Compliance Is Not Enough: Why your Payments provider must be PCI-Certified

60% of American credit card holders have been the victim of credit card fraud, a staggering statistic that underscores the importance of data security. As cybercriminals become bolder and more sophisticated, companies that handle cardholder data must do everything in their power to protect their customers’ personal information and mitigate the risk of fraud. This is why the PCI Security Standards Council created the Payment Card Industry Data Security Standards (PCI DSS).

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These standards dictate how businesses should securely store, process and transmit sensitive cardholder data, including credit card numbers, social security numbers and any other identifying data. Every business that processes or handles credit card information in any way is obligated to comply with these standards, but not all companies meet the same level of scrutiny. While many companies are PCI-compliant through self-assessments, only those that undergo a formal audit process by qualified professionals earn official PCI certification.

In this blog, we will explore what PCI certification entails, why it’s important for payment providers and why businesses should choose certified providers to protect against the increasing risks of fraud and data breaches.

What is PCI Certification?

At its core, PCI certification ensures that a company has met rigorous security standards for handling and protecting cardholder data. These standards are built around six key objectives:

1. Network security -  the company maintains a high level of network and communication security by leveraging security systems such as firewalls and encryption to protect data from unauthorized access.
2. Data protection - clear safeguards are in place to protect cardholder data during storage and transmission.
3. Vulnerability management - a vulnerability management program is established that includes up-to-date anti-virus systems.
4. Access controls - strong access controls are implemented to restrict access to sensitive data on a need-to-know basis.
5. Monitoring and testing -  the company regularly monitors and tests networks to identify weaknesses and ensure security protocols are effective. 
6. Information security -  a defined information security policy is in place to guide secure practices. 

PCI Compliance vs. PCI Certification 

To be PCI-compliant, a company must simply adhere to security guidelines and conduct a self-assessment to ensure that they are meeting all requirements. The main difference between compliance and certification is in the verification. Where PCI compliance relies on a self-assessment, PCI certification involves a thorough audit by a third-party Qualified Security Assessor (QSA).

Certification is not just about following the rules; it’s about proving compliance through a thorough, independent evaluation. The QSA reviews the entire software development process, staff training and technical security controls and confirms that all standards are upheld. Obtaining PCI certification gives a business proof that they have, in fact, implemented all necessary safeguards to protect customer information.

Ultimately, PCI certification provides a higher level of scrutiny and reassurance than PCI compliance alone. 

Why PCI Certification Matters for Payment Providers

Considering that 51% of enterprises experienced a data breach in the last two years, companies must take data security seriously to prevent becoming part of this statistic. Choosing a PCI-certified payment provider offers businesses several key advantages, including:

• Risk Mitigation - the primary goal of PCI DSS is to prevent data breaches. Certified providers adopt advanced measures such as encryption and firewalls to protect data. Restrictions on storing sensitive card details make it harder for hackers to access systems and limit the damages if they do manage to get in. 
• Avoiding Fines and Penalties - working with certified providers minimizes the risk of financial losses and penalties, legal issues, and reputational damage arising from a security incident. For example, in the event of a data breach, businesses working with non-compliant providers could face legal claims from customers. 
• Building Trust - displaying the PCI-certified seal signals that a business prioritizes the safety of its customers’ data. This assurance can help to establish trust and foster stronger client relationships. 
• Competitive Advantage - with cyberattacks on the rise, businesses and individuals look for those that go above and beyond basic compliance. PCI certification sets providers apart from competitors by showcasing their commitment to data security. 

The Legal and Financial Implications of Non-Compliance

There can be significant ramifications if a payment provider is not PCI compliant, whether on purpose or by accident. The most common non-compliance issues include:

• Improperly installed firewalls or outdated anti-virus software
• Using default vendor passwords for systems
• Lack of access restrictions for sensitive data
• Failure to test security protocols and systems regularly

These or any other non-compliance actions can have legal, financial and/or reputational repercussions, such as:

• Fines and Penalties - non-compliance fines can range from $5,000 - $100,000 per month until the issue is resolved, depending on the size of the company and the nature or severity of the breach. According to an IBM report, 20% of organizations pay $250,000 or more following data breaches. 
• Compensation Costs - beyond fines, businesses may need to cover damages incurred by affected customers in case of a breach, adding to the financial strain of non-compliance. 
• Reputational Damage - once trust is lost it’s hard to gain it back, as evidenced by studies showing that 81% of consumers would stop engaging with a brand after a data breach. 
• Legal Consequences - Failing to meet PCI standards can expose companies to lawsuits, particularly if negligence contributes to a breach. 

Prioritizing Security 

The sheer volume of sensitive and personal data handled by companies collecting or issuing payment makes them prime targets for hackers. Cybercriminals will not give up their fight and will continue to find new ways to infiltrate systems and capture valuable financial information. 

To combat this, companies must be proactive and protect customers against the constant threat of data breaches and the resulting financial and emotional toll. PCI-certification stands as a critical benchmark, offering peace of mind, risk mitigation and trust. By ensuring that you choose a PCI-certified payment provider, you are proving your commitment to protecting sensitive customer information as well as safeguarding your business against legal, financial and reputational risks. 

Berkeley Payment Solutions is proud to be PCI-certified, reflecting our commitment to the highest standards of security and ensuring peace of mind for you and your customers.  Contact us today to learn how we can support your business securely and reliably.