Several businesses have been victimized by credit card fraud, which has cost them billions of dollars. After conducting a meticulous survey, 90% of businesses have reported losing up to 9% of their revenue to fraud in 2024.
In addition, these losses are expected to increase in the coming years. By ensuring strict adherence to PCI compliance and security, you can essentially breathe the air of safety and responsible transactions. Being PCI-compliant is one of the key ways to stay protected from data breaches.
But what is PCI compliance and security? And how can you adhere to its protocols effectively? In this blog, we’ll highlight the importance of being PCI compliant and how it saves your brand value.
What Does It Mean to Be PCI Compliant
PCI (Payment Card Industry) is a global organization that shields consumer data effectively. The organization was inaugurated with the collaborative approach of American Express, Discover, JCB, Mastercard, Visa, etc. The founding members have developed and tailored the PCI standards to allow merchant account service providers to protect payment card data.
Staying compliant with methods and protocols set by PCI is mandatory for every business. However, failing to comply with the rules may open doors to the risk of fines, lawsuits, and audits, as well as increase the chances of business being shut down.
Why is Adhering To PCI Compliance And Security Important?
Adhering to PCI rules and regulations is both mandatory and provides additional benefits to your business. Have a look at the benefits below:
Shields Your Business
Ensuring PCI compliance and security safeguards your businesses and ensures flexibility against data breaches, fraud, and other causes of attacks.
Safeguards Your Customers
Maintaining regard to PCI compliance and security for your merchant account management ensures that your customer’s payment information is secured. Maintaining compliance with the regulatory system dramatically mitigates the occurrence of data breaches.
Mitigates The Risk of Fines
Non-compliance with PCI standards makes things easier to be breached; if your business’s data is breached, you may face hefty fines and liabilities. These hefty fines can range from hundreds to thousands of dollars. Moreover, these fines can have a severe impact on your business and help credit card companies close your merchant account.
Keeps Your Brand’s Reputation Secure
In the case of a customer’s data breach, your business is not only liable to pay hefty fines, but you’re on the edge of destroying your company’s reputation. According to an anonymous study, 40% of customers who were defrauded are measured to stop doing business with merchant account services where fraud occurred.
How Can You Maintain PCI Compliance?
These meticulously designed protocols require merchant acquisition to consistently comply with their terms and adhere to the PCI Standards Council’s guidelines. These conscientiously-made guidelines include 78 base requirements and 400+ test procedures, along with 12 key requirements. Including:
Establish and Maintain a Firewall to Safeguard Cardholder Data:
A correctly configured firewall serves as a strong line of defense for protecting sensitive data, making it essential for merchants to maintain a secure firewall configuration.
Enforce Strong Password Practices
Routers, modems, point-of-sale (POS) systems, and third-party device come with a default password and username, which are commonly known and easy to guess. To meet security standards, businesses must replace these factory settings, maintain an inventory of devices and software that require passwords, and regularly update these passwords.
Safeguard Cardholder Data
Protecting cardholder data is critical and requires a dual approach. Merchants must encrypt cardholder information using specific algorithms and perform routine scans to verify that no unencrypted data remains.
Encrypt Data in Transit
Cardholder data must also be encrypted when transmitted over public networks to prevent unauthorized access.
Implement and Update Antivirus Software
Antivirus software is required for all devices that handle primary account numbers (PANs), including workstations, laptops, and mobile devices. This software must be kept up to date to detect and guard against known malware.
Keep Software Updated
To reduce vulnerabilities, merchants must promptly update firewalls, antivirus programs, databases, POS terminals, and other systems, applying security patches as they become available.
Restrict Data Access
Access to cardholder information should be strictly limited to those who need it to perform their duties. Employees, executives, and third parties without a specific need should not have access to this sensitive data.
Conduct Regular Security System Testing
All security systems and processes must be tested frequently to ensure they remain effective and to identify any potential weaknesses. Even cutting-edge security measures can be affected by malfunctions, human error, or vulnerabilities that develop over time. Ongoing testing helps uncover these issues and strengthens overall security.
Conclusion
Staying adhered to PCI compliance and security and strictly following its protocol is one of the secretive ways to excel in your business; by ensuring obedience, you’re essentially keeping your business secure and bolstering customer relationships in the best manner. By following these essential techniques, you can stay compliant with PCI standards and ensure your business’s merchant account stays secure.
