A-EP - E-commerce merchants using third-party payment processors SAQ B - Merchants using standalone, dial-out terminals SAQ C-VT - Merchants using virtual terminals SAQ C - Merchants with payment systems connected to the internet SAQ D - Merchants not covered by other SAQ types 5. Conduct Vulnerability Scans Quarterly vulnerability scans by an Approved Scanning Vendor (ASV) are required for most merchants. Scans identify security vulnerabilities in your network that could expose cardholder data. 6. Maintain Ongoing Compliance PCI DSS compliance is not

one-time event. You must: Complete annual SA

completion Vulnerability scanning services Ongoing monitoring and maintenance 3. Scope Reduction Many businesses have unnecessarily large PCI DSS scopes because cardholder dat

enters their environment. Reducing scope requires implementing secure payment technologies that keep data out of your systems. 4. Ongoing Maintenance Maintaining compliance requires continuous effort: Regular security updates and patches Ongoing monitoring and log review Staff training and awareness Documentation and policy updates Incident response and remediation How to Reduce PCI DSS Compliance Scope The most effective way to reduce compliance burden is to minimize the amount of cardholder da

PCI Compliance Guide: Complete Requirements and...

What Is PCI DSS Compliance?

The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Created by the major card brands (Visa, Mastercard, American Express, Discover, JCB), PCI DSS helps protect cardholder data and reduce payment card fraud.

PCI DSS compliance is mandatory for any business that handles cardholder data. Non-compliance can result in significant fines, increased transaction fees, loss of payment processing privileges, and damage to your reputation.

Who Needs PCI DSS Compliance?

PCI DSS applies to any organization that:

Accepts credit or debit card payments
Stores, processes, or transmits cardholder data
Handles cardholder data in any form
Uses third-party payment processors (you're still responsible for compliance)

This includes businesses of all sizes, from small retailers to large enterprises, across all industries.

The 12 PCI DSS Requirements

PCI DSS version 4.0.1 consists of 12 core requirements organized into six goals:

Goal 1: Build and Maintain a Secure Network

Requirement 1: Install and maintain network security controls

Protect your network with firewalls, routers, and other security controls. Define and document firewall rules, restrict access to cardholder data environments, and regularly review and update security configurations.

Requirement 2: Apply secure configurations to all system components

Change default passwords and security settings, remove unnecessary software and services, and implement secure system configurations following vendor recommendations and industry best practices.

Goal 2: Protect Cardholder Data

Requirement 3: Protect stored cardholder data

If you must store cardholder data, protect it with encryption, hashing, or tokenization. Minimize data storage, implement data retention and disposal policies, and ensure sensitive authentication data is never stored.

Requirement 4: Protect cardholder data with strong cryptography during transmission

Encrypt cardholder data when transmitting across open, public networks. Use strong encryption protocols (TLS 1.2 or higher), never send cardholder data via unencrypted email or messaging, and verify certificate validity.

Goal 3: Maintain a Vulnerability Management Program

Requirement 5: Protect all systems and networks from malicious software

Deploy and maintain anti-virus software on all systems commonly affected by malware. Keep anti-virus definitions current, perform regular scans, and ensure anti-virus cannot be disabled by unauthorized users.

Requirement 6: Develop and maintain secure systems and software

Develop secure applications and systems, apply security patches promptly, follow secure coding practices, and maintain an inventory of custom software and third-party components.

Goal 4: Implement Strong Access Control Measures

Requirement 7: Restrict access to cardholder data by business need to know

Limit access to cardholder data to only those individuals whose job requires such access. Document access policies, review access rights regularly, and implement role-based access controls.

Requirement 8: Identify users and authenticate access to system components

Assign unique IDs to each person with computer access, use strong authentication methods (multi-factor authentication), and implement secure password policies.

Requirement 9: Restrict physical access to cardholder data

Control physical access to facilities and systems that store or process cardholder data. Use access controls, visitor logs, video surveillance, and secure storage for media containing cardholder data.

Goal 5: Regularly Monitor and Test Networks

Requirement 10: Log and monitor all access to network resources and cardholder data

Implement logging mechanisms to track access to cardholder data, monitor logs regularly, and retain logs for at least one year. Logs should capture who, what, when, where, and how for all access.

Requirement 11: Test security of systems and networks regularly

Perform regular security testing including vulnerability scans, penetration testing, and network security assessments. Test after any significant changes and address identified vulnerabilities promptly.

Goal 6: Maintain an Information Security Policy

Requirement 12: Support information security with organizational policies and programs

Maintain a comprehensive information security policy, assign responsibility for security, conduct security awareness training, and establish incident response procedures.

PCI DSS Compliance Levels

PCI DSS compliance requirements vary based on your transaction volume:

Level 1 Merchants

Merchants processing over 6 million card transactions annually:

Annual on-site PCI assessment by a Qualified Security Assessor (QSA)
Quarterly network scans by an Approved Scanning Vendor (ASV)
Attestation of Compliance (AOC) form completion

Level 2 Merchants

Merchants processing 1-6 million card transactions annually:

Annual Self-Assessment Questionnaire (SAQ)
Quarterly network scans by an ASV
May require on-site assessment depending on card brand

Level 3 Merchants

Merchants processing 20,000-1 million e-commerce transactions annually:

Annual SAQ completion
Quarterly network scans by an ASV

Level 4 Merchants

Merchants processing fewer than 20,000 e-commerce transactions or up to 1 million non-e-commerce transactions annually:

Annual SAQ completion
Quarterly network scans by an ASV (may be required)

How to Achieve PCI DSS Compliance

1. Understand Your Scope

Identify all systems, networks, and processes that handle cardholder data:

Map your card data flow
Identify all systems that store, process, or transmit card data
Document network architecture
Identify all third-party service providers
Understand data retention requirements

2. Reduce Your Compliance Scope

The best way to simplify compliance is to reduce the amount of cardholder data in your environment:

Use DTMF masking to keep card data out of call recordings
Implement agent-assisted payments so staff never see or hear card details
Use tokenization for recurring payments
Minimize data collection and storage
Use secure payment links instead of collecting card data directly

By reducing scope, you can often move from Level 1 to Level 2 or 3, significantly reducing compliance costs and complexity.

3. Implement Security Controls

Address each of the 12 PCI DSS requirements:

Install and configure firewalls and network security
Encrypt cardholder data in transit and at rest
Implement access controls and authentication
Deploy anti-virus and security software
Develop secure applications and systems
Implement logging and monitoring
Conduct regular security testing
Maintain security policies and procedures

4. Complete Your Self-Assessment Questionnaire (SAQ)

Most merchants complete an SAQ to demonstrate compliance. The SAQ type depends on how you accept payments:

SAQ A - Card-not-present merchants using third-party payment processors
SAQ A-EP - E-commerce merchants using third-party payment processors
SAQ B - Merchants using standalone, dial-out terminals
SAQ C-VT - Merchants using virtual terminals
SAQ C - Merchants with payment systems connected to the internet
SAQ D - Merchants not covered by other SAQ types

5. Conduct Vulnerability Scans

Quarterly vulnerability scans by an Approved Scanning Vendor (ASV) are required for most merchants. Scans identify security vulnerabilities in your network that could expose cardholder data.

6. Maintain Ongoing Compliance

PCI DSS compliance is not a one-time event. You must:

Complete annual SAQ or assessment
Conduct quarterly vulnerability scans
Monitor and review logs regularly
Update security controls as needed
Train staff on security policies
Respond to security incidents promptly

Common PCI DSS Compliance Challenges

1. Understanding Requirements

PCI DSS requirements can be complex and technical. Many businesses struggle to understand what's required and how to implement controls effectively.

2. Cost of Compliance

Compliance can be expensive, especially for Level 1 merchants requiring annual QSA assessments. Costs include:

Security technology and tools
Staff training and resources
Annual assessments or SAQ completion
Vulnerability scanning services
Ongoing monitoring and maintenance

3. Scope Reduction

Many businesses have unnecessarily large PCI DSS scopes because cardholder data enters their environment. Reducing scope requires implementing secure payment technologies that keep data out of your systems.

4. Ongoing Maintenance

Maintaining compliance requires continuous effort:

Regular security updates and patches
Ongoing monitoring and log review
Staff training and awareness
Documentation and policy updates
Incident response and remediation

How to Reduce PCI DSS Compliance Scope

The most effective way to reduce compliance burden is to minimize the amount of cardholder data in your environment:

1. Use Secure Payment Technology

Modern payment solutions can dramatically reduce your PCI DSS scope:

DTMF masking prevents card data from entering call recordings
Agent-assisted payments keep card data out of your systems entirely
Secure payment links allow customers to enter card details directly with payment processors
Tokenization replaces card numbers with secure tokens

2. Minimize Data Collection

Only collect and store cardholder data that's absolutely necessary:

Don't store card numbers unless required for recurring payments
Never store CVV codes or PINs
Use tokenization for recurring payments
Implement data retention and disposal policies

3. Use Third-Party Payment Processors

When possible, use payment processors that handle card data directly, reducing your compliance scope. But, you're still responsible for ensuring your systems and processes don't expose card data.

Frequently Asked Questions

What's PCI DSS compliance?

PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards designed to protect cardholder data. Compliance is mandatory for any business that handles credit or debit card information.

Who needs PCI DSS compliance?

Any business that accepts, processes, stores, or transmits cardholder data must comply with PCI DSS, regardless of size or transaction volume.

What are the 12 PCI DSS requirements?

The 12 requirements cover network security, data protection, vulnerability management, access control, monitoring and testing, and information security policies.

How can I reduce my PCI DSS compliance scope?

Reduce scope by using secure payment technology that keeps card data out of your environment, minimizing data collection, and using tokenization for recurring payments.

What happens if I'm not PCI DSS compliant?

Non-compliance can result in fines, increased transaction fees, loss of payment processing privileges, and damage to your reputation. In the event of a data breach, penalties can be severe.

PCI DSS compliance is essential for any business that handles cardholder data. By understanding the requirements, implementing appropriate security controls, and reducing your compliance scope through secure payment technology, you can achieve and maintain compliance while protecting your customers and your business.

If you're looking to reduce your PCI DSS compliance burden and improve payment security, contact Paytia to learn how our secure payment solutions can help keep card data out of your environment and simplify your compliance efforts.