Why Should You Comply With PCI Compliance?
Visa will fine or disbar a merchant whose cardholder data is compromised and is later found not to be in compliance with CISP.
Consumers Want Security
Recent media reports of hacker incidences, stolen credit card numbers, and identity theft have triggered, for consumers, a serious concern about information security among consumers. Today, consumers want absolute assurance from businesses that their credit card numbers and other personal information is secure.
Minimized Threat to Reputation and Financial Position
The financial penalties and resource outlay is minimal compared to the loss of significant revenue and goodwill that can result from having customers personal information stolen.
Disclosure of Cardholder Information
Merchants may only disclose Visa transaction information to service providers approved by Visa.
CISP Compliance Penalties
Failure to comply with CISP standards or to rectify a security issue may result in:
- Fines (described below)
- Restrictions on the merchant; or
- Permanent prohibition of the merchant or service provider's participation in Visa programs.
The following fines apply for non-compliance, within a rolling 12-month period:
| First Violation |
$50,000 |
| Second Violation |
$100,000 |
| Third Violation |
Management discretion |
Why should you be concerned about:
- Financial Risk – MasterCard will fine Acquirers up to $500,000 and up to an additional $25 per card that is compromised. Visa will fine Acquirers up to $500,000 and any chargeback itemspurchased fraudulently for compromised cards. The Acquirers have every right to pass these fines directly on to the restaurant.
- Reputational Risk – 38 of the 50 states have laws require that you notify all of your customers of a compromise of cardholder information. Many consumers would not wish to use their card on your website again if they are aware of a previous compromise. They would also informothers about what happened to them. This would have a substantial impact on business.
Now that we know about the dangers to both you and the consumer, what can we do about it? In the Quick Guide to Online Credit Card Security we explore all the potential areas that you can be exposed and how we can deal with it. Download your copy now.
If you would like more information on PCI and what you can do to protect your online business, call us today at 1-800-331-8882.
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