It was developed by the major credit card companies as a guideline to help organizations that process card payments prevent credit card fraud, hacking and various other security issues. A company processing card payments must be PCI compliant or they risk losing the ability to process credit card payments.
Today, many employees are paid with payroll cards, a recent innovation that allows employees to access their paychecks from wherever they are.However, sophisticated thieves have been able to extract credit and debit card information from unsecured databases and other means.
This has resulted in a higher incidence of identity theft, a crime that affects merchant companies, financial institutions, e-commerce companies and individuals.Because of these security breaches,the major credit card companies – American Express, Discover, MasterCard and Visa – decided to create regulations to help prevent theft of consumers’ data.
The Payment Card Industry (PCI) Data Security Standards were created by MasterCard and agreed to in 2004 by the four major credit card companies. Each of the credit card companies has its own term for these standards. On June 30, 2005, the regulations took effect.