More and more small businesses are beginning to accept credit card payments from their customers both online and offline. As with any business that processes, stores, or transmits payment cardholder data, small businesses are responsible for adhering to PCI DSS standards in order to keep their customer’s card information safe. This includes implementing processes and software for properly managing cardholder data, keeping firewall and virus protection programs up-to-date and properly training employees on compliance standards. Compliance is more than just adhering to industry regulations - it also helps you earn the trust of your customers and provide different payment options to remain competitive.
What is PCI?
Payment Card Industry (PCI) Compliance refers to a set of standards designed to protect cardholder information for businesses that store, process, or transmit payment data both online and offline. The specific PCI Data Security Standards (PCI DSS) consist of 12 requirements that vary depending on company size and the number of credit card transactions processed. These standards should be reviewed regularly to ensure compliance with the appropriate level. The 12 requirements can be found below but can also be grouped into three main sections:
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The full list of 12 PCI DSS requirements:
- Install and maintain a firewall configuration to protect cardholder data.
- Do not use vendor-supplied defaults for system passwords and other security parameters.
- Protect stored cardholder data using encryption, hashing, or truncation.
- Encrypt transmission of cardholder data across open, public networks.
- Protect all systems against malware and update anti-virus software regularly.
- Develop and maintain secure systems and applications by applying security patches.
- Restrict access to cardholder data to only those who need it for business purposes.
- Identify and authenticate access to system components (e.g., use unique IDs for users).
- Restrict physical access to cardholder data.
- Track and monitor all access to network resources and cardholder data.
- Regularly test security systems and processes (e.g., run vulnerability scans and penetration tests).
- Maintain a policy that addresses information security for all personnel.
Failure to validate your business’s compliance according to the correct PCI level, and not following the standards above can lead to fines, penalties and even the termination of your right to accept cards. Aside from the possible legal consequences, failure to adhere to PCI compliance standards puts your company at risk for data theft. Simply put, someone could get a hold of your database and gain full access to information that is unencrypted.
Review Your Current Processes
If your company handles cardholder information, having a secure system in place is essential. However, existing processes can sometimes make it challenging to maintain proper security. Here are two common obstacles:
- Employee Habits: Staff may unintentionally store credit card information in unencrypted fields out of habit or due to a lack of easy access to a secure database. This could mean writing down details on paper or using spreadsheets. Managing cardholder information in this manner violates PCI Standards, the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, and very likely also puts you in violation of your merchant agreement. These infractions can result in fines, penalties and even the termination of your right to accept credit cards – in addition to the loss of sales and customer confidence in your company’s ability to protect their data.
- Data Migration: Moving stored credit card information from unprotected fields into a secure database can be a complex, time-consuming process. Ensuring a smooth transition of data requires careful planning and execution.
In order to avoid this type of situation, managers must implement proper processes for accepting credit card information, employees must be trained on meeting PCI Compliance and any accounting software or programs used for storing card data must provide encrypted databases.
Choose PCI-Compliant ERP Software
The best way to secure cardholder data? Implement PCI compliant ERP software and refine your business processes and policies to align with industry security standards. Here’s what to look for in a compliant solution:
- Secure Data Storage: Your ERP system should store sensitive cardholder information in a fully encrypted, separate database to prevent unauthorized access.
- Expert-Led Data Migration: Transitioning existing cardholder data to a secure environment can be complex—choose a vendor with experience in seamless, secure migrations.
- Integrated Credit Card Processing: Some ERP solutions offer built-in credit card processing functionality. This allows businesses to process payments directly from Accounts Receivable, Record Payments, or Sales Order screens using a software-based terminal.
- Cost and Efficiency Benefits: Integrated payment processing reduces transaction time, eliminates the need for physical card terminals (and their rental fees), and improves accuracy by minimizing manual data entry.
PCI Compliance Goes Beyond Software
While choosing the right ERP system is crucial, it’s only one part of achieving full PCI DSS compliance. Businesses must also:
- Implement strong access controls and security protocols
- Train employees on secure payment handling procedures
- Conduct regular audits and compliance checks
By proactively ensuring compliance each year, your business can avoid costly penalties, build customer trust, and stay competitive in an increasingly security-conscious market.
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