Payment Card Industry (PCI) security refers to the set of standards and regulations established by the PCI Security Standards Council (PCI SSC) to ensure the secure handling, processing, and transmission of credit card data. These standards are designed to protect sensitive cardholder information from fraud, data breaches, and cyber threats.

The PCI SSC was founded in 2006 by major credit card companies, including Visa, MasterCard, American Express, Discover, and JCB International, to create a unified framework for payment security. Compliance with PCI security standards is mandatory for any business that processes, stores, or transmits payment card data.

This guide explores the three primary PCI security standards, their requirements, enforcement mechanisms, and the consequences of non-compliance.

PCI Security Standards

The PCI SSC has established three key security standards to address different aspects of payment security:

1. PCI Data Security Standard (PCI DSS) – Applies to merchants and service providers handling cardholder data.
2. PCI PIN Transaction Security (PCI PTS) – Pertains to manufacturers of PIN-entry devices.
3. Payment Application Data Security Standard (PA-DSS) – Governs software developers creating payment applications.

Each standard serves a distinct purpose in securing the payment ecosystem.

1. PCI DSS: Data Security Standard

The PCI Data Security Standard (PCI DSS) is the cornerstone of the PCI security ecosystem. It is applicable to any organization—merchants, processors, acquirers, issuers, or service providers—that processes, stores, or transmits cardholder data. Whether you operate a small e-commerce site or a multinational acquiring bank, if you deal with payment card transactions, PCI DSS compliance is mandatory.

At its core, PCI DSS is designed to protect sensitive cardholder data from unauthorized access and breaches. The standard includes a broad set of 12 fundamental security requirements, categorized under six overarching control objectives. These range from implementing strong access control measures and maintaining secure network architecture to continuous monitoring and regular testing of infrastructure.

Organizations must encrypt data during transmission across open networks, restrict physical and logical access to cardholder data, and ensure that only authorized personnel can access sensitive systems. Robust antivirus and anti-malware strategies must be implemented, and all system components should be patched regularly to mitigate vulnerabilities. Network segmentation is encouraged to isolate cardholder data environments, reducing the scope of compliance audits.

PCI DSS compliance is not one-size-fits-all. Merchants and service providers are categorized into compliance levels based on their annual transaction volume. For example, Level 1 merchants process over six million transactions annually and require a full onsite audit by a Qualified Security Assessor (QSA), while Level 4 merchants—processing fewer than 20,000 transactions—may only be required to complete a Self-Assessment Questionnaire (SAQ) and undergo periodic vulnerability scans.

Maintaining PCI DSS compliance is a continuous process. It involves risk assessments, regular penetration testing, system log reviews, and documentation of information security policies. Non-compliance can result in penalties, increased scrutiny from acquirers, and reputational damage following data breaches.

Core Objectives and Requirements

Organized under six broad control objectives, PCI DSS defines 12 key requirements:

1. Build and Maintain a Secure Network
   • Use robust firewalls and routing configurations.
   • Avoid using vendor-supplied default passwords.
2. Protect Cardholder Data
   • Encrypt stored data with approved algorithms.
   • Use SSL/TLS for data in transit across public networks.
3. Maintain a Vulnerability Management Program
   • Use updated antivirus tools.
   • Develop and maintain secure systems and applications.
4. Implement Strong Access Control Measures
   • Limit access to data by need-to-know basis.
   • Assign unique IDs for each user.
   • Physically restrict access to cardholder environments.
5. Monitor and Test Networks Regularly
   • Track and monitor all access to network resources and cardholder data.
   • Conduct frequent vulnerability assessments and penetration tests.
6. Maintain an Information Security Policy
   • Establish security policies for personnel, contractors, and third parties.

Compliance Validation Levels

• Level 1: >6 million transactions/year – Requires QSA audit.
• Level 2–4: Fewer transactions – Requires SAQ and quarterly scans.

2. PCI PTS: PIN Transaction Security

The PCI PIN Transaction Security (PTS) standard is specifically designed for manufacturers and integrators of payment hardware. This includes Point of Sale (POS) terminals, Automated Teller Machines (ATMs), PIN entry devices, card readers, and secure cryptographic modules. PCI PTS aims to ensure that PIN-based transactions are conducted in a secure and tamper-resistant environment.

At the device level, PCI PTS addresses both the logical and physical security requirements necessary to safeguard sensitive cardholder information, especially the personal identification number (PIN). These requirements mandate the use of tamper-resistant enclosures, secure key injection, encrypted PIN block generation, and mechanisms to detect and respond to unauthorized access or device compromise.

For instance, if a malicious actor attempts to open or tamper with a certified POS terminal, the device must be capable of zeroizing all cryptographic keys, rendering the device inoperable and data irrecoverable. Additionally, the firmware used within the terminal must be digitally signed, ensuring that only authentic and untampered software can be installed or executed.

Compliance with PCI PTS requires submission of the hardware for rigorous testing at a PCI-recognized laboratory. These labs assess the design, firmware, encryption capabilities, physical security features, and device life-cycle management processes. Upon successful evaluation, compliant devices are listed on the PCI SSC website, enabling acquirers and solution providers to verify whether a terminal meets industry security benchmarks.

As payment technologies evolve—incorporating biometric authentication, NFC, and Tap-to-Phone capabilities—the PCI PTS standard is also adapting. Manufacturers must stay up to date with the latest modular requirements, including SPoC (Software-based PIN entry on COTS devices) and CPoC (Contactless Payments on COTS).

Devices That Must Comply

• POS terminals
• ATMs
• EPP modules
• Mobile readers

Critical Security Requirements

• Tamper-Resistant Design: Secure enclosures, epoxy protection, and detection circuitry.
• PIN Encryption: Secure key injection and real-time encryption of PINs.
• Firmware Security: Protection against unauthorized code changes.
• Physical Security: Self-destruct mechanisms for memory wipe on tamper detection.

Certification Steps

• Design evaluation
• Hardware testing by PCI-approved labs
• Compliance reporting and approval

3. PA-DSS: Payment Application Data Security Standard

The Payment Application Data Security Standard (PA-DSS) addresses the software layer of payment processing. Specifically, it applies to software vendors and developers who build and distribute third-party payment applications that are intended to be installed on merchant systems and used to store, process, or transmit cardholder data.

PA-DSS aims to ensure that payment applications are built using secure coding practices and that they do not inadvertently store prohibited data elements such as full magnetic stripe data, CVV2, or PIN blocks after authorization. The goal is to reduce vulnerabilities within payment software that could be exploited by attackers to gain unauthorized access to sensitive data.

To achieve compliance, software vendors must implement secure development lifecycles (SDLC) that include secure code reviews, threat modeling, and vulnerability testing. Applications must support strong access control mechanisms, session timeouts, secure logging practices, and encrypted data storage and transmission protocols. Developers are also expected to eliminate hard-coded passwords, use strong authentication techniques, and offer proper installation and configuration documentation for merchants.

Validation of a payment application under PA-DSS is conducted by a Payment Application Qualified Security Assessor (PA-QSA). The assessment process involves reviewing the software’s architecture, performing black-box and white-box testing, analyzing source code, and evaluating how the application handles encryption, authentication, and system logs. The PA-QSA also ensures that the software behaves securely during updates and does not allow for any backdoors or unprotected debug interfaces.

Once an application passes PA-DSS validation, it is listed on the PCI SSC website, enabling merchants to identify compliant solutions. This validation not only increases the credibility of the software provider but also reduces the risk of data compromise for merchants who adopt the solution.

While PA-DSS has served as a critical pillar for software security, it is being phased out in favor of the more flexible PCI Secure Software Framework (SSF), which includes modules like the Secure Software Standard (SSS) and Secure Software Lifecycle (Secure SLC) standard. These newer standards provide a more modern, risk-based approach to software validation and are designed to accommodate emerging technologies such as cloud-based applications, mobile wallets, and software-only POS systems.

Common Applications

• POS and mPOS apps
• Shopping carts and e-commerce platforms
• Payment gateways
• Inventory and billing systems integrated with payments

Key Requirements

• No storage of CVV, PIN, or track data after authorization.
• Use of strong encryption and tokenization.
• Secure application development lifecycle (SDLC).
• Role-based access control and logging.

Assessment

• Conducted by a PA-QSA with detailed documentation and testing.

Enforcement and Penalties for Non-Compliance

PCI security standards are enforced by credit card networks (Visa, MasterCard, etc.). Non-compliance can result in:

• Fines ($5,000–$100,000 per month)
• Increased Transaction Fees
• Termination of Merchant Accounts
• Legal Liability in case of a data breach

EazyPayTech’s Role: Your End-to-End PCI Compliance Partner

EazyPayTech offers a robust consultancy program designed for manufacturers and OEMs involved in the payment technology ecosystem. We act as your trusted partner from early-stage product design through to final certification and global deployment.

PCI-PTS Consultancy and Hardware Security Support

• We guide device manufacturers through all phases of PCI-PTS certification, ensuring your PIN-entry devices comply with the latest PTS POI standards, including secure boot, firmware protection, and physical attack resistance.
• Our team works closely with third-party accredited labs and certification bodies to accelerate your product approval and reduce time-to-market for ATMs, POS, and kiosk-based payment systems.
• We help implement tamper-detection mechanisms, secure cryptographic key loading, and secure firmware update protocols as required by PCI-PTS guidelines.

PCI-DSS Consultancy for Cardholder Data Security

• EazyPay Tech helps businesses assess their infrastructure for PCI-DSS scope and gaps, enabling a full roadmap to achieve compliance across people, processes, and technology.
• Our consultants offer system architecture design, encryption and tokenization strategies, vulnerability management planning, and real-time monitoring frameworks that align with PCI-DSS v4.0.
• We assist with the preparation of required documentation, Self-Assessment Questionnaires (SAQs), and coordinate with Qualified Security Assessors (QSAs) for full audits.

Complete Device Support: POS Terminals, ATMs, PIN Pads, and More

Whether you are designing a new payment terminal or upgrading existing devices for compliance, EazyPay Tech offers hardware solutions that are compliant, secure, and market-ready.

Payment Terminals and Smart POS Devices

• Our consultants assist with hardware selection, secure firmware design, and compliance testing for POS terminals intended for both attended and unattended use.
• We help integrate contact and contactless readers, secure EMV kernel implementation, and Android-based or Linux-based payment OS configurations as per regulatory needs.
  

ATMs and Self-Service Kiosks

• For ATM manufacturers, we offer guidance on PCI-PTS approval for Encrypting PIN Pads (EPPs), secure card readers, and end-to-end encryption protocols that comply with both PTS and DSS requirements.
• We also support integration of cardholder data protection within ATM management systems and remote monitoring platforms.
  

PIN Pads and EPP Modules

• Our team provides design and testing support for secure PIN entry devices, ensuring secure handling of customer PINs through tamper-resistant hardware and encrypted PIN transmission.
• We help meet physical and logical security controls including key injection compliance, secure display shielding, and power-down memory protections.
  

L2 and L3 EMV Kernel & Application Consultancy

As part of our commitment to full-stack compliance, we also provide EMV Level 2 (L2) and Level 3 (L3) kernel and application development support.

EMV Level 2 Kernel Development and Certification

• We support integration of EMV L2 kernels into terminals and ATMs, ensuring full compatibility with major schemes like Visa, Mastercard, RuPay, and UnionPay.
• Our team helps prepare the technical documentation and performs internal testing before formal submission to the relevant payment schemes or labs.
  

EMV Level 3 Application Support

• Our L3 services ensure that your device or terminal not only passes lab certification but is also optimized for acquirer-specific transaction flows, fallback scenarios, and contactless/dual-interface payment flows.
• We simulate end-to-end transactions, including risk management, CVM (Cardholder Verification Methods), and script processing to ensure terminal readiness.
  

What Makes EazyPay Tech the Ideal Partner for PCI Compliance?

Our consultancy offering is more than just technical—it is strategic. Here’s why global clients trust us to lead their PCI compliance journey:

Industry Expertise and Up-to-Date Knowledge

• Our consultants are experienced in working with leading payment brands and follow the latest updates to PCI-PTS and PCI-DSS standards, ensuring accurate and relevant guidance.
• We understand the nuances of global certification schemes and regional compliance needs, helping you prepare your devices for multi-country approval.
  

Speed to Market and Cost Optimization

• By aligning product design with compliance requirements from the beginning, we help reduce rework, shorten certification cycles, and cut project costs.
• We work collaboratively with your internal engineering team and third-party test labs, acting as a single point of contact for your compliance roadmap.
  

Global Device Testing and Interoperability Services

• We simulate multi-scheme environments and test device performance against real-world transaction scenarios, ensuring field reliability and smooth acquirer integration.
• Our test labs and toolkits enable pre-certification testing for EMV, PCI-PTS, and payment network-specific requirements.
  

Who Benefits from Our Services?

Our consultancy and integration services are designed to serve a wide spectrum of stakeholders in the payment device ecosystem.

Terminal Manufacturers and OEMs

Get your payment hardware certified faster with guided compliance planning, testing coordination, and kernel integration services.

Payment Solution Providers

Build secure solutions that meet both device-level and network-level security requirements with tailored PCI-DSS and PCI-PTS support.

Banks and Acquiring Institutions

Ensure deployed payment infrastructure is compliant, scalable, and resilient against fraud through pre-certified POS/ATM devices.

Retailers and Large Merchants

Achieve and maintain PCI-DSS compliance for large-scale cardholder data environments, cloud-based payment platforms, and remote payment solutions.

Future-Proof Your Payment Devices with EazyPayTech

As payment technologies evolve, so do security requirements. Tap-to-phone, SoftPOS, biometric authentication, and unattended retail systems require enhanced levels of compliance and flexibility. EazyPayTech remains at the forefront of helping payment players adapt and innovate securely.

Whether you’re launching a new smart terminal or upgrading legacy ATMs to meet PCI-PTS and PCI-DSS standards, we provide a complete suite of services to make your journey smooth, compliant, and commercially successful.

Get Started with EazyPay Tech Today

If you’re building or deploying payment devices and need a compliance expert by your side, EazyPayTech is ready to partner with you. Our PCI-PTS and PCI-DSS consultancy is designed to simplify your product development lifecycle, streamline certification, and bring secure devices to market—faster.

Contact us today to schedule a consultation and see how we can help secure your payment products and platforms across every layer of the transaction ecosystem.