Any SaaS company that offers financial service needs the ability to collect customers’ cardholder data to execute payments. 

To that end, these businesses must ensure that that data is securely processed and stored. 

Enter PCI. 

The Payment Card Industry Data Security Standards (PCI DSS) is a robust framework set up by leading card associations such as American Express and Visa which ensures that payment data is securely processed. Businesses comply with PCI standards, as it applies to all organizations that transmit any form of cardholder data. Failure to comply can not only lead to fines and legal recourse but can also cause data breaches—not to mention irrevocable reputational damage. Non-compliance can also increase operational costs due to more frequent audits, further underscoring the importance of adhering to PCI standards. 

For organizations early in their PCI compliance journey, there are a range of concerns they may have with little visibility into mitigating them. In this article, we’ll look at the 9 most common concerns regarding PCI compliance, and provide guidance on how to start addressing them.

1. Data Encryption

SaaS companies must confirm that cardholder data is encrypted not only while in transit, but also when at rest. Encryption is of particular importance should you be transmitting data over a public network. While it can be challenging to keep up with evolving encryption standards and regulations, SaaS companies can ensure PCI compliance by using encryption protocols like Secure Sockets Layer (SSL) for data in transit, and by using encryption algorithms and keys for data at rest, particularly if it’s stored physically (such as on a server). Other potential solutions include strong cryptography and AES encryption. Of course, it’s important to regularly test, assess, and update protocols to stay ahead of nefarious players. 

2. Securing Cardholder Data

Perhaps one of the biggest concerns for SaaS companies is how to securely store and protect the data of their cardholders. Most important is that this data should never be stored on paper; rather, organizations should develop a strategy to minimize data retention in general. The data should only be stored on software and hardware that meet PCI standards. To further secure this data, SaaS businesses should use tokenization, in particular for credit card numbers. Despite individuals conflating encryption with tokenization, note that only the latter is irreversible. By using tokenization, businesses can more securely store payment information and process transactions, all while minimizing visibility into cardholder data.  

3. Regular Security Testing

Meeting PCI compliance is not a one-off procedure: it requires continual evaluations of your organization’s security setup. What worked six months ago may no longer be adequate today, which is why SaaS companies must partner with a provider that runs regular vulnerability scans, penetration tests, and security check-ups to ensure continual PCI compliance. Per PCI DSS, entities are required to perform these scans at least once per three months to ensure that no vulnerabilities can easily be exploited.

4. Managing Third-Party Vendors

It’s not unusual for SaaS organizations will partner with third-party vendors, particularly if they utilize payment facilitation, payment orchestration, or embedded payment services. However, it’s not enough for only your business to meet the security standards of PCI DSS: all third-party vendors must comply with PCI standards should they store, process, or transmit any cardholder data. As such, make sure all vendors are rigorously vetted so you can build and maintain a secure network, even with third-party vendors.

5. Maintaining an Information Security Policy

An information security policy clearly defines security objectives, protocols, contingency plans, access controls, and invaluable information relating to your business’ PCI compliance. However, it’s not always kept up-to-date and easily accessible. This can be counteracted through periodic reviews of all policies to make sure they accurately and comprehensively reflect the current situation, and that all relevant stakeholders know where to access the policy.

6. Employee Training

Successfully guaranteeing PCI compliance involves an “all hands on deck” mentality; it should not be owned solely by the Compliance department. Regular training programs, awareness initiatives, and refreshers should be offered to all relevant colleagues to keep them abreast of the latest developments. Check to see that all trainings are tailored to the level of knowledge of the individual, and consider gamifying certain aspects to increase overall engagement.

7. Network Security

SaaS companies have private data that unauthorized users shouldn’t have access to, which requires a strong defense to minimize the possibility of a data breach. PCI DSS compliance requires securing your network against unauthorized access, which can be done through implementing firewalls that filter outgoing and incoming traffic. Compliant configurations will use both hardware and software firewalls, as well as VPNs.  Other measures to consider utilizing include intrusion detection systems and secure configurations. 

8. Access Control Measures

While it’s inevitable that some employees in your organization will need access to sensitive customer data, it’s critical to ensure that it’s restricted to only those who need it. This requires having full visibility over access controls and monitoring. To ensure it can only be accessed by authorized personnel, implement role-based access control to those whose function requires access. Then, regularly monitor access logs and review access privileges periodically to make sure all is functioning as it should. It can further help to have an access control policy formalized in writing to minimize confusion on these measures. Finally, don’t forget to assign a unique ID to each employee (whether they have access or not) so all digital movement can be traced back if needed.

9. Incident Response Plan

Despite best-laid plans, there always remains the possibility of a cybersecurity vulnerability being exploited or a data breach taking place. Should worse come to worst, it’s a PCI DSS requirement to have an incident response plan in place, so that all involved employees understand how to limit data exposure, properly notify any acquirers or other entities, and manage third-party contracts. All organizations that handle cardholder data should therefore develop and test a detailed incident response plan and ensure that all employees can easily access it. Check it yearly so that all processes function as planned and everything is up-to-date to minimize data loss and preserve evidence. 

Final Words

Understanding and implementing PCI DSS standards is a complex, constantly evolving field, but is vital to adhere to them so all payment data is securely processed throughout the payment lifecycle. It’s therefore crucial that SaaS organizations stay informed of the latest cybersecurity threats and regularly update their security and data measures accordingly. But instead of rerouting a significant amount of your resources towards understanding and ensuring compliance, SaaS businesses can simply partner with a trustworthy financial service provider like Preczn.

As a PCI DSS Level 1 Service Provider, we take data security very seriously. Just some of our data security commitments include regular backups, secure authentication, regular security audits, data encryption, and vulnerability management, all with the aim of protecting our customers’ data and keeping our systems secure--so you don’t have to worry about it.

If you're looking for a trusted integrated financial services provider that can work for your SaaS organization beyond payments while ensuring 100% PCI compliance, contact Preczn today to learn more about our FinTech operating system.