Failing to maintain customer data privacy and security can lead to significant financial and reputational consequences
Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is critical for any business tHandling credit card payments online? If you don’t comply with PCI DSS security standards, your business could face serious consequences.
Non-compliance is a data breach risk. It can result in huge fines, customer loss of trust, and even being barred from processing transactions. Most companies do not have such guidelines in mind. They know about them only when they have to face heavy fines.
This guide will teach reactJS programmers and businesses about PCI non-compliance fees. We will cover those fees, what occurs when you fail to meet specifications, and how to avoid expensive mistakes.
Key Takeaways
- PCI DSS compliance is required for businesses handling credit card data. It protects information from being compromised and prevents penalties.
- Not following rules can result in a monthly fine. This fine can be anywhere from $20 to $100,000. This depends on how big a problem is and how large an organization is.
- Using cloud-based tools can accelerate and ease PCI DSS conformity.
What Is PCI Non-Compliance?
PCI non-compliance is failing to adhere to the PCI DSS security standards outlined in the agreement with your payment processor. Non-compliance can occur in several ways, including:
- Data breach: Following PCI DSS rules doesn't ensure complete safety from data breaches. If a merchant doesn’t comply after an investigation, it will face fines and penalties. These will continue until compliance is restored.
- Improper storage of credit card data: Improper storage of credit card data can lead to non-compliance. This includes writing down credit card info and leaving it in public view. It also covers poor security of physical or digital payment records and weak card data encryption.
- Insufficient protection of customer data: Weak customer data protection leads to poor password rules and a lack of privacy or encryption standards.
The PCI Security Standards Council does not enforce compliance. It's up to each payment brand to decide what counts as compliant. They also need to enforce compliance with their merchants. Each brand sets its terms, which include the penalties invoked for failing to comply.
Need to brush up on the basics of PCI Compliance? Check out The Complete Guide to PCI Compliance.
Is There a PCI Compliance Fee?
Payment processors such as Square and PayPal partner with credit card companies. They help small businesses accept credit card payments. This can happen through point-of-sale systems and online. These processors must keep credit card data secure. Some might charge a PCI compliance fee to cover costs.
PCI-DSS compliance has 12 thorough requirements. Make sure you meet them all with our Complete PCI Compliance Checklist.
PCI Compliance Fees: What to Expect
Many payment processors charge PCI compliance fees to help merchants maintain security. These fees cover services such as security scans and data breach insurance.
| Payment Processor | PCI Compliance Fee (Monthly) | Annual Fee Range |
| Square | $0 - Included in service | N/A |
| PayPal | $8 - $10 | $75 - $120 |
| Other Processors | Varies | Varies |
Some processors waive these fees, embedding compliance costs within transaction fees. Always check your provider’s terms before signing up.
PCI compliance fees usually range from $8 to $10 a month. Annually, they are about $75 to $120. However, these amounts can differ between payment processors. Some processors might waive the fee. Instead, they could include PCI compliance costs in other payments.
Many believe that merchants are getting scammed by the PCI compliance fee. However, these fees often help payment processors offer extra services. This includes regular security scans and data breach insurance. Check your payment processor’s terms of service. Make sure you understand their fees before you sign up.
PCI-DSS compliance has 12 thorough requirements. Make sure you meet them all with our Complete PCI Compliance Checklist.
Is There a PCI Non-Compliance Fee?
Not following PCI rules can lead to hefty fines. Organizations will face these fines every month until they fix their compliance issues.
The severity of PCI compliance fines depends on several factors. This includes the organization's size, the number of transactions it handles, and the terms with credit card or payment processors.
Payment processors usually charge a monthly PCI compliance penalty of $20 to $50. If your account is out of compliance, they will keep charging this fee until you fix the issue. If your account stays negligent, the processor may block you from charging credit cards until you comply. They could also deactivate your account completely.
Credit card company fees are another matter. You could face monthly fines if a credit card provider sees your organization as non-compliant. These fines can range from $5,000 to $100,000. These fines can grow if your organization stays out of compliance.
These companies can also add fines for data breaches, even if an organization follows the rules. These penalties can change depending on the size and scope of the data breach. They also rely on the payment processor's agreement terms. Fines are usually a lump sum payment of up to $500,000 per incident or a fine per affected cardholder.
Additionally, maintaining compliance can be expensive. "The cost of cloud security tools and audits is between $5,000 and $100,000, depending on the industry." While this may seem like a significant investment, it is often far less than the penalties for non-compliance.
Other PCI Compliance Penalties
Along with fines, organizations that don't follow PCI standards may face:
- Organizations must notify the public about a data breach in all 50 states. This applies whether the breach is due to PCI non-compliance or not.
- Loss of payment processing: If businesses don’t meet PCI compliance for too long, they might lose the ability to accept credit card payments. This usually means a temporary loss of access until compliance is back.
- Lawsuits: If organizations have data breaches and fail to comply with laws, they might face class-action lawsuits. This can lead to lost time and money for lawyers or settlements.
- Loss of trust: Business partners and the public might not trust financial info from businesses that don’t comply.
Long-Term Compliance Savings
Although PCI compliance may seem costly, the long-term benefits far outweigh the risks. "Despite the fact that cloud migration is not without some costs in the initial planning, data transfer, and optimization, the long-term cost savings and benefits usually outweigh these costs."
By investing in robust security infrastructure and cloud solutions, businesses can reduce risk and improve efficiency over time.
How React JS Developers Can Ensure PCI Compliance
For React JS developers and businesses handling sensitive payment data, achieving PCI compliance means:
Key Steps to Compliance
- Use Secure Payment Gateways – Services like Stripe and PayPal handle security for you.
- Encrypt Cardholder Data – Use HTTPS and TLS encryption for all transactions.
- Implement Strong Authentication – Enforce multi-factor authentication (MFA) and strong password policies.
- Conduct Regular Security Audits – Regularly scan for vulnerabilities and fix them immediately.
- Limit Data Storage – Never store CVV codes, and purge unnecessary cardholder data.
The Role of Third-Party Security Providers in PCI Compliance
Third-party security providers are vital for businesses without in-house security skills. They help achieve and maintain PCI DSS compliance.
Why Use Third-Party Security Services?
- Providers in compliance focus on security. They help businesses meet all PCI DSS requirements without any gaps.
- Automated Security Monitoring: Continuous monitoring helps detect vulnerabilities before they become serious threats.
- Threat Mitigation Services: These security measures stop attacks before they happen. If a breach does occur, they reduce the damage.
- Outsourcing compliance tasks helps businesses focus on growth instead of security maintenance.
Choosing the Right Security Provider
When selecting a third-party security provider, consider:
- Industry Reputation – Look for providers with a proven track record in PCI compliance.
- Service Offerings – Ensure they offer encryption, monitoring, and risk assessment services.
- Cost and Scalability – Find a solution that fits your budget while scaling with your business growth.
Security providers can add compliance features to cloud environments for businesses that use React JS. This helps reduce risk and protect data.
Maximize PCI Compliance With DuploCloud
Achieving PCI compliance is a serious matter, but it’s not easy. Many controls need attention. Even big teams can take months to make a software application compliant.
We built DuploCloud to automatically add PCI DSS security controls for cloud-native applications. It also offers active, 24/7 monitoring to help keep compliance secure. Read our whitepaper to see how DuploCloud boosts security, cuts cloud costs, and speeds up your go-live time.
FAQs
What happens when you don't meet PCI-DSS
Ignoring PCI compliances has severe business and economic consequences. Non-compliant companies can be penalized between $20 and $100,000 per month. This is degree and size-dependent. Payment processors can freeze or cancel credit card transactions.
This deprives them of revenue streams. Compliant businesses are not merely penalized. Customers, banks, and regulators can sue them for data breaches. Reputational loss is long-term. Customers lose faith in companies that fail to keep their sensitive financial information confidential.
Are PCI compliance fees required?
Not always. Some transaction fees from specific payment processors have embedded compliance costs. Others have a monthly PCI fee ranging from $8 to $10.
These typically feature security scans, risk assessments, and breach protection services. Merchants should thoroughly examine their processor's terms. This will indicate charges and whether or not helpful security services are being included.
Can I be penalized for being PCI-compliant?
Yes. PCI compliance lowers security risks but is not a guarantee against being fine-free. It all depends on how serious a breach is, how many cardholders have been impacted, and what you have with your payment processor. Some companies buy cyber liability insurance to cap the cost of such an event.
How do I know whether I'm PCI compliant?
To determine PCI compliance status, companies should
Implement security features like encryption, stringent authentication, and access control. and provides active, 24/7 monitoring to reduce the likelihood of losing compliance. Read our whitepaper to discover how DuploCloud can enhance security while decreasing cloud operating costs and reducing your time to go-live.
Consult their payment processor to confirm.
Complete a PCI Self-Assessment Questionnaire (SAQ) for transaction quantity and security procedures.
Undergo security audits and scans conducted by a Qualified Security Assessor (QSA).
