Share this article
Your guide to eCommerce PCI compliance
With sites like Shopify and other tools that make it easier for anyone to set up their own online shop, new eCommerce sites are popping up every day as large-scale businesses and as side gigs for people who want to make a little extra cash. Whether your business is a budding side hustle or a thriving company, PCI compliance must be a top priority.
What is PCI compliance and what do you need to know about it as an eCommerce business? This guide digs into the key details you need to know to get started with your compliance process.
What is PCI compliance?
The term “PCI compliance” is actually referring to compliance to the PCI DSS - the Payment Card Industry Data Security Standard. This is a set of standards and requirements established by the PCI Security Standards Council to make sure that when customers use their credit cards (including online), businesses are taking steps to protect customers’ payment data.
Do eCommerce businesses need to comply with PCI standards?
Does your business need to be PCI compliant? For eCommerce, the answer is yes. Every business that collects, processes, stores, or transmits payment data is responsible for complying with PCI standards.
Within PCI compliance, there are two types of businesses that need to adhere to the standards: merchants and service providers. For purposes of eCommerce compliance, eCommerce businesses are merchants. Service providers include any other businesses that come into contact with your customers’ data, like your cloud provider.
Why is PCI compliance for eCommerce sites so important?
Unlike some privacy requirements like GDPR, PCI compliance is not a legal or regulatory requirement. It’s an industry-wide requirement that is enforced by major banks and credit card companies like Visa and MasterCard. These companies can leverage serious fines against your business if you don’t comply.
On top of avoiding those fines, you can expect that if you’re doing business with new vendors, partners, or other key stakeholders, they may ask if you’re PCI compliant. They want to know that they’re doing business with someone that does their due diligence, and lack of compliance can be a deal breaker for customers.
Finally, remember that PCI compliance isn’t just about marking off a checklist. The standards exist for a reason: to protect customer payment data. If you’re abiding by the PCI DSS, you’ll have a lower risk for data breaches (and the PR nightmares, loss of trust, and potential legal liabilities that come with them).
What standards do I need to meet to be PCI compliant as an eCommerce business?
To be broad, there are 12 requirements listed in the PCI DSS. These include:
- Maintain a firewall that protects customer data.
- Use secure passwords instead of vendor-supplied default passwords.
- Protect any stored cardholder data.
- Encrypt any customer data that you transmit over open, public networks.
- Maintain up-to-date antivirus software.
- Maintain secure systems and applications.
- Only allow access to cardholder data for those who truly need access.
- Assign a personal ID to each internal employee or contractor with computer access.
- Restrict the ability to physically access customer data.
- Track and monitor any access to cardholder data and network resources.
- Regularly test your security systems and processes to ensure that they’re working properly.
- Establish a company policy that addresses information security practices for employees and contractors.
Each of these 12 requirements has sub-requirements that are more specific about how you can meet the goals of the requirement. To be PCI compliant, you must adhere to all of these requirements and sub-requirements.
How do I document that I’m PCI compliant?
To officially document your PCI compliance, there are documents and reports you need to complete annually. Which documents need to be completed vary based on the size of your business and how you interact with cardholder data.
The PCI DSS defines four different levels of merchants. Level 1 merchants are those that process at least six million transactions per year. Level 2 merchants process between one million and six million transactions annually, level 3 merchants process 20,000 - one million transactions per year, and level 4 merchants process less than 20,000 transactions annually.
If you qualify as a level 2, 3, or 4 merchant, you’ll need to complete an annual self-assessment questionnaire that assesses your PCI compliance. You’ll submit this along with supporting documentation like third-party vulnerability scans and an Attestation of Compliance (AOC). A level 1 merchant, on the other hand, needs to have an annual assessment called a Report on Compliance (ROC) and AOC completed by a third-party Qualified Security Assessor (QSA) or Internal Security Assessor (ISA).
How Can I Make My PCI eCommerce Compliance Process Easier?
PCI compliance for your eCommerce business doesn’t need to be as cumbersome of a process as you might expect. You can make it far easier with PCI compliance software like Vanta. This type of tool continuously monitors your PCI environment and helps you gather evidence required to meet applicable PCI DSS controls. It provides you with a straightforward report of the requirements you already meet and the ones that require attention so you can cut to the chase and only focus on the necessary steps for PCI compliance.
This automated software can also continue to regularly monitor your system so that if you make changes that impact your compliance, you are alerted quickly and can solve the problem before it becomes a security or compliance issue. When you’ve reached compliance, the software’s reports can also streamline the external QSA assessment process, making Level 1 compliance far smoother and more efficient.
Begin your PCI compliance
Determine whether the GDPR applies to you and if so, if you are a processor or controller (or both)
Do you sell goods or service in the EU or UK?
Do you sell goods or services to EU businesses, consumers, or both?
Do you have employees in the EU or UK?
Do persons from the EU or UK visit your website?
Do you monitor the behavior of persons within the EU?
Create a Data Map by taking the following actions
Identify and document every system (i.e. database, application, or vendor) which stores or processes EU or UK based personally identifiable information (PII)
Document the retention periods for PII in each system
Determine whether you collect, store, or process “special categories” of data
Determine whether your Data Map meets the requirements for Records of Processing Activities (Art. 30)
Determine whether your Data Map includes the following information about processing activities carried out by vendors on your behalf
Determine your grounds for processing data
For each category of data and system/application have you determined the lawful basis for processing based on one of the following conditions?
Take inventory of current customer and vendor contracts to confirm new GDPR-required flow-down provisions are included
Review all customer contracts to determine that they have appropriate contract language (i.e. Data Protection Addendums with Standard Contractual Clauses)
Review all in-scope vendor contracts to determine that they have appropriate contract language (i.e. Data Protection Addendums with Standard Contractual Clauses)
Have you performed a risk assessment on vendors who are processing your PII?
Determine if you need to do a Data Protection Impact Assessment
Is your data processing taking into account the nature, scope, context, and purposes of the processing, likely to result in a high risk to the rights and freedoms of natural persons?
Review product and service design (including your website or app) to ensure privacy notice links, marketing consents, and other requirements are integrated
Does the notice to the data subject include the following items?
Does the notice also include the following items?
Do you have a mechanism for persons to change or withdraw consent?
Update internal privacy policies to comply with notification obligations
Update internal privacy notices for EU employees
Determine if you need to appoint a Data Protection Officer, and appoint one if needed
Have you determined whether or not you must designate a Data Protection Officer (DPO) based on one of the following conditions (Art. 37)?
If you export data from the EU, consider if you need a compliance mechanism to cover the data transfer, such as model clauses
If you transfer, store, or process data outside the EU or UK, have you identified your legal basis for the data transfer (note: most likely covered by the Standard Contractual Clauses)
Have you performed and documented a Transfer Impact Assessment (TIA)?
Confirm you are complying with other data subject rights (i.e. aside from notification)
Do you have a defined process for timely response to Data Subject Access Requests (DSAR) (i.e. requests for information, modification or deletion of PII)?
Are you able to provide the subject information in a concise, transparent, intelligible and easily accessible form, using clear and plain language?
Do you have a process for correcting or deleting data when requested?
Do you have an internal policy regarding a Compelled Disclosure from Law Enforcement?
Determine if you need to appoint an EU-based representative, and appoint one if needed
Have you appointed an EU Representative or determined that an EU Representative is not needed based on one of the following conditions?
If operating in more than one EU state, identify a lead Data Protection Authority (DPA)
Do you operate in more than one EU state?
If so, have you designated the Supervisory Authority of the main establishment to act as your Lead Supervisory Authority?
Implement Employee Trainings to Demonstrate Compliance with GDPR Principles and Data Subject Rights
Have you provided appropriate Security Awareness and Privacy training to your staff?
Update internal procedures and policies to ensure you can comply with data breach response requirements
Have you created and implemented an Incident Response Plan which included procedures for reporting a breach to EU and UK Data Subjects as well as appropriate Data Authorities?
Do breach reporting policies comply with all prescribed timelines and include all recipients i.e. authorities, controllers, and data subjects?
Implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk
Have you implemented encryption of PII at rest and in transit?
Have you implemented pseudonymization?
Have you implemented appropriate physical security controls?
Have you implemented information security policies and procedures?
Can you access EU or UK PII data in the clear?
Do your technical and organizational measure ensure that, by default, only personal data which are necessary for each specific purpose of the processing are processed?
Develop a roadmap for successful implementation of an ISMS and ISO 27001 certification
Implement Plan, Do, Check, Act (PDCA) process to recognize challenges and identify gaps for remediation
Consider ISO 27001 certification costs relative to org size and number of employees
Clearly define scope of work to plan certification time to completion
Select an ISO 27001 auditor
Set the scope of your organization’s ISMS
Decide which business areas are covered by the ISMS and which are out of scope
Consider additional security controls for business processes that are required to pass ISMS-protected information across the trust boundary
Inform stakeholders regarding scope of the ISMS
Establish an ISMS governing body
Build a governance team with management oversight
Incorporate key members of top management, e.g. senior leadership and executive management with responsibility for strategy and resource allocation
Conduct an inventory of information assets
Consider all assets where information is stored, processed, and accessible
- Record information assets: data and people
- Record physical assets: laptops, servers, and physical building locations
- Record intangible assets: intellectual property, brand, and reputation
Assign to each asset a classification and owner responsible for ensuring the asset is appropriately inventoried, classified, protected, and handled
Execute a risk assessment
Establish and document a risk-management framework to ensure consistency
Identify scenarios in which information, systems, or services could be compromised
Determine likelihood or frequency with which these scenarios could occur
Evaluate potential impact of each scenario on confidentiality, integrity, or availability of information, systems, and services
Rank risk scenarios based on overall risk to the organization’s objectives
Develop a risk register
Record and manage your organization’s risks
Summarize each identified risk
Indicate the impact and likelihood of each risk
Document a risk treatment plan
Design a response for each risk (Risk Treatment)
Assign an accountable owner to each identified risk
Assign risk mitigation activity owners
Establish target dates for completion of risk treatment activities
Complete the Statement of Applicability worksheet
Review 114 controls of Annex A of ISO 27001 standard
Select controls to address identified risks
Complete the Statement of Applicability listing all Annex A controls, justifying inclusion or exclusion of each control in the ISMS implementation
Continuously assess and manage risk
Build a framework for establishing, implementing, maintaining, and continually improving the ISMS
Include information or references to supporting documentation regarding:
- Information Security Objectives
- Leadership and Commitment
- Roles, Responsibilities, and Authorities
- Approach to Assessing and Treating Risk
- Control of Documented Information
- Internal Audit
- Management Review
- Corrective Action and Continual Improvement
- Policy Violations
Assemble required documents and records
Review ISO 27001 Required Documents and Records list
Customize policy templates with organization-specific policies, process, and language
Establish employee training and awareness programs
Conduct regular trainings to ensure awareness of new policies and procedures
Define expectations for personnel regarding their role in ISMS maintenance
Train personnel on common threats facing your organization and how to respond
Establish disciplinary or sanctions policies or processes for personnel found out of compliance with information security requirements
Perform an internal audit
Allocate internal resources with necessary competencies who are independent of ISMS development and maintenance, or engage an independent third party
Verify conformance with requirements from Annex A deemed applicable in your ISMS's Statement of Applicability
Share internal audit results, including nonconformities, with the ISMS governing body and senior management
Address identified issues before proceeding with the external audit
Undergo external audit of ISMS to obtain ISO 27001 certification
Engage an independent ISO 27001 auditor
Conduct Stage 1 Audit consisting of an extensive documentation review; obtain feedback regarding readiness to move to Stage 2 Audit
Conduct Stage 2 Audit consisting of tests performed on the ISMS to ensure proper design, implementation, and ongoing functionality; evaluate fairness, suitability, and effective implementation and operation of controls
Address any nonconformities
Ensure that all requirements of the ISO 27001 standard are being addressed
Ensure org is following processes that it has specified and documented
Ensure org is upholding contractual requirements with third parties
Address specific nonconformities identified by the ISO 27001 auditor
Receive auditor’s formal validation following resolution of nonconformities
Conduct regular management reviews
Plan reviews at least once per year; consider a quarterly review cycle
Ensure the ISMS and its objectives continue to remain appropriate and effective
Ensure that senior management remains informed
Ensure adjustments to address risks or deficiencies can be promptly implemented
Calendar ISO 27001 audit schedule and surveillance audit schedules
Perform a full ISO 27001 audit once every three years
Prepare to perform surveillance audits in the second and third years of the Certification Cycle
Consider streamlining ISO 27001 certification with automation
Transform manual data collection and observation processes into automated and continuous system monitoring
Identify and close any gaps in ISMS implementation in a timely manner
Download this checklist for easy referenceDownload Now
Determine which annual audits and assessments are required for your company
Perform a readiness assessment and evaluate your security against HIPAA requirements
Review the U.S. Dept of Health and Human Services Office for Civil Rights Audit Protocol
Conduct required HIPAA compliance audits and assessments
Perform and document ongoing technical and non-technical evaluations, internally or in partnership with a third-party security and compliance team like Vanta
Document your plans and put them into action
Document every step of building, implementing, and assessing your compliance program
Vanta’s automated compliance reporting can streamline planning and documentation
Appoint a security and compliance point person in your company
Designate an employee as your HIPAA Compliance Officer
Schedule annual HIPAA training for all employees
Distribute HIPAA policies and procedures and ensure staff read and attest to their review
Document employee trainings and other compliance activities
Thoroughly document employee training processes, activities, and attestations
Establish and communicate clear breach report processes
to all employees
Ensure that staff understand what constitutes a HIPAA breach, and how to report a breach
Implement systems to track security incidents, and to document and report all breaches
Institute an annual review process
Annually assess compliance activities against theHIPAA Rules and updates to HIPAA
Continuously assess and manage risk
Build a year-round risk management program and integrate continuous monitoring
Understand the ins and outs of HIPAA compliance— and the costs of noncompliance
Download this checklist for easy referenceDownload Now
FEATURED VANTA RESOURCE
The ultimate guide to scaling your compliance program
Learn how to scale, manage, and optimize alongside your business goals.