PCI is one of the most important standards modern businesses must adhere to, and the consequences of non-compliance can be severe. But what exactly do PCI DSS fines entail? How much do they cost businesses, and how can you avoid them?
In this guide, we’ll explore PCI DSS non-compliance fines and what they mean for businesses that handle card data. We’ll also discuss some of the other consequences businesses may suffer for not complying with relevant standards.
What Is the Penalty For Violating PCI DSS?
PCI DSS fines are monetary penalties incurred by violating PCI standards. While specific amounts vary, businesses can expect to pay anywhere from a few thousand to up to $500,000 for non-compliance.
Fine Ranges By Business Size
Fines for small to medium-sized businesses can range from $5,000 to $100,000 per month. Large businesses that process millions of transactions each month can expect to pay even more. Over time, these fines can really pile up, which is why it’s important to pay them as soon as possible.
Factors That Influence Fine Amounts
There are several factors that determine the amount non-compliant businesses pay. Here’s a look at some of them.
Nature and Extent of the Violation
Unsurprisingly, larger, more extreme violations result in harsher penalties. A minor oversight in documentation management will likely incur a lower fine. Conversely, a major data breach that exposes millions of cards to nefarious parties can result in maximum penalties. Breaches that involve particularly sensitive data are punished severely.
In one famous example, Equifax paid a $425 million settlement for exposing the data of over 140 million cardholders. While this is an extreme case, it just goes to show how costly these fines can be for companies handling large numbers of cards.
Duration of Non-Compliance
The longer you fail to comply, the more you’ll pay in fines. Organizations that are found to have been non-compliant for an extended period of time often face incredibly steep fines. Such prolonged non-compliance indicates a lack of diligence or awareness in maintaining security standards, which heightens the risk of data breaches.
Compliance History
Companies that have previously violated PCI standards typically incur higher penalties than first-time offenders. Repeat offenses suggest a pattern of non-compliance and a disregard for security. Fines are escalated in such cases to reflect the seriousness of recurring non-compliance and to compel the organization to take action.
Impact on Consumers
The actual or potential impact of a violation is also taken into consideration when fining non-compliant businesses. If a breach leads to significant financial loss or identity theft, organizations can generally expect to pay through the roof.
Remediation Efforts
Governing bodies look to see whether or not offending businesses take the appropriate steps to correct their mistakes. For example, a company might implement a cybersecurity risk management program, or improve upon their existing strategy. Other remediation efforts could involve contacting affected customers and offering a credit monitoring service.
Cooperation With Authorities
How well an organization cooperates with the relevant authorities has a large bearing on the total amount it’ll pay in fines. Transparent and proactive collaboration can lead to reduced fines, as it demonstrates a commitment to resolving the issues at hand. However, entities that are combative may face additional challenges with remediation, which can lead to higher costs.
Industry Sector
Industry also plays a role in fine determination. Certain sectors, such as finance and healthcare, are more heavily regulated due to the sensitive nature of the data they handle. Businesses in these industries face stricter penalties and higher fines for non-compliance.
Other PCI DSS Non-Compliance Penalties
Though worrisome, fines aren’t the only consequence of running afoul PCI DSS standards. Here are a few other reasons to ensure your business is compliant with all relevant PCI regulations.
Reputational Damage
Benjamin Franklin was famously quoted as saying, “It takes many good deeds to build a good reputation, and only one bad one to lose it.” Non-compliance can prove catastrophic for your brand’s public image, no matter how hard you’ve worked to polish it.
Operational Disruptions
Violations of PCI DSS can cause major operational disruptions. When a breach occurs, affected companies must dedicate substantial resources to investigate the incident, contain the breach, and implement corrective actions. This can impede business as usual.
Decreased Employee Morale
PCI DSS non-compliance can bring about big changes to an organization, some of which may impact employee morale. For example, if your business is required to perform additional tasks to get up to standard, employees can become overburdened.
How to Avoid PCI DSS Non-Compliance Fines and Penalties
PCI DSS fines can be a nightmare for companies. Thankfully, with the right planning and training, you can remain compliant and avoid costly PCI DSS non-compliance penalties. Here are some steps businesses should take.
Conduct Regular Risk Assessments
Ongoing risk assessments are key to spotting issues before they spiral out of control. By systematically evaluating potential risks, companies can proactively address security gaps and ensure compliance with PCI standards, which is one of the best ways to avoid fines.
Implement Strong Access Control Measures
Access control measures prevent unauthorized parties from gaining access to critical data, and they are vital for cybersecurity. Businesses that use access control tools are less likely to enter a state of non-compliance than those that do not. Popular access control measures include the use of multi-factor authentication (MFA) and access logs.
Encrypt Sensitive Data
Encrypting sensitive data in transit and at rest is a key element of PCI compliance. Organizations can avoid paying heavy fines by encrypting cardholder data, ensuring that, even if it is compromised, the data remains unreadable without the appropriate decryption keys.
Provide Employee Training
The importance of employee compliance training cannot be overstated. By educating employees on compliance best practices, you can create a culture of compliance and make sure everyone is onboard with the appropriate defense measures. This can really pay off in the end when you don’t have to pay PCI DSS non-compliance fines or penalties.
Avoid PCI DSS Fines With Compyl
Avoiding PCI DSS fines can be challenging, especially when juggling multiple complex standards. Our team at Compyl understands that it’s a difficult process, so we’re here to make it easier for you. Get in touch with us today to see how we can help you streamline PCI compliance and avoid paying fines.
