Point of Sale (POS): PCI & Credit Card Security Background

From the day magnetic strip cards was introduced toemployees.
people, both restaurant owners and their customers6. Install software patches.
have been enjoying the convenience of accepting and7. Be serious when it comes to any threats, device an
using credit and debit cards. However, given the skyincident response plan.
high cost and frequency of credit fraud, wellPCI Don’ts
established card brands (Visa, MasterCard, American
Express, Discover and JCB) have taken preventive1. Whole credit card numbers should not be stored or
measures to safeguard their stakeholders.archived.
It was in 1968 when IBM created the magnetic stripe2. Transmitting credit card information unencrypted
on credit cards and became the industry standard.should not be practiced.
Given that the track data on the mag stripe can easily3. With PCI, it's not just about making you compliant
be read and duplicated, the branded cards, thewith the standards – it's all about making you and
Payment Card Industry (PCI) Security Standardsyour customers protected.
Council built a set of standards protect cardholderPCI's Effect on Restaurateurs
data, and it begins with the directive: ‘Don’tGiven consumers’ expectation of universal
store track data.’acceptance of using credit cards, merchants'
PCI Standardsrestaurateurs’ validation that they are providing
The PCI Security Standards Council had aprotection to their customers' personal data is helpful
three-pronged approach to protecting consumers,for business:
banks and merchants/restaurateurs: * PCI DSSBusiness Reputation / Image
(Payment Card Industry Data Security Standard) ?For a highly competitive business – a restaurant
includes all entities that store, process, or transmitowner does not want to be named in the media as
cardholder data: Merchants, restaurateurs, servicethe place were card data was stolen.
providers, processors, etc.Protects Ability to Accept Credit / Debit Card
Compliance Deadline: Month of January 2007Payments - by not complying and/or a breach can
(deadlines are long passed)jeopardize a merchants'/restaurateur’s ability to
What it Means – Restaurant owners, regardless ofaccept credit/debit payments. There are cases that
their establishments' size, must complete and submit a80% to 90% of transactions are through credit/debit
PCI Self-Assessment Questionnaire to their Acquiringpayments. Losing your store's ability to accept credit
Bank every year.debit cards can cause reduced customers = reduced
* PA?DSS (Payment Application Data Securitysales.
Standard) ? embraces all applications used to store,Impact of State Privacy Laws
process, or transmit cardholder data as part ofA failure to meet one's obligations that discloses
authorization or settlement. (Point-of-Sale (POS)personal credit card information with any of the 40+
application developers)States with privacy laws may have a double impact
Deadlines for Compliance:on a restaurateur. Being off-side with PCI might result
Oct. 1, 2008 ? Payment processors, agents andin fines and lawsuit costs. Being off-side with State
merchants must use software that is compliant withPrivacy Laws is a crime punishable by confinement
the new payment application security standards.with potentially more serious penalties.
Oct. 1, 2009 ? Terminate any noncompliant paymentCompliance / Security Strategy
applications that merchants might still be using in their- By making sure your restaurant or store uses
environments will be required.PA?DSS or PABP validated POS systems
July 1, 2010 ? Mandates the use of only those payment- Ensure you are using an approved PED
applications that support the new standards.- Arrange for regular security awareness training for
What this Means – After these deadlines,your employees, especially for supervisors
merchants/restaurateurs that are still using a non-PA- Do background checks on any employee with
DSS-validated application, they automatically fail theadministrative access to your system
PCI assessment and could lose their ability to accept- Have your staff sign a ‘Confidentiality
credit cards.Agreement’
* Pin Entry Devices (PED) Standard – includes all- When it comes to your PCI Self Assessment
PEDs and is aimed at ensuring that theQuestionnaire (SAQ), carefully and accurately
cardholder’s PIN, and any sensitive information arecomplete the form and when you're not sure with your
protected consistently at a PIN acceptance device, likeanswers, just ask
your resident keys.- If gaps in PCI compliance are identified, develop a
Deadline for Compliance:realistic plan to remediate them
Jan. 1, 2004 ? To all newly purchased Point-of-Sale- Be matured in sustaining compliance
(POS) PIN Entry Devices should pass testing by a- Access controls
Visa recognized laboratory and approved by Visa.- Dual factor for system and device management
July 1, 2010 ? Mandates that each Point of Sale (POS)- Proper storing of your strong passwords and secure
PEDs must have passed the testing of a PCIpasswords
recognized laboratory and been approved by the PCI- Regularly monitor system activities for possible
SSC.attacks and record evidences
What this Means ? All Merchants/restaurant owners- Controlling your wireless access points
gets two years to replace their old and unapproved- Maintain secure configuration
PIN Entry Devices.- Segment networks
PCI Do's- Have an Incident Response Plan and test it to make
sure that it's always ready when needed
1. Do routine vulnerability scans of your systems.- Test and audit the cardholder environment carefully
2. Do security awareness training for all of your staff.It may be difficult task the first time but when all the
3. Audits for system access.above are in place, a PCI compliance is not an
4. System activity logs should be monitored.expensive undertaking. It is good business practice to
5. Access privileges must be removed for separatedprotect the sensitive information of your customers.