Compliance with the PCI – understanding its significance
Most businesses on the date collect and store the credit and debit card details of their customers. There are a variety of risks that are associated with the collection and storage of such sensitive information. Risks of credit card frauds, data breach, and fines are common for businesses that do not actively safeguard their data. The Payment Card Industry (PCI) has stated the necessity for all retailers accepting card payments to comply with its regulations. However, in case the transaction volume is not too high, the compliance terms and conditions can vary.
In general, there are some basic guidelines set by the PCI that all retailers must follow. When the retailers meet the requirements of the PCI, they are said to be compliant. For this purpose, the PCI requires the merchant to actively use a firewall for protecting sensitive customer information, especially the financial details. In addition, the retailer must use antivirus software during the various transactional activities or while collecting and storing the credit card details. The data collected (such as card number, CVV details, et cetera) must be stored in a protected environment with limited access of the employees to the cardholder details. This includes both physical access to the details as well as access through the computer systems. The PCI states that all merchants have designed and implement an effective IS policy to ensure the safety and security of the vital business data (Le Grand & Sarel, 2008).
Why is compliance important?
The count of cybercrimes is on the rise. On the date, a lot of hackers target the retailers for their missions in light of the fact that the merchants often lack enough security to safeguard their systems storing the various card related information. A data breach not only puts the safety and security of the customers at risk but also puts the reputation of the retailer at stake (MacCarthy, 2011). Many retailers also offer card-less transactions for the customers purchasing through their online portals. Thus it can be tough to monitor the user identities for such transactions. It is possible for any individual to log in to the services and misuse it. Such reasons make it increasingly compulsory for retailers to comply with the PCI.
Consequences of non-compliance with the PCI
The PCI can be regarded as the regulatory foundation in the sector. All organizations are bound to comply with it if they want to avoid a fine or license cancellation in extreme cases. Any retailer wanting to run their processes, in the long run, must update its compliance with the PCI. In case it is not regular, the costs associated with the process can be much higher than what it would have been if the retailer was regular in updating its compliance (Navetta, 2008). The risks of a data breach, hacking activities, and credit card fraud cannot be ruled out either. These risks can take a huge toll on the retailer. However, it is possible to avoid all such unwanted happening if the retailer follows the guidelines set by the PCI and abide by the criteria to comply with it.
Reference
Le Grand, C., & Sarel, D. (2008). Database access, security, and auditing for PCI compliance. EDPAC: The EDP Audit, Control, and Security Newsletter, 37(4-5), 6-32.
MacCarthy, M. (2011). Information security policy in the US retail payments industry. Stan. Tech. L. Rev., 3.
Navetta, D. (2008). The Legal Implications, Risks, and Problems of the PCI Data Security Standard. Scitech Lawyer, 5(1), 4.