Are You PCI Compliant?

5/21/2009 by Jack Burnett

I am helping a marine supplies company expand their customer base and increase consumer sales with a new eCommerce website. Consumer sales means credit card payment processing. Credit cards mean PCI compliance.

Some people think that PCI compliance is the big credit card companies attempt to push the responsibility down to the merchants, so they don't have to spend money now to upgrade their infrastructure from the 1980's. While there may be some truth in that, a merchant is responsible for protecting its customers' credit card information when they purchase their products. If they want to offer VISA, MasterCard and American Express credit card payments, then they have to follow the rules.

Wikipedia says the Payment Card Industry Data Security Standard is a worldwide information security standard created to help organizations that process card payments prevent credit card fraud. The standard applies to all organizations which hold, process, or pass cardholder information.

PCI compliance means that merchants and eCommerce solutions must follow the standards or be liable for credit card fraud. There are 6 core principles and 12 requirements to follow. The major business areas to consider for a merchant are:

  • Merchant's facility, order processing and internal financial/ERP systems
  • eCommerce website
  • Credit card processing gateway
  • Processor
  • Merchant Bank

I recommend Authorize.net and PayPay Payflow Pro credit card processing gateways in our eCommerce websites, because they are rock-solid PCI compliant. A merchant chooses their Merchant bank and processor company, and best practices dictate due dilligence to ensure PCI compliance. This happened to be a concern for the marine supplies company, because they chose to use Heartland as the processor. Heartland was removed from the PCI-compliant list in March because of data breaches (see eCommerce Times article here), so it was important to ensure they were back on the PCI-compliant list; they were reinstated earlier this month.

TwinEngines eCommerce solutions do not store full credit card information in the website database. Very limited, partial information is stored only for customer service. The shopping cart transaction is secure with SSL, and does not display full credit card numbers anywhere after the card information is taken. The administrative engine used in eCommerce websites, connects directly to the credit card processing gateway to authorize payments at check out and to capture the charge at shipment.

Some merchants use the eCommerce website administration tool to process phone orders, ensuring PCI compliance. The eCommerce website holds the credit card gateway transaction numbers to allow the merchant to work with the transactions securely in the credit card gateway's virtual terminal. This is necessary for activities such as voiding an authorization or crediting a card when needed.

If you are selling online, the first place to start is the PCI DSS questionaire found at the PCI Security Standards Council. You'll also find the 6 core principles and 12 requirements established by PCI SSC.  After you do your homework, make sure your eCommerce website will be in compliance when selecting a partner to help you implement commerce on the web.

1 comment(s) for “Are You PCI Compliant?”

  1. pci dss Says:
      This information is very helpful. It really helps me understand more about PCI. Keep posting. Will certainly try doing that myself. Your post/article really helped. Thanks a lot.

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