WHAT IS PCI? WHY IS PCI IMPORTANT?

Posted by Apoorv Joshi on February 27th, 2018

When you begin exploring your options for merchant accounts, you have to learn a whole new vocabulary. Some terms are more straightforward than others, though. One thing that many business owners find confusing is PCI compliance. While it may seem complex, it’s important to understand just what the term means and how it affects payment gateway providers.

What Is PCI?

PCI is the shortened version of the acronym PCI DSS, which stands for Payment Card Industry Data Security Standard. It’s a set of best practices that was developed by a group called the Payment Card Industry Security Standards Council back in 2006. The purpose of the council was to set up an industry-wide set of security standards and used input from the five major credit card companies: JCB, Visa, MasterCard, Discover and American Express.
There are 12 key components of the PCI DSS standard.

What Does PCI Compliant Mean?

When a company is “PCI compliant,” it means that they are processing payments in a way that is in line with all of the standards set forth by the PCI DSS guidelines.

Why Does It Matter if I Am PCI Compliant?

Many people believe that PCI compliance is required by law; however, except for in a few states that have adopted the PCI DSS as a part of their consumer protection laws, it is not. You won’t go to jail for not being PCI compliant, but that doesn’t mean that there are no consequences.
For one thing, you could be fined by any of the credit card companies that you accept through your merchant account. The size of the fine varies, but it can be quite large if a data breach occurred that resulted in significant financial losses.

Author Section: This article is written by ChApporve Joshi, provide knowledge for chargebacks and how to fight or reduce chargebacks. Chargeback Expertz is a Detailed Risk Management Company helping Retail and Online Merchants. Chargeback Expertz’s system is designed to defend the eCommerce Business against all types of Fraud and Threats.