What is PCI DSS?
PCI DSS (Payment Card Industry Data Security Standard) is a globally recognized set of security standards created to ensure that all companies that store, process, or transmit credit card information maintain a secure environment. Managed by the PCI Security Standards Council, PCI DSS is mandatory for all merchants, payment processors, aggregators, and service providers handling cardholder data.
Why PCI DSS Matters
In the digital payments ecosystem, data breaches and fraud are constant threats. PCI DSS helps businesses:
- Protect sensitive cardholder information
- Reduce fraud and chargebacks
- Build customer trust
- Avoid penalties from card networks
Being PCI DSS compliant is not just a best practice; it’s a requirement if you handle card data.
PCI DSS Requirements
- Install and maintain a secure firewall
- Do not use vendor-supplied defaults for passwords and security
- Protect stored cardholder data
- Encrypt cardholder data across open/public networks
- Use antivirus software and keep it updated
- Develop and maintain secure systems and apps
- Restrict access to cardholder data
- Assign unique IDs to everyone with access
- Restrict physical access to card data
- Track and monitor all access to network resources
- Test security systems regularly
- Maintain an information security policy
PCI DSS Compliance Levels
PCI DSS has 4 compliance levels based on annual transaction volume:
- Level 1: Over 6 million transactions/year
- Level 2: 1–6 million
- Level 3: 20,000–1 million
- Level 4: Less than 20,000
Each level has specific validation requirements such as:
- Onsite audits (Level 1)
- Self-Assessment Questionnaire (SAQ)
- Quarterly network scans by ASV
Who Needs to Be PCI DSS Compliant?
- Merchants (online or offline)
- Payment Aggregators
- Payment Gateways
- Fintech service providers
- Data storage providers handling card info
Non-compliance can lead to hefty fines, data breaches, loss of business, and delisting from card networks like Visa or Mastercard.
PCI DSS vs. Other Security Standards
| Standard | Focus Area | Mandatory? |
|---|---|---|
| PCI DSS | Cardholder data security | Yes |
| ISO 27001 | InfoSec management systems (ISMS) | No |
| SOC 2 | Service provider data controls | No |
| GDPR | Personal data privacy (EU) | Yes (in EU) |
Frequently Asked Questions (FAQs)
What does PCI DSS stand for?
PCI DSS stands for Payment Card Industry Data Security Standard.
Who enforces PCI DSS compliance?
PCI DSS is managed by the PCI Security Standards Council, formed by Visa, Mastercard, American Express, Discover, and JCB.
What happens if a company is not PCI compliant?
Non-compliance can result in penalties, increased transaction fees, legal action, or being banned from accepting card payments.
Is PCI DSS required for UPI or QR payments?
No. PCI DSS applies only to card payments (credit/debit). UPI and wallet transactions are governed by NPCI and other RBI guidelines.
How often do you need to renew PCI DSS certification?
PCI DSS compliance must be validated annually and may include quarterly vulnerability scans depending on your level.