How Software Companies Can Boost Cybersecurity and Meet Compliance

Understanding PCI DSS and Its Importance for Software Companies

The payment ecosystem has a fundamental principle — data security standards. These standards provide guidelines and requirements to protect private/sensitive user information. The Payment Card Industry Data Security Standard (PCS DSS) is the primary benchmark that outlines the security measures payment professionals must use to protect payment card data. 

Compliance is non-negotiable, and abiding by it improves customer trust and confidence in ISV services. In addition to the broader PCI DSS standards, software providers also need to be aware of the PCI’s Secure Software Standard, which details the security requirements that facilitate the secure design and management of payment software.

Key Requirements for PCI DSS

The PCI DSS has rules that every ISV must abide by when incorporating payment systems into their software. As they process more transactions, they will need to comply with increased regulatory checks, which is why PCI compliance is divided into four levels.

There are twelve basic requirements for maintaining PCS DSS standards:

Build and maintain a secure network and systems

• Install and maintain network security controls
• Apply secure configurations to all system components

Protect account data

• Protect stored account data
• Protect cardholder data with strong cryptography during transmission over open public networks

Maintain a vulnerability management program

• Protect all systems and networks from malicious software
• Develop and maintain secure systems and software

Implement strong access control measures

• Restrict access to system components and cardholder data by business need-to-know
• Identify users and authenticate access to system components
• Restrict physical access to cardholder data

Regularly monitor and test networks

• Log and monitor all access to system components and cardholder data
• Test the security of systems and networks regularly

Maintain an information security policy

• Support information security with organizational policies and programs

You can refer to the PCI DSS Document Library to learn more. However, it’s important to remember that PCI DSS compliance requirements are continually revised and updated, with new rules being introduced in March, 2025.

Cybersecurity and general security measures protecting client payment information are constantly evolving. Because of that, it’s crucial to stay up to speed with compliance standards.

In addition to PCI DSS, ISVs and SaaS providers also need to navigate other rules and regulatory requirements such as the General Data Protection Regulation, Health Insurance Portability and Accountability Act (HIPAA) and other industry-specific mandates that cater to their clients.

Agencies like the PCI Security Standards Council ensure that merchants meet minimum levels of security when they store, process and transmit cardholder data. This is especially important for companies that accept card-not-present payments. That’s because, with digital transactions, merchants can’t visually confirm a cardholder’s identity, which makes it easier for cybercriminals to commit fraud. 

To safeguard customer information and uphold regulatory standards, it’s crucial to monitor regulations for updates and align practices with compliance standards.

Becoming a Secure SLC Qualified Software Company

The PCI Software Security Framework (SSF) gives specific insight and guidance to software providers looking to meet compliance. It’s a collection of standards and programs that facilitate the secure design, development and maintenance of payment software.

There are two standards in the PCI SSF. However, the focus for ISVs is the PCI Secure Software Life Cycle (SLC) Standard. As a software provider offering payments, ensure your SLC is in accordance with the PCI standard. To do this, enlist the help of a Secure SLC Assessor to review your SLC and validate it. Your accessor will submit a Report on Compliance (ROC), after which you will be listed on the PCI CSS Secure SLC-Qualified Software Vendors list.

Best Practices for Maintaining PCI Compliance

Maintaining PCI compliance requires ongoing vigilance and adherence to changing requirements. The best ways to maintain PCI compliance are to:

• Establish PCI-compliant Software Life Cycle, SLC and have a Secure SLC Accessor review and approve your SLC as compliant with the standard
• Establish robust security policies and procedures that align with PCI DSS requirements and industry standards
• Regularly assess and update security controls, conduct comprehensive risk assessments and ensure staff receive adequate training on security protocols and compliance obligations
• Partner with a professional PCI-compliant service provider who can streamline compliance efforts and mitigate potential risks

5 Strategies To Secure Software-Based Payment Systems

There are a lot of processes and safeguards that go into keeping customer information safe from cyber criminals and fraudsters. Below are five strategies software providers can follow to secure their software payment systems:

Encryption: Implement end-to-end encryption to protect data during transfer and storage. Utilize strong cryptographic algorithms to protect payment card information and personal data from unauthorized access.

Access controls: Enforce strict access controls that only allow authorized personnel access to sensitive customer information. Implement role-based access controls (RBAC) and multi-factor authentication (MFA) to verify the identity of users and prevent unauthorized entry or exposure.

Data minimization: Adopt a “data minimization” approach by collecting only the information necessary for that particular transaction processing. Limit the retention of sensitive customer data and dispose of it securely once it is no longer needed.

Regular security audits: Conduct regular security audits and assessments to identify vulnerabilities and weaknesses in your payment integrations. Perform penetration testing, vulnerability scanning and code reviews to identify and handle security risks.

Tokenization: Go beyond basic encryption by taking advantage of advanced tokenization to store customer payment credentials securely without the risk of sensitive information being stolen or misused.

Leveraging Technology To Enhance Cybersecurity and Compliance

With so many recent technological advancements, it’s easier than ever for ISVs and SaaS providers to enhance cybersecurity and meet regulatory compliance. Standard methods include biometric authentication, two-factor authentication (2FA) and multi-factor authentication. These help prevent unauthorized access to payment systems.

Here are a few ways to leverage technology to enhance data security:

Secure authentication: Implement secure authentication mechanisms, such as tokenization and biometric authentication, to verify the identity of users and prevent unauthorized access to payment systems.

Fraud detection and prevention: Deploy advanced fraud detection such as artificial intelligence and machine learning algorithms and models to identify and mitigate fraudulent transactions in real-time. Monitor transaction patterns and user behavior to detect anomalies and suspicious activities.

Secure communication channels: Utilize secure communication channels, such as Transport Layer Security (TLS), to encrypt data transmitted between the payment terminal and backend systems. Implement secure Application Program Interfaces (APIs) and protocols to ensure the integrity and confidentiality of transaction data.

By prioritizing data security and compliance, software providers can build trust and confidence among customers and partners by safeguarding sensitive information and mitigating the risk of cyber threats.

Conclusion

ISVs and SaaS platforms continue to shape the future of digital payments and propel innovation in the payment ecosystem. By employing a proactive approach to cybersecurity and compliance, software providers can remain on top of security threats and position themselves for long-term success in digital payments.