# Sponsored Forums > Eyecare Practice Management >  PCI FAQ's

## ODpayments

I get asked questions concerning PCI compliance on a weekly basis so I thought I would post some hard facts about PCI.  What it is and the importance of being compliant.  I received this info from the PCI security counsel.  A fantastic resource for any business owner.  Most of you will be considered a level 4 merchant.  see below

*What is PCI?* 
*A:* The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that *ALL* companies that *process, store* or* transmit* credit card information maintain a secure environment.  Essentially any merchant that has a Merchant ID (MID). The Payment Card Industry Security Standards Council (PCI SSC) was launched on September 7, 2006 to manage the ongoing evolution of the Payment Card Industry (PCI) security standards with focus on improving payment account security throughout the transaction process.  The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the major payment card brands (Visa, MasterCard, American Express, Discover and JCB.).  It is important to note, the payment brands and acquirers are responsible for enforcing compliance, not the PCI council.  

*Q: To whom does PCI apply?* 
*A:* PCI applies to ALL organizations or merchants, regardless of size or number of transactions, that accepts, transmits or stores any cardholder data. Said another way, if any customer of that organization ever pays the merchant directly using a credit card or debit card, then the PCI DSS requirements apply

*Q: What are the PCI compliance levels and how are they determined?* 

*A:* All merchants will fall into one of the four merchant levels based on Visa transaction volume over a 12-month period. Transaction volume is based on the aggregate number of Visa transactions (inclusive of credit, debit and prepaid) from a merchant Doing Business As (DBA). In cases where a merchant corporation has more than one DBA, Visa acquirers must consider the aggregate volume of transactions stored, processed or transmitted by the corporate entity to determine the validation level. If data is not aggregated, such that the corporate entity does not store, process or transmit cardholder data on behalf of multiple DBAs, acquirers will continue to consider the DBAs individual transaction volume to determine the validation level.  Merchant levels as defined by Visa:

Merchant Level
Description

1
Any merchant -- regardless of acceptance channel -- processing over 6M Visa transactions per year. Any merchant that Visa, at its sole discretion, determines should meet the Level 1 merchant requirements to minimize risk to the Visa system.

2
Any merchant -- regardless of acceptance channel -- processing 1M to 6M Visa transactions per year.

3
Any merchant processing 20,000 to 1M Visa e-commerce transactions per year.

*4*
*Any merchant processing fewer than 20,000 Visa e-commerce transactions per year, and all other merchants -- regardless of acceptance channel -- processing up to 1M Visa transactions per year.*


_ * Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher validation level._
_Source_

*Q:*
*What does a small-to-medium sized business (Level 4 merchant) have to do in order to satisfy the PCI requirements?*


*A:* To satisfy the requirements of PCI, a merchant must complete the following steps:


Identify your Validation Type as defined by PCI DSS  see below .  This is used to determine which Self Assessment Questionnaire is appropriate for your business.


Complete the Self-Assessment Questionnaire according to the instructions in the Self- Assessment Questionnaire Instructions and Guidelines.

Complete and obtain evidence of a passing vulnerability scan with a PCI SSC Approved Scanning Vendor (ASV).  *Note* scanning does not apply to all merchants.  It is required for Validation Type 4 and 5  those merchants with external facing IP addresses.  Basically if you electronically store cardholder information or if your processing systems have any internet connectivity, a quarterly scan by an approved scanning vendor is required.

Complete the relevant Attestation of Compliance in its entirety (located in the SAQ tool).

Submit the SAQ, evidence of a passing scan (if applicable), and the Attestation of Compliance, along with any other requested documentation, to your acquirer.

Im a small merchant with very few card transactions; do I need to be compliant with PCI DSS?
All merchants, small or large, need to be PCI compliant. The payment brands have collectively adopted PCI DSS as the requirement for organizations that process, store or transmit payment cardholder data.

*Q: If I only accept credit cards over the phone, does PCI still apply to me?* *A:* Yes. All business that store, process or transmit payment cardholder data must be PCI Compliant.

*Q: Do organizations using third-party processors have to be PCI compliant?* *A:* Yes. Merely using a third-party company does not exclude a company from PCI compliance. It may cut down on their risk exposure and consequently reduce the effort to validate compliance.  However, it does not mean they can ignore PCI.

*Q: My business has multiple locations, is each location required to validate PCI Compliance?*
 *A:* If your business locations process under the same Tax ID, then typically you are only required to validate once annually for all locations. And, submit quarterly passing network scans by an PCI SSC Approved Scanning Vendor (ASV), if applicable.
*Q: What are the penalties for noncompliance?* 
*A:* The payment brands may, at their discretion, fine an acquiring bank $5,000 to $100,000 per month for PCI compliance violations. The banks will most likely pass this fine on downstream till it eventually hits the merchant. Furthermore, the bank will also most likely either terminate your relationship or increase transaction fees.  Penalties are not openly discussed nor widely publicized, but they can catastrophic to a small business. 
It is important to be familiar with your merchant account agreement, which should outline your exposure.

*Q: What is defined as cardholder data?* 
*A:* Cardholder data is any personally identifiable data associated with a cardholder. This could be an account number, expiration date, name, address, social security number, etc. All personally identifiable information associated with the cardholder that is stored, processed, or transmitted is also considered cardholder data.

*Q: Can the full credit card number be printed on the consumers copy of the receipt?* 
*A:* PCI DSS requirement 3.3 states "Mask PAN when displayed (the first six and last four digits are the maximum number of digits to be displayed). While the requirement does not prohibit printing of the full card number or expiry date on receipts (either the merchant copy or the consumer copy), please note that PCI DSS does not override any other laws that legislate what can be printed on receipts (such as the U.S. Fair and Accurate Credit Transactions Act (FACTA) or any other applicable laws). See the italicized note under PCI DSS requirement 3.3 Note: This requirement does not apply to employees and other parties with a specific need to see the full PAN, nor does the requirement supersede stricter requirements in place for displays of cardholder data (for example, for point of sale (POS) receipts). Any paper receipts stored by merchants must adhere to the PCI DSS, especially requirement 9 regarding physical security.
Source:  PCI SSC

*Q: Do I need vulnerability scanning to validate compliance?* *A:* If you electronically store cardholder data post authorization or if your processing systems have any internet connectivity, a quarterly scan by a PCI SSC Approved Scanning Vendor (ASV) is required.

*Q: What is a network security scan?* 
*A:* A network security scan involves an automated tool that checks a merchant or service provider's systems for vulnerabilities. The tool will conduct a non-intrusive scan to remotely review networks and Web applications based on the external-facing Internet protocol (IP) addresses provided by the merchant or service provider. The scan will identify vulnerabilities in operating systems, services, and devices that could be used by hackers to target the company's private network.  As provided by an Approved Scanning Vendors (ASVs) such as ControlScan the tool will not require the merchant or service provider to install any software on their systems, and no denial-of-service attacks will be performed.  Note, typically only merchants with external facing IP address are required to have passing quarterly scans to validate PCI compliance. This is usually merchants completing the SAQ C or D version.

*Q: How often do I have to scan?
* *A:* Every 90 days/once per quarter you are required to submit a passing scan. Merchants and service providers should submit compliance documentation (successful scan reports) according to the timetable determined by their acquirer. Scans must be conducted by a PCI SSC Approved Scanning Vendor (ASV). ControlScan is a PCI Approved Scanning Vendor.
*Q: What if a merchant refuses to cooperate?
* *A:* PCI is not, in itself, a law. The standard was created by the major card brands such as Visa, MasterCard, Discover, AMEX, and JCB. At their acquirers/service providers discretion, merchants that do not comply with PCI DSS may be subject to fines, card replacement costs, costly forensic audits, brand damage, etc., should a breach event occur. 
For a little upfront effort and cost to comply with PCI, you greatly help reduce your risk from facing these extremely unpleasant and costly consequences.

This is some great info. PCI compliance does not have to be a nightmare or expensive.  We charge $99 per year and help you thru it.  We also give you the option of finding it on your own for less money. Just send us the proof that you are in compliance and we waive the $99 for you.  Feel free to ask me anything.  I will post some real life example of business that were actually breached and how and why it happened.  Knowing is half the battle.  If your current company does not educate you then chances are they are making more than they should from you

Michael

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