A lot of financial data is sent back and forth over online networks every day. Whether it be within a bank, between banks, or at the consumer level, millions, if not billions, of dollars shift around every day solely through an online network.All of that information is valuable in and of itself. This information can tell anyone looking at them how much is being transferred to whom, and in certain systems, could even open up the possibility of re-routing that transaction to an account held by a malicious party. This is why the security of payment processors that help transfer funds between buyers and sellers of goods is of the utmost importance. To make a proper standard to hold payment processors accountable, the Payment Card Industry (PCI) has created a set of standards required to be upheld by those who deal in payment processing.
Who needs PCI compliance? Any business that stores, accepts, transmits, or stores credit card information is required to be PCI-compliant. More information on exactly what types of businesses are governed by PCI compliance laws can be found at
Is PCI Compliance required | Powercash21. Compliance is enforced by acquiring banks (banks who handle merchant accounts) and credit card companies themselves.
Is PCI a one-size-fits-all? Although each and every business needs PCI compliance, the level of security required isn't the same for a mom and pop hardware store than it is, for say, a major online retailer such as Amazon. There are four levels of PCI compliance in descending level of security. This means that a PCI compliance of 4 is the most basic, and PCI compliance of 1 is the most advanced.PCI compliance of 4 is for those who process less than 20,000 Visa transactions per year.PCI compliance of 3 is for those who process anywhere from 20,000 to 1 million Visa transactions per year.PCI compliance of 2 is for those who process anywhere from 1 million to 6 million Visa transactions per year.PCI compliance of 1 is for those who process more than 6 million Visa transactions per year. At this point, Visa may impose other restrictions or do more tests to ensure that the merchant is truly equipped to handle many payments per year, and guarantee proper security of the system on a 24/7 basis.Suffice to say, depending on how many transactions you deal with, you'll need a certain clearance level. Major payment processors give different clearance levels after they have been given the chance to properly appraise how a business deals in credit card information. Going to a higher compliance level involves adequately upgrading your system, such that payment processors are confident in your ability to keep customer information safe.
Conclusion PCI compliance might seem like a bit of a hassle for businesses, but without the system of PCI compliance, there would be a much bigger risk that entire financial networks could become compromised and lead to the loss of thousands, if not millions, of dollars worldwide in the blink of an eye. Those who work with credit cards need to be able to prove to their clients that their information is safe and won't be used fraudulently or acquired by malicious entities.
