- What is a PCI Compliant Payment Gateway?
- Understanding PCI DSS Requirements
- What Changed in PCI DSS v4.0.1?
- The Importance of PCI DSS Compliance
- How a PCI DSS Compliant Payment Gateway Works
- Benefits of Using a PCI DSS Compliant Payment Gateway
- PCI DSS Compliance Levels
- Who needs PCI DSS compliant payment gateway?
- How to achieve PCI DSS compliance cost-effectively
- Maintaining PCI DSS compliance with Akurateco
- Conclusion
The world of digital payments is a strictly regulated area that operates within a highly regulated framework for data security – PCI DSS – that FinTech software providers, merchants, payment processors, and basically, every party that works with sensitive data must comply with to protect customers from fraud. This is precisely where PCI compliant payment gateways become indispensable for secure transaction processing.
If you’re seeking a secure way to accept payments on your website, your primary consideration should be a PCI DSS compliant payment gateway. In this article, we’ll uncover what is a PCI payment gateway, why it is crucial, and who needs it in the first place.
What is a PCI Compliant Payment Gateway?
To understand the concept of a PCI DSS compliant payment gateway, let’s break it down into two parties. First, let’s examine what is a payment gateway.
Payment gateway is a software that enables transaction processing by facilitating electronic transactions and exchanging payment data between customers, PCI compliant payment processors, card networks, issuing banks, acquiring banks, and ultimately a merchants, ensuring the secure and efficient transfer of funds. Simply put, it is a technical layer that allows merchants to accept payments from customers. In other words, it’s essential to utilize PCI compliant payment solutions for secure and smooth payment transactions.
PCI DSS compliance, often called PCI compliance, stands for compliance with the Payment Card Industry Data Security Standard. It is a set of mandatory security standards and best practices established by the Payment Card Industry Security Standards Council (PCI SSC) to protect customers’ sensitive credit card and payment information during and after transaction processing.
Now, let’s combine these two concepts.
PCI compliant payment gateway is software or service that meets PCI DSS security requirements and standards. If a payment gateway is PCI DSS certified, it indicates it has implemented the necessary security measures to safeguard sensitive card data. Thus, choosing among available PCI compliant payment gateways ensures merchants and customers benefit from the highest level of security.
Understanding PCI DSS Requirements
PCI DSS v4.0.1 is built around 12 core requirements that help organizations protect cardholder data and reduce payment security risks. These requirements apply to businesses and service providers that store, process, transmit, or can affect the security of cardholder data.
The 12 PCI DSS requirements are:
1. Install and maintain network security controls.
2. Apply secure configurations to all system components.
3. Protect stored account data.
4. Protect cardholder data with strong cryptography during transmission over open, public networks.
5. Protect all systems and networks from malicious software.
6. Develop and maintain secure systems and software.
7. Restrict access to system components and cardholder data by business need to know.
8. Identify users and authenticate access to system components.
9. Restrict physical access to cardholder data.
10. Log and monitor all access to system components and cardholder data.
11. Test security of systems and networks regularly.
12. Support information security with organizational policies and programs.
In simple terms, PCI DSS requires companies to secure payment systems, protect stored and transmitted card data, control access to payment environments, monitor activity, test systems regularly, and maintain documented security policies.
What Changed in PCI DSS v4.0.1?
PCI DSS v4.0.1 is not a complete rewrite of the standard. It is a limited update to PCI DSS v4.0 that clarifies wording, requirement intent, and guidance.
For payment gateways, PSPs, merchants, and other payment companies, this means PCI DSS compliance should not be treated as a one-time audit. It requires ongoing monitoring, documented responsibilities, regular testing, and clear control over systems that store, process, transmit, or affect cardholder data.
The Importance of PCI DSS Compliance
PCI DSS compliance is of paramount importance for all the parties involved in handling customers’ sensitive card data. Let us take a closer look at why it is essential.
Legal obligations
PCI DSS compliance is not optional for businesses that accept, process, store, or transmit cardholder data. It is required through card brand, acquirer, and payment partner compliance programs, while local laws and regulations may also apply depending on the market. Failure to comply can lead to fines, higher processing costs, increased audit requirements, or even restrictions on payment processing.
Data security
Another threat merchants are concerned about is fraudulent activity. If your software provider is not certified with PCI DSS, it will not likely keep cardholders’ data secure on your website. The consequences can be severe, ranging from financial loss to irreparable reputation damage. The essence of PCI DSS certification is precisely protecting sensitive cardholder data. Compliance ensures robust security measures are in place to safeguard their customers’ sensitive data from unauthorized access, breaches, and theft.
Financial protection
As PCI DSS dramatically reduces the likelihood of data breaches occurring in the first place, it helps businesses avoid the financial repercussions, saving them hundreds of thousands of dollars on fines, legal fees, and expenses related to security enhancements, policy improvements, and compliance efforts to prevent future incidents.
Reputational management
As a business’s reputation stands among its most precious assets, it becomes imperative for enterprises to shield both themselves and their customers from fraud. Failure to do so can result in permanent customer trust loss and irreparable damage to the business’s long-term reputation. This is precisely where PCI DSS steps in, preventing fraud from occurring and damaging your reputation. Utilizing PCI compliant payment solutions significantly reduces the risk of fraudulent activity, protecting your company’s reputation.
Implementing PCI compliant payment solutions not only limits liability but also ensures a proactive approach to payment security.
Customer trust
Whenever a customer wants to make a purchase on a website, they first evaluate how safe it is to enter their payment information. Compliance with PCI DSS makes businesses trustworthy to customers, encouraging them to purchase at your website, knowing their credit card details are secure and protected. If you are wondering how to start a payment processing company, ensuring a high level of security and compliance will be one of the foundational steps to gaining customer trust and establishing a successful business.
Gaining PCI compliance using a payment gateway communicates to users that their payment information is in safe hands.
How a PCI DSS Compliant Payment Gateway Works
A PCI DSS compliant payment gateway facilitates secure online transactions by encrypting and transmitting a customer’s card data, obtaining authorization from their issuing bank, and processing their payment securely.
For a deeper understanding of how payment gateways operate, read the article below:
Throughout the process, the PCI DSS compliant payment gateway maintains a high level of security, ensuring that customer sensitive data is protected at all transaction processing stages. It may also offer additional technologies to protect customers from fraud, such as tokenization (replacing actual card data with randomly generated tokens) and fraud prevention to enhance security further.
To maintain PCI DSS compliance, payment gateways undergo annual audits and assessments to verify their adherence to security standards.
Benefits of Using a PCI DSS Compliant Payment Gateway
There are multiple benefits that a PCI DSS compliant payment gateway offers to online merchants and businesses of all kinds. Among them are:
Legal and regulatory compliance
Payment gateways that adhere to PCI DSS standards help businesses meet legal and regulatory data security requirements. When you leverage PCI compliance using payment gateway, it guarantees that the company operates according to applicable laws and regulations, avoiding any legal repercussions associated with non-compliance.
High-end system security
PCI payment gateway provides advanced technologies for securely handling and storing sensitive card data, ensuring strict adherence to requirements and regulations designed to safeguard customers from fraudulent activities.
Global expansion
PCI DSS standards and requirements are internationally recognized and accepted in many countries around the world. That is why merchants leveraging compliant software can accept transactions worldwide and confidently expand their customer base, knowing that they meet established security standards.
Streamlined transaction processing
PCI compliant payment gateways deliver high efficiency levels. They are designed to process transactions quickly and securely, minimizing delays in payment authorization and processing to ensure a seamless and fast checkout experience.
Pleasant customer experience
When customers make a purchase on a website that utilizes a PCI DSS compliant payment gateway, they experience a hassle-free and secure transaction process that shields them from fraudulent activities. This positive experience fosters loyalty to the merchant, encouraging future purchases. If you are considering offering tailored services or integrating your own platform, you might want to explore how to create a payment gateway to ensure your business provides secure and compliant payment solutions.
PCI DSS Compliance Levels
PCI DSS compliance levels are commonly based on annual transaction volume. The exact validation requirements may vary by card brand, acquirer, region, and business model, so companies should always confirm the final validation route with their acquiring bank or payment partner.
| Level | Transaction volume threshold | Validation requirement | Assessor required |
|---|---|---|---|
| Level 1 | More than 6 million card transactions per year, or any merchant designated Level 1 by a card brand or acquirer | Annual Report on Compliance (ROC) and Attestation of Compliance (AOC) | Yes, usually a Qualified Security Assessor (QSA) or approved internal assessment route where allowed |
| Level 2 | 1 million to 6 million card transactions per year | Annual Self-Assessment Questionnaire (SAQ) and Attestation of Compliance (AOC), unless a ROC is required by the acquirer or card brand | Usually no for SAQ-based validation, but may be required by the acquirer or card brand |
| Level 3 | 20,000 to 1 million e-commerce card transactions per year | Annual SAQ and AOC | Usually no, unless required by the acquirer or card brand |
| Level 4 | Fewer than 20,000 e-commerce card transactions per year, or up to 1 million total card transactions per year depending on card brand/acquirer rules | Annual SAQ and AOC, as required by the acquirer or payment partner | Usually no, unless required by the acquirer or card brand |
Who needs PCI DSS compliant payment gateway?
Now that you’ve gained a solid understanding of the basics of PCI compliant payment gateways, let’s explore who needs them for their business operations.
First and foremost, a PCI payment gateway is crucial for merchants that process payment card transactions, including e-commerce websites, subscription services, retailers, online marketplaces, and basically any business that handles sensitive card data to secure it during transaction processing.
Also, it is mandatory for Payment Service Providers (PSPs) who offer their services to merchants in order to protect the data they handle on their behalf.
To learn more about how to integrate a PCI compliant payment gateway into your website or application, read the article below:
Payment Gateway Integration: A Step-by-Step Guide for Business Owners
How to achieve PCI DSS compliance cost-effectively
Here is a practical process for approaching PCI DSS compliance without overcomplicating the project.
1. Define your PCI DSS scope
Identify where cardholder data is stored, processed, transmitted, or could be affected by your systems, vendors, checkout, payment gateway, and integrations.
2. Confirm your PCI DSS level and validation route
Your transaction volume, role in the payment flow, and acquirer/card brand requirements determine whether you need a Self-Assessment Questionnaire, Report on Compliance, Attestation of Compliance, or QSA-led assessment.
3. Choose the right payment setup
Using a PCI DSS-compliant white-label payment gateway, hosted payment page, tokenization, or payment orchestration layer can reduce the amount of sensitive card data your systems touch.
4. Review gaps against the 12 PCI DSS requirements
Check network security, system configurations, stored data, encryption, malware protection, software security, access control, logging, testing, and internal security policies.
5. Prepare documentation and evidence
Collect policies, architecture diagrams, provider responsibility matrices, scan results, access records, change logs, and other evidence needed for validation.
6. Complete the required assessment
Depending on your level and business model, this may involve completing an SAQ, working with a Qualified Security Assessor, preparing a Report on Compliance, and submitting an Attestation of Compliance.
7. Maintain compliance continuously
PCI DSS compliance is not a one-time task. Businesses need ongoing monitoring, regular testing, vulnerability management, policy reviews, and annual validation.
Maintaining PCI DSS compliance with Akurateco
Akurateco is a PCI DSS Level 1 certified white-label payment software provider that offers advanced technologies and 700+ payment integrations to merchants and PSPs worldwide.
Let’s take a look at PCI compliant payment gateway integration options that are available to our clients:
Clients with a non-PCI DSS compliant payment page
For merchants without PCI DSS-compliant checkout pages, we offer Hosted Payment Page (HPP) integration coupled with a Software Development Kit (SDK) that enables complete customization according to the client’s logo, color scheme, and other branding preferences.
Also, they can integrate a payment gateway via Server-to-Server (S2S) APM that redirects the user to the Akurateco server for payment. Moreover, if merchants work on different platforms such as WooCommerce, PrestaShop, etc., they can use a variety of plugins for payment gateway integration that Akurateco provides.
If a merchant prefers mobile-first e-commerce model they first of all need a powerful backend as a service (MBaaS) and then reliable mobile SDK to perform transactions.
Clients with PCI DSS compliant payment page
If a merchant’s checkout page is PCI DSS compliant, they have the flexibility to select from the integration options listed below:
- HPP
- API rest/API soap (S2S)
- Mobile SDK
- CMS plugins
For businesses interested in obtaining PCI DSS compliance for your business, we offer assistance in achieving Level 3 and Level 4 compliance for merchants and Level 2 compliance for PSPs.
As Akurateco collaborates with leading Qualified Security Assessors (QSAs), our experts can guide you throughout the compliance process step by step, from preparing documents to achieving PCI DSS certification. We’ll also provide the documentation from our side, including details about our system’s architecture and other necessary documents.
Conclusion
Overall, a PCI DSS compliant payment gateway is a crucial component for safeguarding payment data in today’s digital landscape, offering businesses numerous benefits, from enhanced security to streamlined transaction processing. At Akurateco, we provide industry-leading white-label payment solutions, ensuring the highest data security standards.
FAQ
What does PCI compliant mean?
PCI compliance means following the Payment Card Industry Data Security Standard, a set of technical and operational security requirements for protecting payment card data. Businesses, PSPs, payment gateways, and service providers that handle cardholder data need to follow PCI DSS requirements based on their role in the payment flow.
Who needs to be PCI DSS compliant?
Any organization that stores, processes, transmits, or can affect the security of cardholder data needs to comply with PCI DSS. This includes merchants, payment gateways, PSPs, processors, acquirers, issuers, and third-party service providers involved in payment processing. Even if a merchant uses a PCI DSS compliant payment gateway, the merchant may still have PCI DSS responsibilities depending on how its checkout, website, systems, and providers are set up.
What are the 12 PCI DSS requirements?
The 12 PCI DSS requirements cover network security controls, secure system configurations, protection of stored account data, encryption of transmitted cardholder data, malware protection, secure software development, access control, user authentication, physical access restrictions, logging and monitoring, regular security testing, and information security policies. Together, they define how organizations should protect cardholder data across payment systems and business processes.
How long does PCI DSS certification take?
PCI DSS certification can take from a few weeks to several months, depending on the organization’s size, payment setup, current security maturity, and required validation type. A smaller merchant using a hosted PCI DSS compliant payment page may complete a self-assessment faster, while a payment gateway, PSP, or larger service provider usually needs a more detailed assessment with a Qualified Security Assessor. If remediation is needed, the timeline can extend until systems, policies, documentation, and security controls are ready for validation.
