How Does PCI Compliance Work When Changing Your Card Processor?

Switching Providers and PCI Compliance

The Payment Card Industry Data Security Standard (PCI DSS) is a globally recognised security framework designed to protect sensitive financial information. Established by major credit card networks, its purpose is to minimise fraud risks and ensure secure card transactions. PCI DSS compliance is mandatory for any business that accepts card payments, regardless of size or transaction volume. When merchants switch their card processors or upgrade their payment systems, understanding PCI compliance is crucial to maintaining security and avoiding potential breaches.

Why PCI Compliance Matters

Data breaches and identity theft pose significant risks to businesses and consumers alike. Every time a customer makes a card payment—whether in-store via chip and PIN, over the phone, or online—they entrust businesses with their financial and personal data. Businesses must protect this information while ensuring transactions remain secure.

Maintaining PCI compliance not only helps prevent cyber threats but also strengthens a business’s security posture, reducing exposure to fraud. While compliance does not guarantee complete immunity from cyberattacks, it significantly lowers risk and mitigates potential damage in the event of a breach. Moreover, non-compliance can lead to financial penalties, reputational harm, and loss of customer trust.

Key Benefits of PCI Compliance

• Enhanced Data Security: Implementing PCI DSS best practices minimises the risk of unauthorised data access and security breaches.

• Customer Trust and Confidence: Demonstrating compliance reassures customers that their payment information is handled securely, fostering loyalty.

• Avoiding Financial Penalties: In cases of non-compliance, businesses may face fines or liability for fraudulent transactions and breaches.

• Essential for Risk Management: Compliance is a key element of cybersecurity, ensuring businesses proactively address vulnerabilities and protect customer data.

Understanding PCI DSS Compliance Requirements

The PCI DSS framework consists of three key steps:

1. Assess – Identify cardholder data, review IT assets and payment processing systems, and evaluate potential security vulnerabilities.

2. Remediate – Address vulnerabilities by implementing necessary security measures and minimising data storage.

3. Report – Compile reports detailing compliance efforts and submit them to acquiring banks and payment card brands as required.

Best Practices When Switching Card Processors

If you are considering switching your card machine or payment processor, follow these best practices to ensure PCI compliance:

• Choose a PCI-Compliant Provider – Work with a processor that adheres to PCI DSS standards and has robust security measures in place.

• Secure Your Network – Use firewalls, encryption, and other security controls to safeguard payment data.

• Conduct Regular Security Assessments – Perform audits, vulnerability assessments, and penetration testing to identify and mitigate risks.

• Train Employees on Security Best Practices – Ensure your staff understands how to handle cardholder data securely and prevent security breaches.

PCI DSS Compliance Framework

The PCI DSS outlines 12 core security requirements:

Build and Maintain Secure Systems

1. Install and maintain network security controls.

2. Apply secure configurations to all system components.

Protect Cardholder Data

3. Protect stored cardholder data.

4. Use strong encryption when transmitting cardholder data over public networks.

Maintain a Vulnerability Management Programme

5. Protect systems and networks from malicious software.

6. Keep systems and software updated with security patches.

Implement Strong Access Control Measures

7. Restrict access to cardholder data based on business needs.

8. Authenticate and identify all users accessing system components.

9. Restrict physical access to cardholder data.

Monitor and Test Networks Regularly

10. Log and monitor all access to system components and payment data.

11. Perform regular security testing and vulnerability scans.

Maintain an Information Security Policy

12. Establish and enforce security policies and procedures to protect payment data.

Tools for PCI Compliance Assessment

Each major card brand has its own compliance programmes:

• American Express: www.americanexpress.com/datasecurity

• Discover: www.discovernetwork.com/fraudsecurity/disc.html

• JCB International: www.jcb-global.com/english/pci/index.html

• MasterCard: www.mastercard.com/sdp

• Visa Europe: www.visaeurope.com/ais

PCI Compliance Assessments

The PCI Security Standards Council (PCI SSC) oversees compliance and offers two assessment options:

• Qualified Security Assessors (QSAs): Certified professionals who conduct PCI DSS audits and assessments.

• Approved Scanning Vendors (ASVs): Authorised entities that perform vulnerability scans for merchants and service providers.

Self-Assessment Questionnaire (SAQ)

For businesses that are not required to undergo an on-site audit, the SAQ serves as a validation tool. Different versions of the SAQ apply based on business size and transaction methods. More details are available at www.pcisecuritystandards.org/saq/index.shtml.

How Merchant Advice Service Can Help

Navigating PCI compliance when switching your card processor can be complex, but you don’t have to do it alone. Merchant Advice Service (MAS) provides expert guidance to ensure your business remains compliant and secure throughout the transition. Whether you need help choosing a PCI-compliant provider, securing your network, or understanding SAQ requirements, our team is here to assist. Contact us today to discuss how we can support your business in maintaining compliance and ensuring seamless payment processing.