Payments are traditionally considered to be a high-risk sphere. This is due to the complexity of the procedures and tools used, the rapid development of new technologies, and the threat of fraudulent transactions. These risks are dangerous not only for the service providers and their users but also for the economy as a whole. That’s why the payment risks must be identified, monitored, evaluated, and managed. Read ahead for an up-to-date overview of the payment risks and compliance!
Payment system risks are hazards specific to the structures and operations of payment systems, as well as other entities that participate in the transactions. The following risks may arise in payment systems:
This classification is used by most banks in Europe and the United States. The probability of such hazards is never equal to zero, yet there are ways of minimizing it.
As much as it is useful to be ready to resolve errors, there are ways of mitigating the risk of them occurring. There are a number of international guidelines for minimizing fraud and preventing the risks most payment systems face that are recommended for use in internal regulation. These principles imply the payment system having:
Following these guidelines can provide your business’s payment system advanced protection from fraud and other types of risks. However, the first thing a business owner should take care of in terms of payment risk management is PCI DSS compliance.
A merchant of any size accepting card payments should be compliant with PCI Security Council standards - read ahead for all the details.
What Is PCI DSS?
The Payment Card Industry Data Security Standard (PCI DSS) emerged in 2004. It is governed by PCI SSC and was developed by five major international payment systems:
Nowadays, it is the golden standard aiming to prevent data breaches during debit and credit card transactions that have a negative effect on financial institutions and their clients. PCI SSC doesn’t have the legal authority to enforce compliance with the scheme, but following the standard is the IPS’ requirement for all businesses. Besides, a PCI DSS certification is considered to be the best way of securing sensitive data that helps businesses build long-lasting relationships with their customers.
Go ahead and check our comprehensive guide for more information on PCI DSS requirements.
Which PCI DSS Version Is the Current Standard?
Currently, the PCI DSS 3.2.1 is the PCI standard all businesses must comply with. PCI DSS 4.0 was supposed to be released by now, yet its launching date was delayed until the end of 2021. This delay was caused by the PCI council’s decision to extend the Request For Comments (RFC) process and collect additional feedback on the updated standard and its documentation.
While the core twelve guidelines shall remain unchanged, the upcoming renewed PCI version will adjust the standard to the latest technological updates.
The PCI SSC has set four goals for the release of version 4.0:
How to Prepare for PCI DSS v4.0?
As of now, staying compliant with PCI DSS 3.2.1 is enough to be prepared for v4.0.
Thus, the businesses have to continue filling up the Self-Assessment Questionnaire (SAQ). Another action to validate compliance is to engage a Qualified Security Assessor (QSA) to carry out a Report on Compliance (RoC) for your business.
Also, to be well-prepared for the moment when the new standard is introduced, stick to the following recommendations:
Complying with PCI DSS requirements and following the tips we provided above will result in your business having a well-secured payment system. But how to keep all these factors in mind? Fortunately, you don’t have to take care of every little thing yourself - Payneteasy has got you covered!
At Payneteasy, we provide our clients with effective risk- and dispute-management tools. Use our tech solutions to achieve high sales with minimum security hazards without any intermediaries. Here’s what we offer:
Our powerful risk and fraud management system based on machine learning technologies will enable your organization to manage risks, save money, and keep up an impeccable reputation among the consumers.