In today’s digital world, secure payment processing is essential for every business that handles credit card data. Payment Card Industry (PCI) compliance refers to adhering to a set of security standards established by the PCI Security Standards Council to protect cardholder information. While achieving PCI compliance isn’t legally required throughout the US, many merchant services providers and card networks consider it mandatory.
Why PCI compliance matters
Data breaches have become more of a “when than if”—our partner Arctic Wolf reported that 48% of organizations they surveyed identified evidence of a successful breach within the last 12 months. PCI compliance is crucial not only for minimizing the risk of data breaches and fraud but also as a key factor in maintaining trust and credibility.
What it means to be PCI compliant
PCI compliance is not a one-time task; it requires annual maintenance. Requirements differ based on the size of the business and the volume of card transactions. Businesses are divided into four levels, with each card network having slightly different criteria. The type of payment service used also influences the effort required to uphold compliance each year.
Risks of noncompliance
In the event of a data breach, noncompliant companies face increased scrutiny, potentially disrupting operations and leading to long-term financial damage. Failing to comply with PCI standards can expose businesses to significant risks:
- Financial Penalties: Noncompliance can result in hefty fines from credit card networks.
- Legal Repercussions: Businesses may face lawsuits and other legal actions if a data breach occurs due to noncompliance.
- Loss of Customer Trust: Customers are less likely to trust an organization that cannot protect their sensitive information, leading to potential loss of business and damage to the brand’s reputation.
- Challenges with Cyber Insurance: Many cyber insurance providers require PCI compliance as part of their coverage criteria. Noncompliance could result in higher premiums or even denial of coverage, leaving businesses financially vulnerable in the event of a cyber incident.
In an era where data security is paramount, PCI compliance isn’t just a requirement—it’s a strategic advantage. Contact Pacxa to learn more about Credit Card PCI compliance assessment and how to ensure the greatest levels of security for your business.