PCI Data Security Standard (PCI DSS)
The PCI DSS applies to all entities that store, process, and/or transmit cardholder data. It covers technical
and ... [Show More] operational system components included in or connected to cardholder data. If you accept or process payment cards, PCI DSS applies to you.
Sensitive Authentication Data
Merchants, service providers, and other
entities involved with payment card processing must never store sensitive authentication data after
authorization. This includes the 3- or 4- digit security code printed on the front or back of a card (CVD), the data stored on a card's magnetic stripe or chip (also called "Full Track Data") - and personal identification numbers (PIN) entered by the cardholder.
Card Verification Data Codes (CVD)
3 or 4 digit code that further authenticates a not-present cardholder
Visa-CVV2
MC- CVC2
Discover- CVD
JCB-CAV2
AmEx- CID
Requirement 1
Install and maintain a firewall configuration to protect cardholder data
Network devices in scope for Requirement 1
Firewalls and Routers- Routers connect traffic between networks, Firewalls control the traffic between networks and within internal network
QIR Qualified Integrators & Resellers
Qualified Integrators & Resellers- authorized by the SSC to implement, configure and/or support PA-DSS payment applications. Visa requires all level 4 merchants use QIRs for POS application and terminal installation and servicing
Compensating Controls
An alternative control, put in place to satisfy the requirement for a security measure that is deemed too difficult or impractical to implement at the present time.
Permitted reasons for using Compensating Controls
Organizations needing an alternative to security requirements that could not be met due to legitimate technological OR documented business constraints, but has sufficiently mitigated the risk associated with the requirement through implementation of other compensating controls
Examples of Compensating Controls
(i) Segregation of Duties (SOD) and (ii) Encryption
Compensating Controls must:
1) Meet the intent and rigor of the original stated requirement;
2) Provide a similar level of defense as the original stated requirement;
3) Be "above and beyond" other PCI DSS requirements (not simply in compliance with other PCI DSS requirements); and
4) Be commensurate with the additional risk imposed by not adhering to the original stated requirement.
Compensating Controls Worksheet
1) Constraint; 2) Objective; 3) Identified Risk; 4) Define Compensating Control; 5)Validate Controls; 6) Maintenance (COIDVM)
Card Data that cannot be stored by Merchants, Service providers after authorization
Sensitive Authentication Data. i) 3- or 4- digit security code printed on the front or back of a card, ii) data stored on a card's magnetic stripe or chip (also called "Full Track Data"), and iii) personal identification
numbers (PIN) entered by the cardholder
Card Data that MAY be stored
i) cardholder name, ii) service code (identifies industry iii) Personal Account Number (PAN)
iv) expiration date may be stored.
Network Segmentation
The process of isolating the cardholder data environment from the remainder of an entity's network
Not a requirement but strongly recommended.
Report on Compliance (ROC)
Prepared at the time of the assessment of PCI compliance and comprehensively provides details about the assessment approach and compliance standing against each PCI DSS requirement
What is included in the Report on Compliance (ROC)?
ROC includes (1) Executive summary, (2) description of scope of work and approach taken, (3) details about reviewed environment, (4) contact information and report date, (5) quarterly scan results and (6) findings and observations.
Steps to take for a PCI Assessment (hint: SARA's Remediation)
1. Scope - determine which system components and networks are in scope for PCI DSS
2. Assess - examine the compliance of system components in scope following the testing
procedures for each PCI DSS requirement
3. Report - assessor and/or entity completes required documentation (e.g. Self-Assessment
Questionnaire (SAQ) or Report on Compliance (ROC)), including documentation of all
compensating controls
4. Attest - complete the appropriate Attestation of Compliance (AOC)
5. Submit - submit the SAQ, ROC, AOC and other requested supporting documentation such as
ASV scan reports to the acquirer (for merchants) or to the payment brand/requestor (for service
providers)
6. Remediate - if required, perform remediation to address requirements that are not in place, and
Who can complete a Self Assessment Questionnaire (SAQ)?
i) the organization themselves, or ii) by a third party (e.g. IBM)
Who MUST complete a Report on Compliance?
It MUST be completed by an approved Qualified Security Assessor (QSA) through the PCI Security Standards Council
What is included in PCI Scope Review?
1) Document the cardholder data flow; 2)develop a network diagram that documents all of the firewalls, routers, switches, access points, servers and other network devices and how they are architected; 3) scan your entire network to confirm that cardholder data is not stored anywhere outside of the CDE (Generally, you need to identify all locations and flows and ensure that they are included in scope.)
Steps to reduce scope of Cardholder Data Environment ("CDE")
1. Consolidation: Identifying and eliminating redundant data sets and consolidating applications and information storage can reduce scope.
2.Centralization:Encrypted data stored in a highly secure on-site central data vault. The payment card numbers are replaced with tokens in other applications or databases. Since cardholder data is only stored in one central location, PCI DSS Scope is minimized
3.End-To-End Encryption (E2EE) or Point-To-Point Encryption (P2PE):Ensures that card numbers are encrypted from first card swipe at the point-of-sale (POS), and while in transit all the way to the payment processor eliminating most PCI requirements.
4.Outsourcing: Outsourcing all or some of your payment card processing capabilities to a PCI DSS compliant service provider can reduce PCI scope. This is especially relevant to companies conducting eCommerce transactions only.
5.Tokenization:Stores card numbers and other sensitive data such as social security numbers in an off-site highly secure data vault. The payment card numbers are replaced with tokens in all other databases and applications. Not storing cardholder data anywhere greatly simplifies the scope of PCI Requirement.
Who makes up the PCI Security Standards Council?
1) Five payment brands (Am Ex, JCB, Visa, MC, Discover), and 2) Payment Organizations (merchants, banks, processors, hardware and software developers, point of sale vendors).
Card Processing Authorization- who does the merchant request and receive authorization from to complete the purchase? What is provided to the merchant?
The Issuer provides an Authorization Code to the merchant
Card Processing Clearing- who shares what?
Acquirer and Issuer exchange payment information- usually 24 hr period in U.S.
Card Processing Settlement- who does acquirer pay? What does Issuer do?
1) Acquirer pays merchant and 2) Issuer bills cardholder (i.e. cardholder is charged)
-Reconciliation takes place, issuer records, posts the transaction which appears on the cardholder's monthly statement
What are the 3 steps in Payment Card Processing?
1) Authorization 2) Clearing 3) Settlement
Functions associated with Acquirers
Authorize, Clear and Settle to merchant
Who ultimately approves the purchase?
Issuer
Which step does the Payment Brand Network provide complete reconciliation to the merchant bank?
Clearing
How long is PCIP qualification valid?
3 years
Which takes precedence...local laws or PCI Standards?
Local Laws
Payment Brand Network
The cc brands (e.g. Am Ex, Discover).
Discover and Amex are BOTH the card network and issuing bank- having their own financial institutions issue the cc's to consumers
Visa and MasterCard are card networks only and do NOT issue cc's- they have third party issuing banks do it for them.
What do Acquirer's do for their merchants?
Authorize--Clear--Settle for their merchant
Who ultimately approves the purchase?
Issuer
In which step does the Payment Brand Network provide complete reconciliation to the merchant bank?
Clearing
(PA-DSS) Payment Application Data Security Standard
Third party payment applications that authorize and settle
Examples- POS, Shopping Cart
Role of Payment Brand Network
1) Develop and Enforce Compliance Programs, 2) Accept validation documentation from approved QSA, PA-QSA, and ASV companies, and 3) endorse the QSA, PA-QSA and ASV company qualification criteria
Point to Point Encryption (P2PE) Requirements
1-Secure encryption of payment card data at Point of Interaction (POI)
2-Validated apps at the POI
3-Secure environment of encryption and decryption devices
4-Manage decryption environment and ALL decrypted account data
5-Use source encryption technologies and cryptographic key elements-like key generation, distribution, loading and injection, administration and usage
May reduce PCI-DSS scope for Merchant
-Geared toward provider of point to point solution (e.g. Processor, Acquirer, payment gateway (e.g. PayPal)
(PA-DSS) Payment Application DSS
Most payment application (PA-DSS) requirements are equivalent of PCI-DSS
-Geared toward the Application providers [Show Less]
