PCI DSS Merchant Services

💳 PCI DSS Compliance & Merchant Services

1. PCI DSS Compliance Framework

12 Core Requirements:

• Requirement 1: Install and maintain network security controls
• Requirement 2: Apply secure configurations to all system components
• Requirement 3: Protect stored cardholder data
• Requirement 4: Protect cardholder data with strong cryptography during transmission
• Requirement 5: Protect all systems and networks from malicious software
• Requirement 6: Develop and maintain secure systems and software
• Requirement 7: Restrict access to cardholder data by business need to know
• Requirement 8: Identify users and authenticate access to system components
• Requirement 9: Restrict physical access to cardholder data
• Requirement 10: Log and monitor all access to network resources and cardholder data
• Requirement 11: Test security of systems and networks regularly
• Requirement 12: Support information security with organizational policies and programs

2. Merchant PCI Compliance Support

Merchant Level	Transaction Volume	Validation Required	SMRT Support Services
Level 1	>6M transactions/year	Annual on-site assessment	QSA coordination, remediation support
Level 2	1M-6M transactions/year	Annual SAQ + quarterly scan	SAQ assistance, vulnerability scanning
Level 3	20K-1M e-commerce/year	Annual SAQ + quarterly scan	Compliance tools, security training
Level 4	<20K transactions/year	Annual SAQ	SAQ completion assistance

3. POS Equipment Security

Point of Sale Device Management:

• PTS-POI Certification: All terminals meet Payment Card Industry Point-to-Point Encryption standards
• Tamper Detection: Hardware and software tamper-evident security features
• Secure Key Injection: Cryptographic key loading in secure facilities
• Remote Key Management: Over-the-air key updates and certificate management
• Device Authentication: Mutual authentication between devices and payment systems

Terminal Security Features:

• End-to-End Encryption: Point-to-point encryption from card reader to processor
• PIN Security: Secure PIN entry and processing with TDES/AES encryption
• EMV Compliance: Chip card processing with dynamic authentication
• Contactless Security: NFC and mobile wallet security protocols
• Application Security: Secure boot process and signed application validation

4. Network Security Architecture

Segmentation & Access Controls:

• Network Segmentation: Cardholder data environment (CDE) isolated from other networks
• DMZ Implementation: Demilitarized zones for internet-facing applications
• Firewall Configuration: Application-layer filtering and intrusion prevention
• VPN Security: Multi-factor authentication for remote access
• Wireless Security: WPA3 encryption and enterprise authentication

Monitoring & Intrusion Detection:

• 24/7 SOC Monitoring: Security Operations Center with real-time threat detection
• SIEM Integration: Security Information and Event Management correlation
• Behavioral Analytics: Machine learning-based anomaly detection
• Forensic Capabilities: Digital forensics and incident response procedures

5. Merchant Onboarding & Risk Assessment

Due Diligence Process:

• Business Verification: Comprehensive merchant background checks and business validation
• Financial Review: Credit assessment and financial stability evaluation
• Risk Classification: Industry-based risk assessment and monitoring levels
• Compliance Validation: PCI DSS readiness assessment and gap analysis

High-Risk Industry Management:

• Enhanced Monitoring: Increased transaction monitoring and review procedures
• Reserve Requirements: Financial reserves and rolling reserve management
• Compliance Oversight: Additional PCI DSS validation and security requirements
• Chargeback Management: Proactive chargeback prevention and mitigation

6. Transaction Processing Security

Payment Processing Flow:

• Authorization: Real-time fraud screening and card validation
• Authentication: 3-D Secure and strong customer authentication
• Tokenization: Sensitive data replacement with secure tokens
• Settlement: Secure batch processing and fund settlement
• Reconciliation: Transaction matching and dispute management

Fraud Prevention & Detection:

• Machine Learning Models: AI-powered fraud detection and scoring
• Velocity Checking: Real-time transaction pattern analysis
• Geographic Filtering: Location-based transaction validation
• BIN Analysis: Bank Identification Number validation and risk assessment
• Device Fingerprinting: Unique device identification and tracking

7. Compliance Monitoring & Reporting

Continuous Compliance:

• Quarterly Scanning: Approved Scanning Vendor (ASV) vulnerability assessments
• Annual Assessments: Qualified Security Assessor (QSA) evaluations
• Penetration Testing: Regular security testing and vulnerability remediation
• Compliance Tracking: Merchant compliance status monitoring and reporting

Incident Response:

• Breach Response Plan: Comprehensive incident response procedures
• Forensic Investigation: PCI Forensic Investigator (PFI) engagement
• Notification Procedures: Card brand and regulatory notification processes
• Remediation Support: Security improvement and compliance restoration

8. ISO & Partner Compliance

Independent Sales Organization Support:

• ISO Registration: Assistance with card brand registration and compliance
• Agent Training: PCI DSS awareness and compliance training programs
• Portfolio Management: Merchant portfolio compliance monitoring
• Residual Protection: Compliance violation impact mitigation

Partner Requirements:

• Background Checks: Comprehensive ISO and agent background verification
• Compliance Training: Mandatory PCI DSS and security awareness training
• Ongoing Monitoring: Regular compliance assessments and portfolio reviews
• Violation Response: Immediate action procedures for compliance violations

PCI DSS Version: 4.0
Annual Assessment Date: March 2025
Certificate Expiration: March 31, 2026
Last Updated: January 20, 2025

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