The PCI Non Compliance Fee: A Guide to Prevention and Compliance

The PCI Non Compliance Fee can be a costly mistake for businesses that accept credit card payments.

Non-compliance can result in fines of up to $100,000 per year.

The PCI Non Compliance Fee is a penalty imposed by credit card companies for non-compliance with Payment Card Industry Data Security Standard (PCI DSS) regulations.

Businesses must adhere to strict security standards to protect sensitive customer data.

A single data breach can lead to significant fines and damage to a company's reputation.

A PCI non-compliance fee is a penalty imposed by payment processors or acquiring banks on businesses that fail to meet the required Payment Card Industry Data Security Standard (PCI DSS) compliance standards.

The cost of non-compliance can vary significantly depending on the severity and duration of the non-compliance, as well as the specific policies of the acquiring bank or payment processor. Typically, businesses might incur monthly non-compliance fees ranging from $5 to $100 per month, or one-time penalties ranging from $5,000 to $50,000.

Failing to complete or maintain the Self-Assessment Questionnaire (SAQ) is the most common reason for a PCI non-compliance fee to be imposed. Your provider may impose a PCI non-compliance fee without notice to you, and it will continue to charge this fee every month until you bring your account back into compliance.

The industry average for PCI non-compliance fees is about $20-$30 per month. However, some providers may charge more or less depending on their policies.

Here are some possible consequences of PCI non-compliance:

The costs and fees associated with PCI non-compliance can be significant. PCI non-compliance fines can range from $5,000 to $100,000, depending on the level and volume of transactions processed.

The costs of non-compliance don't stop there. Acquiring banks may impose higher transaction fees, making day-to-day operations more costly. Non-compliant merchants can also be held liable for fraud or data breaches that occur, leading to costs associated with investigations, customer notifications, credit monitoring, and compensation for impacted customers.

In some cases, non-compliance can lead to lawsuits from affected customers, adding significant legal fees to the financial burden. A prime example is Target's 2013 data breach, which was tied to PCI non-compliance and ultimately cost them $292 million.

Merchant account providers that charge for PCI compliance may impose this charge either annually or monthly. In the payments industry, PCI compliance fees generally average around $120 per year or $10 per month. However, providers are free to charge for PCI compliance any way they want to, so naturally, there's a lot of variation from one company to the next.

Here's a breakdown of how several of the most popular merchant services providers in the industry charge for PCI compliance:

Some merchant services providers don't charge for PCI compliance, including CDGcommerce, Dharma Merchant Services, and Stax. However, this doesn't mean that you're getting PCI compliance services for free. In most cases, the PCI compliance cost for a small business is covered through either a higher monthly account fee, higher processing rates, or a combination of the two.

Using a full-service Payment Service Provider (PSP) can significantly reduce a merchant's PCI compliance costs. By handing over cardholder data ownership to the PSP, merchants can avoid most PCI-DSS rules and associated fees.

However, this comes with a trade-off: merchants must limit themselves to the PSP's services and fees, and cannot switch to a different PSP without losing access to their stored cardholder data.

Full-service PSPs can save merchants money on PCI compliance, but merchants must carefully consider the terms of their agreement to avoid being held hostage by the PSP.

If you're a business that handles a moderate amount of card data, you're required to be PCI compliant, even if you're not a Level 1 merchant.

Self-validation is possible, but it requires completing a Self-Assessment Questionnaire, which may also involve vulnerability scanning, penetration testing, and security training.

Businesses that process at least 1 million transactions per year are considered large merchants and may benefit from receiving an audit to ensure compliance.

Level 2 and Level 3 merchants often elect to schedule audits due to the complexity of becoming PCI compliant on their own.

Your acquiring bank may pay for PCI compliance services if you're a small merchant, or you may need to take care of it yourself.

If you process less than 20,000 Visa or MasterCard transactions per year, an onsite audit may not be necessary.

Full-Service PSPs can take ownership of cardholder data, freeing merchants from most PCI-DSS rules.

This means merchants don't have to worry about protecting sensitive data, but they're also entirely dependent on the PSP for their payment processing needs.

By choosing a full-service PSP, merchants can avoid the hassle and expense of PCI compliance, but they're limited to using only that PSP's services and fees.

A merchant's yearly cost of compliance can be reduced significantly, as they're no longer responsible for meeting most PCI-DSS rules.

PCI compliance is essential for any business that handles payment card transactions, protecting sensitive credit information from loss and theft and helping businesses avoid major fines and loss of face due to bad publicity.

Regular penetration testing is a critical component of PCI-DSS compliance, which helps identify weaknesses in your systems and applications, prevent data breaches, and maintain compliance with standards. Businesses should conduct both internal and external penetration tests at least annually or whenever significant changes occur in the network infrastructure.

To stay compliant, businesses must complete the Self-Assessment Questionnaire (SAQ) annually, which is the most common reason merchants are charged a PCI non-compliance fee by their provider. The PCI Security Standards Council publishes several different forms of the SAQ for different types of businesses, which can be found on their website along with instructions and documents to refer to when filling out the SAQ.

By prioritizing security and compliance, businesses can build trust with their customers, ensuring that their sensitive payment information is handled securely.

DSS stands for Data Security Standard, but in the context of payment card industry, it's specifically called PCI-DSS. PCI-DSS is a set of security requirements designed to ensure that companies handling credit card information maintain a secure environment.

The major credit card companies like Visa, MasterCard, American Express, Discover, and JCB developed this standard through the PCI Security Standards Council. This council aimed to protect sensitive cardholder data from theft and fraud.

The primary purpose of PCI-DSS is to enhance payment card data security, reduce the risk of data breaches, and improve overall network security for businesses handling cardholder information. By adhering to this standard, businesses can build trust with their customers.

Here are the key benefits of PCI-DSS compliance:

PCI compliance is essential for any business that handles payment card transactions. It protects sensitive credit information from loss and theft, and helps businesses avoid major fines and loss of face due to bad publicity.

Complying with PCI DSS regulations can be a daunting task, but working with a dependable partner like TrustNet offers multiple benefits for companies trying to achieve and preserve PCI compliance.

Meeting cybersecurity goals can be a daunting task, and many businesses face significant barriers. One major obstacle is the lack of resources, including budget constraints and insufficient personnel.

Business leaders often struggle to secure the necessary funding to implement robust cybersecurity measures. This can lead to a compromised security posture and increased risk of data breaches.

Companies may also face challenges in finding and hiring skilled cybersecurity professionals. This shortage can be particularly acute in smaller organizations with limited budgets.

The pressure to meet cybersecurity and compliance goals can be overwhelming, especially for businesses that are already stretched thin. Secure your business with TrustNet’s PCI-DSS compliance services. Talk to an expert today.

Completing the Self-Assessment Questionnaire (SAQ) is a crucial step in maintaining PCI compliance.

You'll need to update the SAQ annually to avoid non-compliance fees from your provider.

The PCI Security Standards Council (PCI SSC) publishes different forms of the SAQ for various types of businesses.

You can find these forms, instructions, and documents on the PCI SSC website.

Paying an extra $30 per month in junk fees to have your provider remind you that your account is no longer PCI-compliant is a hassle you can avoid.

Choosing a provider that doesn't charge a PCI non-compliance fee is a good starting point. Some payment service providers, like Square and PayPal, take care of PCI compliance for you, so you won't have to worry about getting stung with a PCI non-compliance fee.

You can also prevent non-compliance fines by following proper credit card handling procedures and securing your processing equipment. This includes training your employees and yourself on the latest PCI DSS requirements and best practices.

To stay informed about PCI standards and requirements, consider regular training, engaging with experts, and utilizing online resources.

Here are some key considerations when choosing a payment processor or merchant service provider to avoid unnecessary costs and reduce the risk of non-compliance:

The PCI non-compliance fee can be a significant financial burden, with costs ranging from $5,000 to $100,000 or more per year.

The fee is typically a flat rate per month, with some organizations paying upwards of $1,500 per month.

To avoid these costs, merchants must meet the PCI DSS security standards.

Meeting the standards requires quarterly network scans, which can be outsourced to a qualified security assessor.

The fee is waived if the merchant can demonstrate a valid reason for non-compliance, such as a catastrophic event.

Organizations that are deemed high-risk, such as those handling large amounts of sensitive data, may face higher fees.

In some cases, the fee can be negotiated with the acquiring bank, but this is not always possible.

You might be wondering if PCI compliance fees are just a scam to make you pay more. The truth is, it's not always the case, but it can depend on your merchant account provider's approach.

There are four possible approaches to PCI compliance, and not all of them are created equal. Some providers charge no fee but offer no services to help you maintain compliance, while others charge a fee but provide some services.

The most common approach is for providers to charge a fee and offer services to help keep you compliant. This can be a fair and sensible approach, as long as the cost is reasonable and the services are actually helpful.

However, be aware that some providers will charge a fee but offer no services in exchange. This is essentially a "junk" fee that only benefits the provider, not you.

If you're unsure about your provider's approach, you can try asking your sales agent. However, be prepared to ask follow-up questions to get the information you need.

One way to find out about PCI fees is to check your contract, specifically the Merchant Application section. This is usually where your provider spells out the details of any fees you'll be charged.