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If you accept credit card payments on your website, it’s important to understand PCI compliance and how a PCI-compliant payment gateway can help protect your business and customers. In this blog post, we will discuss PCI compliance and its significance.
Understanding PCI-Compliant Payment Gateway
A PCI-compliant Payment gateway is a system that allows merchants to accept credit and debit card payments online through a secure portal that is compliant with the Payment Card Industry Data Security Standard (PCI DSS).
PCI compliance, or Payment Card Industry Data Security Standard (PCI DSS) compliance, is a set of security standards that were developed by the Payment Card Industry Security Standards Council to help businesses that accept credit and debit card payments securely manage cardholder data.
It contains requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures. Using a PCI-compliant payment gateway ensures cardholder data is properly protected according to PCI DSS standards when customers pay online.
What is a PCI-Compliant Payment Gateway?
A PCI-compliant payment gateway is a secure intermediary between a merchant’s website and payment processors like banks and credit card companies. When a customer wishes to pay on a merchant’s website, the payment details and information are sent securely to the PCI-compliant payment gateway instead of directly to the merchant.
This is important as it prevents the merchant’s website and servers from directly receiving, transmitting, or storing sensitive cardholder data. The PCI-compliant payment gateway then transmits the payment details to the appropriate payment processors while ensuring all PCI DSS rules and protocols are followed.
This includes security measures like transport layer security (TLS) for encrypting cardholder data in transit, firewalls, intrusion prevention systems, and other safeguards. By having a PCI-compliant payment gateway handle the payment process, the merchant’s website is relieved of the responsibility of securing cardholder data and the risk of data breaches. This is the primary benefit of using a PCI-compliant payment gateway.
Key Aspects of a PCI-Compliant Payment Gateway
There are a few key aspects that define a true PCI-compliant payment gateway:
- It provides a secure interface between the merchant and payment processors so that cardholder data never touches the merchant’s servers.
- All communication between the customer, gateway and processors is encrypted with strong industry-standard encryption like TLS.
- The payment gateway has the appropriate PCI DSS certification after undergoing rigorous security audits and validation of its systems and processes.
- Advanced fraud detection and monitoring tools are integrated to identify and prevent fraudulent transactions.
- Robust reporting features give merchants insights into sales, payments, refunds and other crucial business metrics.
- Scalable infrastructure can support spikes in transaction volumes without performance issues.
- Regular security updates and PCI DSS compliance maintenance is handled by the payment gateway provider.
- Advanced rule-based configuration gives control over payments, redirection and other customisations.
Significance of PCI Compliance
Being PCI compliant is important for several key reasons:
1. Protects Cardholder Data
PCI compliance ensures cardholder data is properly secured and encrypted to prevent data breaches and fraud. This protects sensitive customer payment information.
2. Avoids Fines
Payment brands can levy large fines on businesses that are not PCI compliant or suffer a data breach. PCI compliance helps merchants avoid these fines.
3. Maintains the Ability to Process Payments
A business may lose its ability to accept credit cards if it fails to remediate PCI compliance issues after a breach or audit. PCI compliance is required to continue accepting card payments.
4. Reduces Legal Liability
If card data is compromised due to a lack of security, a merchant could face costly litigation and legal fees. PCI compliance demonstrates due diligence to protect customers.
5. Improves Customer Trust
Consumers want to know if a business will keep their payment details safe. PCI compliance builds confidence and trust with customers.
Given these important benefits, all merchants should strive for PCI compliance to protect their business, customers, and ability to accept credit card payments.
However, achieving and maintaining PCI compliance can be challenging and expensive for some merchants. This is where a PCI-compliant payment gateway can help.
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As a global leader in payment processing, NTT DATA Payment Services provides merchants access to online payments through its PCI-compliant payment gateway.
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Conclusion
A PCI-compliant payment gateway provides merchants with a secure and compliant way to accept online credit and debit card payments without having to meet PCI DSS requirements themselves.
By acting as an intermediary between merchants and payment processors, the PCI-compliant payment gateway ensures that cardholder data is encrypted and safeguarded according to PCI standards. This enables merchants to focus on their core business while seamless online payments are handled in the most secure manner.
FAQs
1. What is PCI compliance?
PCI compliance refers to compliance with the Payment Card Industry Data Security Standard. It is a set of security standards developed by PCI Security Standards Council to help businesses securely store, process and transmit credit/debit card information.
2. What are the benefits of PCI compliance?
Key benefits are protecting cardholder data from breaches, avoiding fines, maintaining the ability to process payments, reducing legal liability and improving customer trust.
3. What is a PCI-compliant payment gateway?
It is a secure system that allows merchants to accept online credit/debit card payments through a portal that complies with PCI DSS. It acts as an intermediary to prevent card data from touching the merchant’s servers.
4. How does a PCI-compliant payment gateway work?
It receives payment details from customers on the merchant’s website. Then, it encrypts the data and transmits it securely to payment processors following all PCI DSS rules. This protects card data and relieves merchants of PCI compliance responsibilities.
5. How can a payment gateway help merchants with PCI compliance?
By acting as an intermediary, a PCI-compliant payment gateway enables merchants to accept card payments without having to meet PCI DSS requirements themselves. This reduces compliance burden and costs.
