Avoiding PCI non-compliance fees: Best practices

PCI non-compliance fees are a costly penalty that businesses can face when they fail to meet the Payment Card Industry Data Security Standard (PCI DSS). These fees not only impact your bottom line but can also pose significant risks to your reputation and operations. Understanding how to avoid these fees is essential for any business processing credit card payments. In this blog, we’ll explore what PCI non-compliance fees are, their implications and actionable steps to ensure your business remains compliant.

PCI non-compliance fees: an overview

The PCI DSS was established by the PCI Security Standards Council to protect cardholder data and secure credit card transactions. Non-compliance fees arise when businesses fail to meet these security standards.

Compliance with PCI DSS requirements isn’t just a regulatory mandate — it’s a critical step in safeguarding sensitive payment data and maintaining trust with your customers. Non-compliance can result in financial penalties, legal issues and reputational harm that may take years to recover from.

How PCI non-compliance fees impact your business

Beyond the immediate financial burden, failing to comply with PCI DSS can lead to a host of operational problems. For instance, if your business continues to process payments without meeting PCI standards, you could face suspension of your ability to process credit card transactions. This can lead to a significant disruption in your ability to conduct business and cause frustration among customers who rely on card payments.

Furthermore, non-compliance fees can result in long-term damage to your business’s reputation. When your customers’ sensitive data is compromised due to poor security practices, the trust you’ve built with them may be shattered. This loss of trust can be difficult to rebuild and may lead to a loss of customers, damaging your bottom line for years to come.

How much are non-compliance fees?

PCI non-compliance fees vary widely depending on the payment processor and the severity of the violation. These fees can start at $20 per month, however, prolonged non-compliance can lead to significantly higher penalties or even suspension of your ability to process credit card payments.

For example, certain service providers may impose additional fines if your business experiences a data breach while non-compliant. The immediate financial burden is only the beginning. Data breaches often involve costly investigations, legal expenses and the need to notify affected customers, which further escalates the financial impact.

In addition to direct penalties, non-compliance can trigger reputational damage and increased scrutiny from payment processors. In some cases, businesses might lose partnerships with payment processors altogether, which can disrupt operations and even prevent them from accepting credit card payments in the future.

Escalating penalties for continued non-compliance

It's important to note that many processors include escalating fines for extended periods of non-compliance. For example, if your business fails to comply for several months or even years, you could face substantial fines, possibly amounting to thousands of dollars in added expenses annually.

Escalating penalties serve as an additional incentive for businesses to address compliance issues promptly. Remember, the cost of compliance is significantly lower than the potential financial and operational impact of non-compliance. Ignoring PCI DSS standards today could lead to far-reaching consequences down the road, both financially and in terms of reputation.

7 best practices for avoiding PCI non-compliance fees

To avoid costly PCI non-compliance fees and ensure your business remains PCI compliant, consider implementing the following best practices:

Conduct regular audits

Perform regular audits to identify vulnerabilities in your payment processing systems. Regular assessments help you stay ahead of potential issues and maintain ongoing compliance with PCI DSS standards. Internal and external audits also demonstrate your commitment to maintaining a secure payment environment, fostering trust with your customers and partners.

It’s essential to recognize that staying compliant isn’t just about performing audits once every few years. Regular, proactive audits are key parts of any business’s security strategy. They help you identify potential areas of weakness before they become a threat and allow you to address those issues quickly.

Train staff on PCI standards

Your employees play a key role in maintaining PCI compliance. Ensure all staff involved in payment processing are thoroughly trained on the latest PCI DSS requirements and best practices for handling cardholder data. Staff education should include recognizing phishing attempts, properly storing sensitive information and understanding their role in maintaining security.

Employee training shouldn’t be a one-time event. Regular refresher courses and updates are essential to keep your team aware of evolving threats and best practices for protecting customer data. Educated employees will be more likely to identify and prevent potential payment security issues, ultimately reducing the risk of a breach and helping your business remain compliant.

Implement strong access controls

Restrict access to sensitive payment data to only those employees who need it. Using role-based permissions and strong password protocols can reduce the risk of unauthorized access. Consider implementing multi-factor authentication (MFA) for an added layer of security. Access logs should also be regularly reviewed to identify and address potential issues.

Managing access to cardholder data is one of the most effective ways to reduce the risk of data breaches. By ensuring that only authorized individuals have access to sensitive information, you can prevent unauthorized access that could lead to violations of PCI DSS standards.

Use encryption and tokenization

Encrypting cardholder data and implementing tokenization can safeguard sensitive information against cyberattacks. This not only helps protect your customers but also reduces your PCI compliance burden. Encryption ensures that even if data is intercepted, it remains unreadable without the proper decryption key. Tokenization replaces sensitive data with unique identifiers, further enhancing security.

Both encryption and tokenization are valuable tools for protecting sensitive data. By making it harder for cybercriminals to access usable payment information, you can significantly reduce your risk of data breaches and non-compliance.

Keep security systems up-to-date

Regularly update your software, hardware and security protocols to address evolving threats. Compliance requires you to stay current with industry standards and technology advancements. Outdated systems are vulnerable to new forms of cyberattacks, making it essential to maintain up-to-date firewalls, anti-virus software and other security measures.

Cybersecurity threats are constantly evolving and businesses must adapt to stay protected. Keeping your security systems up-to-date ensures you can counter new threats and continue meeting PCI DSS standards.

Choose a transparent payment processor

Partner with a payment processor that offers clear and transparent pricing without a hidden non-compliance fee. The right provider can simplify PCI compliance and help you avoid unnecessary penalties. A reputable processor should also offer resources and support to help you navigate PCI DSS requirements effectively.

It’s critical to select a payment processor that prioritizes compliance and offers support when you need it. Look for a processor that makes the PCI compliance process easy to understand and implement.

Monitor compliance continuously

Maintaining PCI compliance isn’t a one-time effort. Regular monitoring and continuous improvement are key to staying compliant. Implement tools and processes to track your compliance status and quickly address any identified gaps. Consider working with a managed security service provider to streamline this process.

Ongoing monitoring is an essential part of maintaining PCI compliance. It ensures that your business can quickly identify and resolve issues before they result in violations or penalties. For a quick reference, check out our comprehensive PCI compliance checklist.

Compliance made easy with Sekure Payment Experts

Achieving and maintaining PCI compliance doesn’t have to be overwhelming. With Sekure Payment Experts, you can take advantage of the PCI Plus program, which simplifies the compliance process for merchants of all sizes. Here’s how we make compliance effortless:

• No program, non-compliance or PCI Fees: Our PCI Plus program eliminates these fees entirely.
• No administrative work: We handle the compliance process so you can focus on your business.
• No SAQs, scans or annual check-Ins for many merchants: Many of our clients enjoy a hands-free compliance experience.
• Dedicated Support Team: Access our experts to address any questions or concerns about PCI compliance.
• SecureTrust Platform: Benefit from an industry-leading cloud-based security solution to ensure ongoing compliance.

Sekure’s PCI Plus program also provides peace of mind by addressing compliance on your behalf. By automating and simplifying PCI compliance, your business can allocate more resources toward growth and innovation without worrying about penalties or administrative burdens. Whether you’re a small business or a large enterprise, our program is tailored to fit your needs.
Taking the time to ensure PCI compliance today will help you avoid hefty penalties, safeguard your business from reputational damage and provide the security your customers expect. Make the move toward PCI compliance now to ensure peace of mind for both you and your customers.