The Payment Card Industry Data Security Standard (PCI DSS) sets rules that organizations must follow to ensure the safety and security of the credit or debit card information they handle. Organizations achieve PCI DSS compliance by adhering to these rules.

This blog will explore the PCI DSS, covering its major principles, levels, compliance requirements, compliance checklist, and the benefits and challenges of PCI DSS compliance.

Let’s Start!

What is PCI DSS?

PCI DSS serves as the worldwide security standard for entities that store, process, or transmit cardholder data and/or sensitive authentication data. This standard establishes a fundamental level of protection for consumers and helps minimize fraud and data breaches within the payment industry. It applies to any organization that accepts or processes payment cards.

Six Major Principles of PCI DSS

The PCI DSS builds upon six foundational principles that guide organizations in creating a secure environment for handling cardholder data:

1. Secure Network and Systems: Install and maintain a secure network infrastructure. Implement firewalls and change default vendor-provided passwords and settings to protect against unauthorized access. Audit and update network security protocols regularly to address emerging threats.

2. Protect Cardholder Data: Safeguard cardholder data during storage and transmission. Implement encryption and other security measures to prevent unauthorized access to sensitive information. Minimize data storage to reduce exposure risks.

3. Vulnerability Management Program: Establish a program to identify and mitigate system vulnerabilities. Update and patch software regularly to protect against known threats. Conduct periodic vulnerability assessments and penetration testing to identify potential weaknesses proactively.

4. Access Control Measures: Organizations must limit access to cardholder data based on the "need to know" principle. They should allow only authorized personnel to access sensitive information, uniquely identify and log all access, and implement multi-factor authentication for accessing sensitive areas of the network.

5. Monitor and Test Networks: Organizations should continuously monitor and test networks to ensure effective and up-to-date security measures. They must conduct vulnerability scans and penetration testing to identify potential weaknesses. Organizations should implement intrusion detection and prevention systems to detect and respond to potential security threats in real-time.

6. Information Security Policy: Develop and maintain a comprehensive information security policy that outlines procedures and responsibilities for protecting cardholder data. Communicate this policy to all employees to ensure compliance and awareness of security practices.

PCI DSS Levels

PCI DSS categorizes compliance into different levels based on the volume of card transactions an organization processes. Here are the four PCI DSS levels for merchants:

1. Level 1:

   • Organizations process over 6 million card transactions annually.

   • A Qualified Security Assessor (QSA) conducts an annual Report on Compliance (RoC).

   • An Approved Scanning Vendor (ASV) performs quarterly network scans and annual penetration testing.

2. Level 2:

   • Organizations process 1 million to 6 million card transactions annually.

   • They complete an annual Self-Assessment Questionnaire (SAQ).

   • An ASV conducts quarterly network scans.

3. Level 3:

   • Organizations process 20,000 to 1 million card transactions annually.

   • They complete an annual SAQ and may submit quarterly network scans.

4. Level 4:

   • Organizations process fewer than 20,000 card transactions annually.

   • They complete an annual SAQ and may conduct quarterly network scans.

12 PCI DSS Compliance Requirements

Organizations must follow essential PCI DSS Compliance Requirements to protect payment card data and ensure secure transactions. These include:

1. Usage and Maintenance of Firewalls

The first PCI DSS requirement mandates the use and maintenance of all firewalls. Organizations must use firewalls to monitor incoming and outgoing traffic on their networks. These firewalls create a secure barrier that protects the organization's internal network from potentially dangerous external networks, thereby safeguarding card data.

2. Protection of Cardholder Information

Organizations must minimize cardholder information storage to reduce risk. They should securely dispose of sensitive data when no longer needed, such as when clients discontinue services. Reducing data retention lowers the potential impact of a data breach.

Organizations must implement stringent access controls to safeguard against vulnerabilities like SQL injection or cross-site scripting (XSS) attacks. These controls should include role-based access, encryption, and regular security audits to ensure that only authorized personnel can access sensitive information.

3. Secure Passwords

Organizations must enforce strong password policies to protect sensitive data. They should require complex passwords with a mix of symbols, numbers, uppercase and lowercase letters. Implementing a regular password refresh cycle reduces the risk of long-term exposure.

Organizations should add multifactor authentication (MFA) for an extra layer of security, requiring additional verification steps like one-time codes or biometric scans.

4. Encrypted Transmissions

Organizations must use robust encryption methods when transmitting cardholder data, especially over open networks where interception risk is highest. Encryption keeps data unreadable to unauthorized parties even if intercepted.

Organizations should implement secure protocols like Transport Layer Security (TLS) to encrypt data during transit, safeguarding against eavesdropping and tampering. They must regularly update their encryption protocols and configurations to protect against emerging threats and vulnerabilities.

5. Antivirus and Anti-Malware

Organizations must deploy robust antivirus and anti-malware software to protect against cyber threats that could disrupt operations or compromise data integrity. They should regularly update these tools to detect and respond to the latest threats.

Organizations must conduct regular security scans and implement real-time monitoring to identify and mitigate potential threats before they cause harm.

6. Software Maintenance

Organizations must regularly update software and promptly apply security patches to maintain a secure IT environment. They should stay vigilant in applying the latest security updates to prevent attackers from exploiting known vulnerabilities.

This includes updating operating systems, applications, and third-party software. Organizations can use automated patch management tools to ensure they don't miss critical updates, and conduct regular audits to verify all systems are up-to-date.

7. Data Governance

Organizations must establish effective data governance to protect cardholder information. They should implement strict protocols for data access, ensuring only those with a legitimate need can view sensitive information.

This involves implementing monitoring access attempts and regularly reviewing access permissions. By limiting access to cardholder data and continuously monitoring access points, organizations can significantly reduce the risk of data exposure and ensure compliance with data protection regulations.

8. Dedicated, Unique IDs

Organizations must assign unique identifiers to each individual with access to cardholder data. These unique IDs allow organizations to track and monitor access requests, providing greater visibility into who accesses data and why.

By maintaining detailed logs of access attempts, organizations can quickly identify suspicious activity and take appropriate action. This level of accountability also helps in conducting forensic investigations in the event of a data breach, allowing for a more effective response.

9. Physical Access

Organizations should secure server rooms, data centers, and other critical infrastructure with access controls such as biometric scanners, keycards, and surveillance cameras. Organizations must conduct regular audits of physical security measures to ensure compliance and identify potential vulnerabilities. By restricting and monitoring physical access, organizations can better protect sensitive data from theft or tampering.

10. Access Logs

Organizations must maintain comprehensive access logs to monitor and secure network resources and cardholder information. These logs should record all access attempts, including successful and unsuccessful ones, to provide a detailed record of who accessed what data and when.

Organizations should regularly review access logs to detect patterns of suspicious activity and respond promptly to potential security incidents. Access logs also provide invaluable evidence for auditing purposes, demonstrating compliance with security policies and regulatory requirements.

11. Regular Testing

Organizations must regularly test their security systems and network infrastructure to identify vulnerabilities before attackers can exploit them. This proactive approach should include penetration testing, vulnerability assessments, and automated scanning tools to uncover potential weaknesses.

Regular testing helps maintain a strong security posture and ensures security measures function as intended. By identifying and addressing issues early, organizations can prevent costly breaches and maintain compliance with industry standards.

12. Documentation of Policies

Organizations must clearly and comprehensively document security policies, procedures, and protocols to achieve and maintain PCI DSS compliance. These documents should outline the organization's approach to securing cardholder data, including roles and responsibilities, incident response plans, and employee training programs. Organizations should regularly update these documents to reflect changes in the threat landscape and regulatory requirements.

PCI DSS Compliance Checklist

To achieve PCI DSS data compliance, organizations should follow these three key steps:

Step 1: Assessment

In the first step towards PCI DSS compliance, the organization should:

• Identify and inventory the cardholder data.

• Take stock of all IT assets the company uses for payment processing.

• Analyze these assets to identify vulnerabilities.

This step also involves checking all connected systems for vulnerabilities, enabling the organization to eliminate any indirect breaches.

Step 2: Remediation

The organizations must address all risks and vulnerabilities identified in the first step during the second phase of compliance. Larger organizations may find this process complex and time-consuming. Organizations can streamline this process by assigning risk levels to each identified vulnerability. They should address the highest-risk vulnerabilities first, as these pose the greatest threat to cardholder data.

Step 3: Reporting

Organizations must create a detailed report of their findings in the final phase and submit it to the acquiring bank or all major credit card brands for compliance certification. Report formats vary depending on the organization's size. Small organizations must submit a self-assessment questionnaire, while larger organizations undergo an onsite audit.

Benefits and Challenges of PCI DSS

PCI DSS Benefits

Achieving PCI DSS compliance offers a multitude of benefits for organizations, primarily in terms of safeguarding sensitive data and bolstering their reputation as security-conscious organizations. The key benefits include:

• Enhanced Customer Trust: Compliance with PCI DSS ensures the robust protection of cardholder data, which helps organizations establish and sustain trust with their customers. This trust can translate into repeat business, higher customer retention rates, and a stronger brand reputation, ultimately fostering long-term loyalty.

• Reduced Risk of Data Breaches: PCI DSS mandates stringent security controls and data protection measures that significantly reduce the likelihood of data breaches. By minimizing the risk of unauthorized access to sensitive information, organizations can avoid the costly consequences of breaches, including financial penalties, legal liabilities, and damage to their reputation.

• Fraud Prevention and Detection: PCI DSS requirements are designed to both prevent and detect fraudulent activities. By adhering to these standards, organizations can mitigate the risk of financial losses associated with fraud, ensuring a safer environment for both themselves and their customers.

• Compliance with Industry Standards: Demonstrating compliance with PCI DSS reflects the organization’s commitment to adhering to industry best practices. This not only strengthens relationships with partners, stakeholders, and regulators but also enhances the organization’s overall credibility in the marketplace.

PCI DSS Challenges

While the benefits of PCI DSS compliance are substantial, the process of achieving and maintaining compliance presents several challenges for organizations. These challenges include:

• Complexity: PCI DSS encompasses a wide range of security controls that can be challenging to interpret and implement, particularly for small and medium-sized organizations with limited technical expertise and resources. Navigating the complexity of these requirements often requires specialized knowledge and a significant investment in time and effort.

• Cost: Implementing and maintaining PCI DSS-compliant security systems, processes, and personnel can be financially burdensome, especially for smaller organizations. Technology upgrades, employee training, and regular assessments can strain budgets, making compliance a significant financial commitment.

• Ongoing Effort: PCI DSS compliance is not a one-time achievement but an ongoing process that requires continuous monitoring, testing, and updating of security measures. Organizations must dedicate resources to regularly assess their compliance status and address any emerging vulnerabilities, ensuring that they remain compliant over time.

• Adapting to a Changing Environment: The payment card industry and cybersecurity environment are constantly evolving, with new threats and updated compliance requirements emerging regularly. Keeping up with these changes can be demanding for organizations, requiring them to stay informed and adapt their security practices to meet the latest standards.

Final Thoughts

Organizations handling cardholder data face the critical yet challenging task of achieving and maintaining PCI DSS compliance. The complexity of securing sensitive information and adapting to a constantly evolving threat landscape necessitates advanced security tools.

Modern API security platforms can streamline this process by offering continuous monitoring, real-time vulnerability detection, and robust protection against emerging threats. These tools not only help organizations meet PCI DSS requirements but also enhance overall data security, reduce breach risks, and build lasting customer trust.

Akto offers a comprehensive range of API security services to help organizations achieve PCI DSS compliance. Our team has designed our extensive suite of features to specifically address the unique needs and challenges associated with handling sensitive cardholder information.

Schedule a demo with us today!