Customers immediately lose trust in financial institutions or merchants and moreover, their personal credit can be negatively affected. And that results into loss of credibility of these merchants and financial institutions. All parties involved are affected by the breach or theft of cardholders’ data.
As per the Nilson 2015 report, fraud losses incurred by banks and merchants on all credit, debit, and prepaid general purpose and private label payment cards issued worldwide reached $16.31 billion in 2014 when global card volume totalled $28.844 trillion. This means that for every $100 in volume, 5.65¢ was fraudulent.
In order to protect merchants, financial institutions and their customers, a higher order of security is essential. Because of the enormity of cybercrime threat, the major credit card companies (MasterCard, VISA, Amex, JCB and Discover) jointly established Payment Card Industry Security Standard Council (PCI SSC) in the year 2006 with the goal of improving payment security. The body developed Payment Card Industry Data Security Standard (PCI DSS) that helps protects safety of card data at multiple locations from Point-Of-Sale to the processing center.
PCI DSS certification is a comprehensive best practice standard for managing any business that comes into contact with credit card information. The standard mandates measures to protect data from both internal and external threats. It is the responsibility of the payment brands, the payment service providers and acquiring banks to enforce PCI DSS compliance and not the PCI SSC.
PCI DSS certification verifies:
- Encrypting transmission of cardholder data
- Management of file integrity
- Intrusion detection
- Physical security of offices and data centers
- Regularly testing security systems and processes
- Strong cryptography and security protocols
- Vendor agreements
- Through staff capacity building
Complying with the PCI DSS is crucial for security of your customers and, thus, the success of your business. So, don’t be afraid of it – embrace it with open arms, just like you do with other aspects of your business. Now that you have the answers to these most common questions, you are prepared to take the next steps towards PCI DSS compliance for your company.
Checkout this article – PCI DSS 3.2 What’s New to look at what is new in this version of the standard.
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