties.

Increased Security

PCI DSS outlines security measures and protocols to ensure the secure storage, processing, and transmission of payment card data. Complying with these standards helps protect businesses from security threats such as data breaches and fraud.

Customer Trust

Customers can feel confident knowing that their payment information is secure. PCI DSS certification shows that a company provides a secure infrastructure.

Prevention of Financial Losses

Data breaches can cause significant financial losses for businesses. PCI DSS compliance helps prevent such breaches, reducing potential damage.

Protecting Brand Reputation

A data breach can damage a company’s reputation and lead to customer loss. PCI DSS certification demonstrates a company’s commitment to data security and strengthens its brand image.

Sources: 1, 2

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