PCI DSS Compliance: A Guide
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Overview
PCI DSS is a security framework designed to prevent payment card fraud by requiring all merchants that process payment cards to protect cardholders’ sensitive personal information. Read on to learn what PCI DSS is, who it’s for, and how to comply with the payment processing guidelines to avoid potential fines and other penalties.
What is PCI DSS?
The Payment Card Industry Data Security Standard (PCI DSS) is a set of payment security protocols provided by the Payment Card Industry Security Standards Council (PCI SSC), a consortium of payment providers that includes MasterCard, Visa, American Express, Discover Financial Services, and JCB International.
Originally launched in 2004, the latest iteration of the framework — PCI DSS 4.0 — defines a global standard that offers a baseline of operational and technical requirements businesses must comply with to protect sensitive payment data. Failure to achieve PCI compliance can result in fines and penalties, including potentially losing the ability to process credit card payments altogether.
PCI DSS remains the primary method for protecting payment card transaction data from fraud and theft. Almost two decades after the initial introduction of PCI DSS, fraud continues to ravage global markets. This is largely the result of the rise in e-commerce and the massive profitability of cyber crime. Worldwide fraud losses increased by 14% in 2021, and the global payment card industry is on pace to lose nearly $400 billion over the next decade due to fraudulent activity.
As payment card fraud continues to accelerate, businesses must remain vigilant about safeguarding sensitive consumer information. According to a recent McKinsey study, more than 10% of credit and debit card users experienced fraud over a 12-month period.
Who needs to comply with PCI DSS?
PCI compliance is mandatory for any business that accepts, processes, or transmits credit card or debit card payments. The standard applies to all organizations regardless of size, annual revenue, industry, or location.