PCI DSS: Everything you need to know about PCI DSS to stay compliant

PCI DSS is a set of security standards created by the Payment Card Industry Security Standards Council (PCI SSC) in 2004. The PCI SSC consists of the major credit card companies (Visa, Mastercard, American Express, Discover, and JCB).

The PCI DSS consists of 12 technical and operational requirements that the PCI SSC created to protect cardholder data and sensitive account data during payment transactions and reduce the risk of data breaches and fraud. It also includes other benefits, such as: 

• Build and maintain a secure network and system

• Protect account data

• Maintain a vulnerability management program

• Implement strong access control measures

• Regularly monitor and test networks

• Maintain an information security policy

There are other security standards related to protecting cardholder data, but PCI DSS is the primary and mandatory standard for merchants handling credit and debit card transactions.

The PCI DSS requirements apply to:

• Companies that process credit or debit card transactions. 

• Companies that collect, store, or transmit cardholder data or sensitive authentication data. 

Cardholder data refers to information that includes the full primary account number (PAN) plus the cardholder's name, expiration date, and service code. Sensitive authentication data is security-related information used to authenticate cardholders and authorize payment card transactions. 

This means all entities involved in payment card processing, i.e. merchants, processors, acquirers, issuers, and service providers, must comply with PCI DSS.

Meeting PCI DSS compliance requirements involves adhering to comprehensive security standards designed to protect cardholder data and ensure safe transactions. 

Following is a PCI DSS compliance principles outlined in 12 requirements that every organization must follow:

1. Install and maintain a firewall configuration to protect cardholder data 

2. Do not use vendor-supplied defaults for system passwords and other security parameters 

3. Protect stored cardholder data 

4. Encrypt transmission of cardholder data across open, public networks 

5. Protect all systems against malware and regularly update antivirus software or programs

6. Develop and maintain secure systems and applications 

7. Restrict access to cardholder data by business need to know 

8. Identify and authenticate access to system components 

9. Restrict physical access to cardholder data 

10. Track and monitor all access to network resources and cardholder data 

11. Regularly test security systems and processes 

12. Maintain a policy that addresses information security for all personnel

To achieve PCI DSS compliance, businesses must follow these requirements and validate their compliance by completing the applicable PCI DSS document every year.

Businesses can either take on the full responsibility to assess and comply with  the PCI DSS requirements themselves or work with a payment provider that reduces the PCI DSS scope for them.

Complying with PCI DSS isn't just about meeting industry requirements but safeguarding your business and building customer trust. Here's how it benefits your organization:

Security 

PCI DSS helps businesses protect cardholder data, reduce fraud, and minimize the chances of a data breach resulting from malicious attacks. 

Costs 

Businesses that don't comply may face significant penalties and fees imposed by card brands. 

Reputation 

PCI DSS is an industry-wide accepted standard which strengthens businesses' reputations and maintains customers' trust. Customers can feel confident that the business is taking responsibility, resulting in increased brand loyalty.

The consequences can be extreme if a company doesn't follow the PCI DSS compliance requirements. Without complying, the risk of a payment data breach significantly increases, leading to costly consequences—from a loss of reputation to expensive penalties. Damage to a business's reputation from not being PCI compliant can lead to losing customers. 

As a business, you must ensure that you meet these predefined PCI compliance standards. Failing to meet PCI compliance can result in fees that range from $5,000 to $500,000, depending on the severity of the violation.

Adyen simplifies PCI DSS compliance by offering secure integrations that minimize your compliance burden while ensuring safe payment processing. Our solutions handle most PCI DSS requirements for you, so your business can focus on growth while minimizing the complexity of managing sensitive cardholder data.

Here’s how Adyen’s key integrations work to reduce your PCI DSS scope:

• Drop-in/components/plugins: These pre-built integrations securely process payment data on Adyen’s servers, eliminating the need for your business to store or handle sensitive cardholder information.

• Pay by Link: Send secure payment links via email or messaging platforms, allowing customers to complete transactions in a secure, Adyen-hosted environment—keeping sensitive data off your systems.

• Hosted checkout: Adyen’s customizable, secure payment page processes and stores all cardholder data on Adyen’s infrastructure, minimizing your PCI DSS obligations.

• In-person payments (IPP): Secure, end-to-end encrypted payment terminals ensure that all cardholder data is processed safely by Adyen, reducing your compliance responsibilities for in-store transactions.

With these integrations, your business can process payments securely without the complexity of handling or storing sensitive cardholder data, significantly reducing your PCI DSS compliance scope.

Comprehensive documentation and ongoing support

In addition to secure integrations, Adyen provides resources to help businesses understand and maintain PCI DSS compliance. Our PCI DSS Compliance Guide outlines key requirements and best practices, keeping you up to date with evolving industry standards and security updates.