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In general, PCI compliance is required by credit card companies to make online transactions secure and protect them against identity theft. Any merchant that wants to process, store or transmit credit card data is required to be PCI-compliant, according to the PCI Compliance Security Standard Council.
The PCI DSS applies to all entities that store, process, and/or transmit cardholder data. It covers technical and operational system components included in or connected to cardholder data. If you are a merchant who accepts or processes payment cards, you must comply with the PCI DSS.
PCI Compliance? The Payment Card Industry Data Security Standard (PCI DSS) applies to companies of any size that accept credit card payments. If your company intends to accept card payment, and store, process and transmit cardholder data, you need to host your data securely with a PCI-compliant hosting provider.
Although the PCI DSS must be implemented by all entities that process, store or transmit cardholder data, formal validation of PCI DSS compliance is not mandatory for all entities. Acquiring banks are required to comply with PCI DSS as well as to have their compliance validated by means of an audit.
Is PCI compliance a law? The short answer is no. The long answer is that while it is not currently a federal law, there are state laws that are already in effect (and some that may go into effect) to force components of the PCI Data Security Standard (PCI DSS) into law.
The Payment Card Industry Data Security Standard (PCI DSS), established by the Payment Card Industry Security Standards Council (PCI SSC), globally applies to any company that stores, processes or transmits cardholder information.
Q7: If I only accept credit cards over the phone, does PCI DSS still apply to me? A: Yes. All business that store, process or transmit payment cardholder data must be PCI Compliant.
The PCI DSS applies to any merchant or service provider that handles, processes, stores or transmits credit card data. For merchants, the PCI Security Standards Council has provided on-your-honor compliance validation tools in the form of Self Assessment Questionnaires (SAQ's).
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