What is PCI DSS?

:
A Complete Guide
 Contents

1. Executive Summary ................................................................................................................................

3

2. Introduction ...................................................................................................................................... 4

3. What is PCI DSS? .................................................................................................................................

4

4. What is PCI DSS Certification? ...........................................................................................................

4

5. How Do Businesses Become PCI DSS Certified? ..........................................................................

4

6. The History of PCI .................................................................................................................................

5

7. The Benefits of PCI Compliance ..........................................................................................................

5

8. The Competitive Advantages of PCI Certification and Compliance .............................. 6

9. Where PCI DSS Certification and Compliance Fit into a Risk Mitigation Strategy 6

10. PCI 4.0 ............................................................................................................................................ 7

10.1 PCI Levels .................................................................................................................................7
10.2 PCI 4.0.1 Updates and Differences ........................................................................................
8

11. PCI DSS and Prescient Security ......................................................................................................

8

12. Conclusion .............................................................................................................................................

8

What is PCI DSS?: A Complete Guide 2

 Executive Summary

Introduction to PCI DSS

PCI certification is the foremost approach to making online card
payments safer for customers and service providers alike and now,
with PCI 4.0, the standard has never been stricter or more relevant.

The Fundamentals of PCI DSS

This report will outline what PCI DSS is, how it came to be, and how
businesses can achieve compliance and certification. We’ll also break
down the benefits and advantages of compliance and how it extends
beyond cardholder security to being a vital part of a business’s overall
risk mitigation strategy.

The Evolution of PCI DSS

Though PCI 4.0 hasn’t altered who the standard applies to, it has
altered how it’s applied. Many factors have been enhanced and though
it’s by far the most flexible PCI DSS, this version places much tighter
controls on areas such as password management and encryption.
Prescient Security is uniquely positioned to guide businesses through
these updates and help them get the most out of the certification
process.

What is PCI DSS?: A Complete Guide 3

 1. Introduction
Each report that comes out on online payment fraud and data breaches is another reminder
of how important it is to secure cardholder data. Ignoring this area exposes businesses and
their customers to massive risks. PCI DSS has been and remains the leading standard on this
issue. By understanding how to comply with it, businesses set themselves for greater success
and security.

2. What is PCI DSS?

Every time a card payment occurs, there’s an exchange of sensitive data between the payer, their card
provider, and the merchant. The Payment Card Industry Security Standard (PCI DSS) was created by
the PCI Security Standards Council, made up of the leading global card providers, to protect that data
throughout the payment lifecycle.

Any organization that accepts, processes, transmits or stores credit and debit card information has to
comply and as we’ll explore later, that compliance offers significant benefits. PCI DSS is vital to keeping
all involved safer from the risk of data breaches and fraud.

3. What is PCI DSS Certification?

PCI certification is the process by which organizations demonstrate themselves to be PCI DSS
compliant. There are multiple levels of certification, pertaining to how many transactions an
organization processes each year, with different validation requirements.

The connecting thread of every PCI DSS Certification is that having it proves that an organization has
taken the time to properly protect cardholder data. This includes putting security controls such as
firewalls and encryption into practice and monitoring and restricting access to cardholder data.

4. How Do Businesses Become PCI DSS Certified?

PCI-DSS certification is a highly structured and practical process. It’s designed to help businesses, not
hinder them. Here’s a step-by-step guide on how to become PCI DSS certified:

1. Determine PCI Level: Businesses need to calculate the average

number of transactions they process per year and check the
corresponding PCI DSS level they’re required to comply with.

2. Conduct a Gap Assessment: This can be performed internally or

with assistance from a Qualified Security Assessor (QSA). Either way,
the purpose is to identify any gaps between the security controls
currently in place at a business and what’s required by the PCI DSS
to comply.

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 3. Address the Gaps: Remediation is the next step. Any weaknesses found during the above
need to be addressed. This is when external assistance can be particularly useful, especially for
smaller businesses that might not have anyone on their team with the necessary security
expertise.

4. Validate Compliance: Depending on the PCI Level of a business, either a self-assessment or

external audit will be required to confirm compliance.

Once documents have been submitted and the compliance is validated, certification is issued but the
process doesn’t quite end there. Ongoing compliance will require annual revalidation and sometimes
quarterly scans from external professionals. Security policies and controls also need to be kept up to
date and staff trained in accordance.

5. The History of PCI

As online shopping took off in the 90s and early 2000s, so did online card fraud. Very few websites at
the time were managing cardholder data with any sensitivity and as a result, both they and their
customers were losing money. Due to this, in 2001, Visa established a set of security standards for
businesses processing online payments with its cards.

They were the first major card company to do so but others quickly followed suit. Soon there were
several standards that merchants were expected to comply with. Keeping up with each became near
impossible.

The confusion in this period is what ultimately led to the introduction of the PCI DSS in 2004. A group
of card providers, including Visa, Mastercard, and American Express, came together to formulate a
uniform set of standards to simplify things for merchants and service providers. Having one set of
standards to follow made it easier for organizations to comply and, in turn, boosted cardholder
protections.

Since 2004, the PCI DSS has been updated a few times over to reflect changing threats and
technologies. In that time, it’s also become the main way in which businesses can legitimize their
payment processing and ensure cardholder security.

6. The Benefits of PCI Compliance

One of the best ways to understand PCI compliance is by looking at the key benefits it provides:

Improves Security for Cardholder Data: Compliance requires companies to have proper
encryption, monitoring, etc to protect payment data. This places both customers and
merchants in a much more secure position.

Boosts Overall Security: The requirements of PCI compliance don’t just enhance
cardholder protections, but overall cyber security hygiene. It forces businesses to take a
closer look at areas such as access control and password management which boosts
protections against hackers and other online threats.

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 Reduce Risk: Data breaches can cause major reputational, legal, and financial damage.
By complying with PCI standards, businesses reduce this risk.

Avoid Fines and Legal Issues: Non-compliance is costly. Card providers are known to
issue fines in the thousands to businesses that process payments without certification.
It also exposes businesses to lawsuits and other penalties if they’re found to have put
cardholder data at risk.

Builds Customer Trust: Seeing that an organization has certification allows customers
to trust them more. It shows that the business is taking data security seriously and
reassures customers that they can make payments without worry.

7. The Competitive Advantages of PCI Certification and

Compliance
The advantages of PCI certification are highly practical. By getting certified, businesses ensure that
they are:

· Able to process credit and debit transactions without incurring fines.

· Aligned with global standards and thus can operate internationally without worry.

· Ready for vendor assessments and security reviews. Bigger business partners will often
require PCI certification before signing off on things.

· Positioned well to scale up operations. Taking on more customers and expanding where your
services reach is much easier with compliance in place.

· Better protected from data breaches which in turn means that the trust of your customers
stays intact.

· Putting security and accountability first. That’s as valuable to customers as it is to business

partners, especially as these issues appear more and more in the news.

All of the above is crucial to being a successful business these days, especially in the competitive
e-commerce space.

8. Where PCI DSS Certification and Compliance Fit

into a Risk Mitigation Strategy
The risk that data breaches pose to businesses and the ease by which unsecured online payments
can become a vector for these types of attacks makes PCI DSS certification a vital part of any risk
mitigation strategy. If an organization is processing card payments, they need it.

What is PCI DSS?: A Complete Guide 6

 PCI DSS certification isn’t just for show. It is a well-researched, well-proven approach for reducing the
occurrence of data breaches and as a result, helps businesses improve their risk profile. It helps with
operational, legal, cybersecurity, and financial risk management.

Not only does it prevent issues in these areas from occurring by bolstering threat identification and
defense controls, but the process of certification also provides businesses with a clear path on how to
respond to incidents in a way that minimizes exposure. It’s why it’s become such a foundational part
of modern security protocols.

9. PCI 4.0
The PCI DSS has gone through a few updates over the years, with PCI 4.0 being the latest. It was
released in 2022 and the deadline for implementing the new requirements it brought in was March
2025. Below is a closer look at what the latest standard entails.

9.1 PCI Levels

We mentioned previously that a business’s PCI Level determines much of the certification
process. This is how PCI 4.0 has broken things down:

The 4 Levels of PCI DSS

Level Annual Transactions Requirements

· Complete an audit by a QSA.

· File a ROC.
Level 1 Greater than 6 million. · Complete an AOC.
· Perform quarterly network scans and annual
penetration tests.

· Complete a SAQ.
· Submit an AOC.
Level 2 1-6 million.
· Perform a quarterly network scan and annual
penetration test.

· Complete a SAQ.
· Submit an AOC.
Level 3 20,000 – 1 million (E-commerce only).
· Option to submit an ROC and perform an annual
penetration test to improve trust.

Less than 20,000 for E-commerce · Complete a SAQ.

Level 4 or less than 1 million overall. · Should conduct quarterly scans but not required.

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 9.2 PCI 4.0.1 Updates and Differences
Here are the main ways in which PCI 4.0.1 is distinctive from prior versions of the standard:

It provides more flexible compliance options so that businesses with more unique or
advanced security and infrastructure can customize how they achieve the intentions of
the standard.

Continuous compliance is more of a priority. The newer standard puts a greater

emphasis on ongoing testing and monitoring rather than point-in-time security
assessments. This also extends to logging and monitoring.

The authentication requirements are stronger. For example, MFA is now required for all
access to cardholder data, not just when it’s done remotely.

There’s clearer role accountability outlined. Organizations now have to document and
assign responsibility for security controls and tasks.

Encryption and data protection standards have been updated to be much stricter.

10. PCI DSS and Prescient Security

At Prescient Security, we offer expert PCI DSS Assessments that help you not only successfully
validate and maintain certification, but ensure a more secure environment for you and your
customers.

No matter the industry you’re in or the type of assessment you’re seeking, we’re here to help. We take
a risk-based, personalized approach to all our services so that businesses get the most out of the
process with the least amount of hassle.

11. Conclusion
Any organization that accepts, processes, stores, or transmits credit card data benefits from having
proper payment security assessments. It ensures not only that organizations meet PCI standards but
that cardholder data is managed securely and customer relationships protected in the process.

Whether you’re a small business looking to comply with PCI DSS 4.0 or a larger enterprise, we offer a
number of assessment services at Prescient Security that can be tailored to your needs. Additionally,
we facilitate self-assessments and offer penetration testing to help expose possible cybersecurity
vulnerabilities and better comply with PCI.

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 About us:
Prescient Security, a Global Top 20 Independent Audit and Penetration Testing Company, delivers
unparalleled quality in audits, attestations, and certifications to ensure excellence and client success.
Using a Risk-Based Audit Approach versus a Requirement-Based Audit Approach, paired with the ability
to customize audit deliverables based on specific client needs, Prescient Security operates from a
cybersecurity standpoint first, is comprehensive yet granular, and in a fraction of the time.

Learn more about Prescient Security here: www.prescientsecurity.com

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