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[P155]Pci Compliant Service Providers

by Amy Nutt, Amy

The payment card industry providers such as VISA, MasterCard and American Express are now enforcing PCI compliance. Non-compliance can result in fines, restrictions or possibly permanent expulsion from card acceptance programs. If your business depends on accepting credit cards, then you have no choice than to become PCI compliant.

The new Payment Card Industry (PCI) data security standards are network security and business practice guidelines developed by Visa, MasterCard, American Express and Discover Card. They were developed to establish a 'minimum security standard' with regards to the protection of cardholders' account and transaction information.

What are PCI DSS requirements?

The PCI Data Security Standard represents a common set of industry tools and measurements to help merchants and credit card processors that store, process or transmit cardholder data ensure the safe handling of sensitive cardholder information. The standard provides an actionable framework for developing a robust account data security process that includes preventing, detecting and reacting to security incidents.

What are the benefits of working with a PCI Compliant Service Provider?

By working with a PCI compliant service provider you can ensure that cardholder account data being processed across your technical environment is protected. PCI DSS protects cardholders and minimizes the risk to your business.

The main benefits of implementing the PCI CSS for your organization and working with a provider that is compliant are:

- Protecting customer personal data
- Increasing customer trust by demonstrating your commitment to the security of their personal information
- Protecting your business from financial penalties
- Leveraging a hosting provider's existing PCI DSS compliancy investment i.e. your technical infrastructure resides in a data centre that has already been audited
- Potential savings starting at $100,000 in capital expenditures by outsourcing to a managed service provider that is PCI compliant

Who has to comply?

The credit card companies have made it clear that ANY entity that stores, processes, or transmits cardholder data regardless of their transaction volume, are required to comply with the PCI requirements. Failure to comply with the PCI security standard may result in substantial fines or permanent expulsion from card acceptance programs.

Recent studies on financial fraud have indicated that hackers are increasingly targeting small, commercial Web sites, increasing the need for all merchants and service providers to become fully compliant with the Payment Card Industry (PCI) Data Security Standard (DSS).

What do I need to do to meet the PCI standards?

The PCI standard comprises two basic steps:
1. Pass quarterly remote vulnerability scans conducted by a Visa and MasterCard "Qualified Independent Scan Vendor". Scans are required for all Internet connection points whether they are office networks or home/office connections (dial-up, DSL, cable or wireless) or permanent Internet servers such as your web site and email server, etc.

2. Successful completion of a security self-assessment questionnaire. The self assessment questionnaire asks specific questions about your internal security practices, both on your web site and in your office.

We all want to know that our financial information is protected when shopping at online and traditional businesses. Unfortunately, many people have learned the hard way about fraud after they have lost thousands of dollars. Although businesses have taken a number of measures to improve their security, there are still many online shady individuals engaging in credit and debit card fraud. Online criminals are constantly seeking new ways of gaining access to people's financial and personal information. The financial cost of fraud is massive. Any business that accepts credit and debit card payment information should comply with the Payment Card Industry Data Security Standards (PCI DSS). Businesses need to assure their customers that they are protected by complying with the PCI DSS.

Consumer confidence in how personal information is managed is one of the most critical elements required for a businesses success. Creating and fostering a good business reputation can take years, but destroying it can be instant. A multi-million dollar business can be irrevocably harmed by the loss of their reputation. With the creation of the Payment Card Industry Data Security Standard (PCI DSS), the assistance that has been much needed has now been developed to secure the use of credit and debit cards. Businesses that process and store customer credit and debit card data are now required legally to be PCI compliant and to conduct business practices under a strict set of rules. PCI compliancy has boosted confidence in spending by implementing twelve strict regulations which protects their customers' personal and financial information from such threats as hackers, viruses, worms, Trojans and more.

PCI compliance covers a number of areas such as that installing a firewall, including encryption during transmission of card data, implementing regular updates of anti-virus software, and implementing computer maintenance and protocols such as monitoring and testing the networks in order to reduce security breaches.

PCI compliance has provided consumers and businesses with the security and assurance to trust in carrying out business transactions safely and securely online and in person. PCI DSS drastically reduces the risk of identity theft and fraud, thereby reducing customer loss and profit loss.

Increased knowledge of the PCI system and the implemented safeguards and regulations, tells customers that the risk of having their information stolen is significantly reduced. As well, the sizeable fines for non-compliance are a huge deterrent for one who fails to maintain compliancy. Smart Shoppers look for a secure site that is a PCI compliant company. Most people will not do business with an unprotected company.

Because business today depends on electronic transactions and payment processing for the majority of their payments, PCI compliance needs to be the highest priority. A business that fails to register for payment card identity compliancy will fall behind in an extremely competitive business world.

With the expansion and constant development of the internet, consumers are now demanding high quality goods and services with a minimum risk of fraud. Being PCI compliant allows a customer to feel confidant and secure about the purchases they make. Knowledgeable and cautious shoppers look for security when shopping so it makes sense that a business becomes PCI compliant. The result will be repeat customers and an increase in conversions which will lead to an increase in profits.

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Both Amy Nutt & A Nutt are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Amy Nutt has sinced written about articles on various topics from Culture and Society, Recreation and Sports and Women. For e-commerce sites that involve online credit card payments, this certification will provide greater security features for business and cust. Amy Nutt's top article generates over 368000 views. to your Favourites.

A Nutt has sinced written about articles on various topics from . As credit card fraud is increasing, businesses are becoming PCI compliant. In addition, is practicing audits on a regular ba. A Nutt's top article . to your Favourites.