There's been talk of non-PCI compliant fines since the standards were launched by the PCI Security Standards Council (PCI SSC) in 2006. PCI Compliance is very important and many businesses have suffered the consequences for not staying in compliance.
We've seen companies suffering from a breach, like TJX Corporation in 2007, pay out bucket loads of money in fines, law suits and replacement credit cards. The cost of the TXJ breach has been estimated in excess of $1 billion. But for years now, fines for non-compliance - as long as you don't suffer a breach - have seemed to be a relatively faraway threat. Many companies may not even think that they need to be in compliance or that it is not a big deal.
That reality is quickly changing. The industry has seen a growing number of non compliant PCI fines appearing on merchants' monthly bills from their acquirers. The fees vary depending on the volume of transactions. The average monthly non-PCI compliance fee we've seen falls between $20 - $25. We've seen a whopping $1,000 non-compliant monthly surcharge. Ouch.
Payment brands have the ability to fine acquiring banks up to $100,000 per month for non-compliance violations. These fees are then passed down by banks to non-compliant merchants. The potential costs associated with non-PCI compliance don't just end with fines, credit card replacement and audit fees: costs can also come in the form of loss of business and revenue, brand damage, increased transaction rates or banks terminating their relationship with a merchant. Such penalties can be catastrophic to a small business.
The time involved in being PCI compliant and secure may seem excessive at first, but when compared with the potential fines and security breaches that can occur, the process is actually quite reasonable. If credit card processing is going to be a regular aspect of your business, the investment is more than worthwhile. So don't take PCI Compliance lightly.
We've seen companies suffering from a breach, like TJX Corporation in 2007, pay out bucket loads of money in fines, law suits and replacement credit cards. The cost of the TXJ breach has been estimated in excess of $1 billion. But for years now, fines for non-compliance - as long as you don't suffer a breach - have seemed to be a relatively faraway threat. Many companies may not even think that they need to be in compliance or that it is not a big deal.
That reality is quickly changing. The industry has seen a growing number of non compliant PCI fines appearing on merchants' monthly bills from their acquirers. The fees vary depending on the volume of transactions. The average monthly non-PCI compliance fee we've seen falls between $20 - $25. We've seen a whopping $1,000 non-compliant monthly surcharge. Ouch.
Payment brands have the ability to fine acquiring banks up to $100,000 per month for non-compliance violations. These fees are then passed down by banks to non-compliant merchants. The potential costs associated with non-PCI compliance don't just end with fines, credit card replacement and audit fees: costs can also come in the form of loss of business and revenue, brand damage, increased transaction rates or banks terminating their relationship with a merchant. Such penalties can be catastrophic to a small business.
The time involved in being PCI compliant and secure may seem excessive at first, but when compared with the potential fines and security breaches that can occur, the process is actually quite reasonable. If credit card processing is going to be a regular aspect of your business, the investment is more than worthwhile. So don't take PCI Compliance lightly.
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