Evolving regulatory standards are a common part of business due diligence, with companies around the globe having to stay on top of the compliance initiatives related to their industry. As governments and sectors become more aware of digital threats or potential issues with their internal systems, they release new regulations to help keep as many businesses as possible safe from threats.
In the card payment sector, the Payment Card Industry Data Security Standard (PCI DSS) has been a fundamental regulatory compliance structure since late 2004. In more recent years, the latest iteration, PCI DSS 4.0, has meant that companies around the globe must reassess their current architecture and ensure they are compliant with modern security standards.
In this article, we’ll explore what the PCI DSS 4.0 is, touch on the leading challenges that businesses encounter when attempting to comply, and outline how businesses can manage PCI DSS compliance going forward.
What is PCI DSS 4.0?
The Payment Card Industry Data Security Standard (PCI DSS) 4.0 is the latest iteration of a global data security standard that every merchant across the globe that accepts card payments must comply with. These regulatory guidelines prioritize user safety and aim to make processing card payments as easy, secure, and error-free as possible.
While the PCI DSS 4.0 is still in its transitionary period, giving companies time to adapt, it’s a good idea to comply as early as possible. Any merchant that is found to be in non-compliance with this standard after the March 2025 cut-off point could instantly have their status as a merchant revoked. This would mean that the company could no longer process card payments, effectively disabling the most common form of payment for the entire organization.
Less severe punishments could still have significant consequences for a business. For example, non-compliance with the PCI DSS 4.0 could mean that card businesses can increase their transaction fees for your business. At present, the average merchant processing fee can range between 1.5% and 3.5%. Yet, this figure could significantly increase for those in non-compliance, leading to major costs and reduced profit margins for your company.
In order to avoid the negative repercussions of non-compliance and ensure that you are following the best industry practices for card transactions, we urge you to comply with PCI DSS 4.0 as soon as possible. If you are an established company that already has experience with PCI DSS, the additional regulations that 4.0 includes will not be a significant demand.
Challenges of PCI DSS Compliance
The largest changes in the PCI DSS 4.0 mainly relate to the advanced protection of financial data through enhanced cybersecurity practices. Businesses must ensure that their staff are trained to spot phishing attempts, conduct regular assessments of their security posture and account privilege levels, and include protective steps like MFA on all user accounts.
Yet, beyond the exact changes that a business has to make, the main challenges of PCI DSS compliance are as follows:
● Determining the Scope: The first step in compliance with the PCI DSS 4.0 is to identify the scope of technologies, processes, people, and systems that must fall under this regulation. Businesses will first have to conduct expansive attack surface monitoring and profiling to gauge what they have to protect under this new standard. There are over 300 individual requirements for the PCI DSS, so understanding what rules apply to which systems and which technologies you are actually using is a vital initial step.
● Aligning with Technical Requirements: One of the biggest changes that the 4.0 iteration of the PCI DSS has included is the significant increase in the minimum number of cybersecurity technologies that businesses have to employ. From firewalls and data access controls to encryption and comprehensive cybersecurity protection, businesses must scale their cybersecurity posture from all angles.
● Altering Existing Infrastructure: Some businesses may have legacy infrastructure that does not allow them to integrate new technologies that the PCI DSS requires. For example, the PCI DSS 4.0 requires that all user accounts utilize MFA to decrease the access that compromised accounts give to hackers. In legacy systems, introducing MFA may require businesses to completely change their underlying infrastructure.
● Facilitating Continuous Monitoring: PCI DSS 4.0 compliance is not a one-and-done system. On the contrary, once you have the recommended systems and protections in place, you must then regularly conduct risk assessments and bi-annual reviews of user accounts to ensure that you remain in compliance for the foreseeable future.
Due to these challenges, many businesses will be unsure whether or not they are fully compliant with this new standard.
How to Manage PCI DSS 4.0 Compliance
PCI DSS 4.0 compliance is essential for any business that intends to accept and receive card payments. Considering that cash payments will account for only 8% of transactions by 2027, almost every business should ensure they have a comprehensive overview of the PCI DSS and its implications for their company.
While in-house experts may be able to guide your business through the process of complying with PCI DSS 4.0 and then documenting your compliance, there are other methods of regulation available to you. Many businesses seek external help from third-party cybersecurity companies that have expertise in helping companies comply.
If in doubt, it’s always a more effective option to turn to industry professionals to help with complex regulatory compliance standards, rather than suffer the consequences of accidental non-compliance.
