Understanding PCI DSS History and Certification Process

The Payment Card Industry Data Security Standard (PCI DSS) has a rich history that dates back to 2004, when it was first introduced by the major credit card companies, including Visa and Mastercard.

In 2004, the PCI Security Standards Council (PCI SSC) was established to manage the PCI DSS and ensure its continued relevance and effectiveness.

The PCI DSS was initially developed in response to a growing number of data breaches and security incidents that were compromising sensitive payment information.

The standard was designed to provide a common set of security requirements for merchants and service providers that handle payment card information.

The history of PCI DSS is a fascinating story that dates back to 2004 when American Express, Visa, MasterCard, Discover Financial Services, and JCB International joined forces to establish a set of security standards to combat rising payment fraud.

In 2004, the PCI DSS 1.0 was introduced, requiring all merchants that accepted credit cards to comply with the new standard.

The PCI Security Standards Council (PCI SSC) was formed in 2006 to oversee the standard and ensure its ongoing evolution.

The first version of PCI DSS, version 1.0, was released on December 15, 2004, and featured a basic yet comprehensive set of security standards for merchants to follow.

Version 1.1, released in 2006, called for merchants to review all online applications and install firewalls to their systems for added security.

Here's a timeline of the major versions of PCI DSS:

The PCI SSC continues to regularly update the standard to reflect current best practices, with the latest version being PCI DSS 4.0, released in March 2022.

PCI compliance is mandatory for all businesses that accept credit card payments.

The PCI DSS audit is a crucial step in achieving compliance, and it involves an External QSA (Qualified Security Assessor) or an ISA (Internal Security Assessor) for Level 1 organizations.

To demonstrate compliance, a Report on Compliance (ROC) and an Attestation of Compliance (AOC) report must be issued by the PCI QSA or ISA, which formally documents the company's compliance with the PCI DSS standard.

Here are the key steps for PCI DSS merchant Level 1 compliance requirements:

As a merchant, achieving PCI DSS Merchant Level 1 compliance is a significant milestone. You'll need to undergo an annual on-site PCI DSS audit, which will result in the issuance of a Report on Compliance (ROC) and an Attestation of Compliance (AOC) report.

To be considered a Level 1 merchant, you must process more than 6 million card transactions annually. This level of compliance requires a more rigorous audit process than lower levels.

A PCI DSS audit is a thorough examination of your company's security practices and systems. For Level 1 merchants, this audit must be conducted by a Qualified Security Assessor (PCI QSA) or an Internal Security Assessor (ISA).

You'll also need to perform a total of four network scans quarterly by a PCI Approved Scanning Vendor (ASV). These scans help identify vulnerabilities and ensure your systems are secure.

Here are the specific requirements for PCI DSS Merchant Level 1 compliance:

PCI DSS certification means a business has met the requirements established by the PCI SSC, which are essentially best practices for data security and payment operations that ensure transactions with a given organization are safe.

Some common practices under the PCI DSS include using antivirus software, encryption and tokenization, firewall installation, data access controls, and network monitoring.

These practices are part of the 12 PCI-DSS requirements across six broad goals. The six broad control objectives include building and maintaining a secure network, protecting cardholder data, maintaining a vulnerability management program, implementing strong access control measures, monitoring and testing networks regularly, and maintaining an information security policy.

To build and maintain a secure network, companies should install and maintain firewalls to keep cardholder data safe and change vendor-supplied default passwords and other security measures.

Here are the six broad control objectives in a concise list:

The Payment Card Industry Data Security Standard (PCI DSS) has a rich history that dates back to the late 1990s when online shopping emerged.

The first payment security standards were established by Visa in 1999, with the Cardholder Information Security Program (CISP) being implemented in 2001. This was a response to the growing threat of online fraud.

The lack of a unified standards caused confusion among merchants, who struggled to achieve compliance with multiple security compliance programs.

In 2004, the Payment Card Institute was established, but it wasn't until 2006 that the Payment Card Industry Security Standards Council (PCI SSC) was formed by American Express, Discover Financial Services, JCB International, MasterCard, and Visa Inc.

The PCI SSC manages 15 standards for payment security, which are applicable to various entities in the payment ecosystem.

The 12 PCI DSS requirements are the foundation behind the security standards, with a focus on protecting cardholder data and ensuring the security of credit card transactions.

Here are the 12 PCI DSS requirements:

By following these requirements, merchants can mitigate risks to their security systems and maintain secure systems to protect cardholder data.

The PCI DSS audit is a crucial process that ensures businesses handling credit card information meet the required security standards. It's mandatory for all businesses that accept credit card payments.

The audit consists of an External QSA (Qualified Security Assessor) or an ISA (Internal Security Assessor) for Level 1 organizations. This is a rigorous process that involves a thorough examination of a company's systems and processes.

A PCI DSS audit can be quite daunting, but it's essential for businesses to ensure they're compliant. The audit results in the issuance of ROC and AOC Compliance Reports, which formally document a company's compliance with the PCI DSS standard.

There are four types of PCI compliance reports: Report on Compliance (ROC), Attestation of Compliance (AOC), Approved Scanning Vendor (ASV) Scan Report, and Self-Assessment Questionnaire (SAQ) Form.

Here's a breakdown of the different types of PCI compliance reports:

The frequency and type of audit required depend on the level of the organization. Level 1 service providers, for example, must conduct on-site audits annually and submit ROC and AOC reports.

PCI DSS compliance is crucial for businesses handling credit cardholder information to protect against theft, fraud, and misuse.

The Payment Card Industry Security Standards Council (PCI SSC) regularly updates PCI DSS to enhance payment security for merchants, issuers, processors, and organizations.

The latest version of PCI DSS is version 4.0, designed to ensure consumer data safety throughout transactions.

I.S. Partners has extensive experience working with diverse industries requiring PCI DSS compliance, guiding businesses through the nuances of the framework.

PCI-DSS v3.2.1 is the current version, released on May 31, 2018, with relatively minor changes.

It introduced clarification updates and corrections to previous requirements, revising several standard requirements from the original PCI-DSS.

The PCI DSS recently released version 4.0, which took effect on March 31, 2024, marking the first major update since version 3.2 was released eight years ago.

This new version includes 63 new requirements aimed at ensuring the standard stays current with emerging threats, technologies, and changes in the payment industry.

Here is a brief overview of the major updates in PCI DSS 4.0:

Note that PCI DSS v4.0 has not yet fully launched all its requirements, with v3.2.1 remaining active until March 31, 2024, providing a transition period.

v3.2.1 was released on May 31, 2018.

It introduced relatively minor changes, like clarification updates and a correction to previous requirements.

The revisions included updates to several standard requirements that were part of the original PCI-DSS.

It's worth noting that these changes were made to improve the clarity and effectiveness of the standard.

V4.0 is a significant update to the PCI DSS standard, released on March 31, 2022, but it won't be fully effective until March 31, 2025.

The new version includes 64 new requirements, with some labeled as "future-dated" that will become mandatory by the 2025 deadline. These future-dated requirements are considered best practices until then, and organizations are encouraged to implement them early to enhance their security posture.

This update marks the first major change to the standard since version 3.2 was released eight years ago. The new version includes increased emphasis on penetration testing, phased implementation, and clarification of key concepts, among other updates.

Here are some key updates in PCI DSS 4.0:

Organizations need to prepare for the transition by inventorying their compliance status, closing any gaps, and engaging third-party expertise if needed by the March 2024 and 2025 deadlines.