Safeguarding credit card data has become a paramount concern for merchants in today’s digital landscape. Moreover, adherence to the Payment Card Industry Data Security Standard (PCI DSS) also becomes obligatory as they handle the processing, storage, or transmission of such sensitive information. However, achieving PCI DSS compliance is not a one-size-fits-all approach. 

 

Since businesses face varying security risks today, the PCI Security Standards Council has devised four compliance levels. Each organization striving for PCI compliance must carefully assess its operational requirements and embark on a tailored path to achieve the level of compliance that best suits its unique needs.

 

But what are the PCI DSS compliance levels? And where does your business stand in achieving PCI DSS compliance? Let’s explore this in the article below.

 

What are the different PCI DSS compliance levels?

 

The PCI Security Standards Council has devised two levels of PCI compliance specifically designed for service providers, while four levels are established for merchants. Two factors determine the assignment of a compliance level to an organization: the annual volume of credit card transactions processed and whether the organization has encountered a cybersecurity incident or data breach resulting in compromised credit card information or cardholder data.

 

The four levels of PCI DSS compliance are: 

 

• Level 1: 6M+ transactions/per year

 

• Level 2: 1-6M transactions/per year

 

• Level 3: 20K-1M transactions/annually

 

• Level 4: <20K transactions/per year

 

Let’s explore these compliance levels in detail. 

 

PCI level 1

 

Level 1 PCI compliance is applicable to merchants processing an annual volume of six million card transactions. Unlike other PCI levels that only necessitate a Self-Assessment Questionnaire (SAQ), Level 1 compliance mandates an annual report conducted by either a qualified security assessor (QSA) or an internal security assessor (ISA). 

 

A QSA conducts an onsite audit, while an ISA trained within your organization performs the assessment and serves as a liaison to external auditors. This classification represents the strictest level of PCI audit. In the event of a data breach compromising cardholder data, businesses are subject to an external audit, regardless of their Level 1 status.

 

PCI requirements for level 1 compliance

 

The PCI level 1 compliance requires merchants to:

 

• Undergo an annual assessment (ROC) conducted by a QSA or ISA.

 

• Conduct quarterly network scans with an ASV.

 

• Submit a completed AOC form.

 

PCI level 2

 

An onsite PCI audit is not mandatory for merchants classified as PCI Level 2. Instead, they are only required to fulfill a Self-Assessment Questionnaire (SAQ). The specific SAQ type depends on the scope of the audit, leading to varying numbers of questions that need to be addressed.

 

However, in certain cases, merchants may be subject to an onsite audit and an annual report on compliance. This requirement arises if the merchant experiences a data breach or their acquiring bank deems it necessary.

 

PCI requirements for level 2 compliance

 

• Quarterly network scan by Approved Scan Vendor

 

• Attestation of Compliance Form

 

• Annual Self-Assessment Questionnaire (SAQ)

 

PCI level 3

 

Level 3 compliance is designed for merchants with a lower volume of credit card transactions annually, typically between 20,000 and one million transactions. These organizations can follow a self-assessment questionnaire (SAQ) to demonstrate their compliance. 

 

They may occasionally require assistance from external scanning vendors. This level acknowledges the security challenges faced by smaller enterprises and offers a streamlined compliance path while ensuring the protection of cardholder data.

 

PCI requirements for level 3 compliance

 

• Quarterly network scan by Approved Scan Vendor

 

• Annual Self-Assessment Questionnaire (SAQ)

 

• Attestation of Compliance Form

 

PCI level 4

 

Level 4 PCI compliance represents the lowest level of audit mandated by major credit card companies. It caters to merchants with a limited volume of annual credit card transactions, typically less than 20,000. 

 

These organizations can complete a shorter SAQ, focusing on essential security controls. While the risk may be comparatively lower for low-volume entities, they still need to implement and maintain necessary security measures to protect cardholder information.

 

PCI requirements for level 3 compliance

 

• Quarterly network scan by an Approved Scan Vendor (ASV)

 

• Annual Self-Assessment Questionnaire (SAQ)

 

 

What are PCI service providers’ compliance levels?

 

Service providers are entities that are not considered payment brands but involved in processing, storing, or transmitting cardholder data on behalf of other organizations. They offer services impacting or potentially impacting the security of cardholder data. Examples include managed service providers offering managed firewalls, IDS/IPS, other services, and hosting service providers.

 

Service providers are categorized into two compliance levels based on their annual transaction volume. See the table below: 

 

PCI DSS Service Provider Level 1	> 300K transactions/annually
PCI DSS Service Provider Level 2	< 300K transactions/annually

 

The PCI DSS service provider compliance requirements based on levels are given below:

 

Service provider level 1 compliance requirements

 

• ASV Scan

 

• Report on Compliance (ROC)

 

• Attestation of Compliance (AOC)

 

Service provider level 1 ompliance requirements

 

• SAQ

 

• ASV Scan

 

Simplify and secure your path to PCI DSS compliance with CyberArrow

 

In this guide, we explored the various PCI DSS compliance levels and what each requires from organizations. Navigating these requirements can feel overwhelming, especially with the constant need for accurate reporting, monitoring, and validation.

 

Instead of manually managing PCI DSS compliance, streamline the process with CyberArrow GRC. CyberArrow automates the entire compliance journey, reducing the burden on your team and ensuring that your organization remains secure and compliant.

 

Why choose CyberArrow GRC for PCI DSS compliance?

 

• Automated compliance: CyberArrow automates up to 90% of the PCI DSS compliance process, saving you time and minimizing human error.

 

• Real-time monitoring: Stay on top of your compliance status with real-time dashboards that offer a clear view of your progress.

 

• Cross-standard integration: Easily align PCI DSS compliance with other standards through CyberArrow’s cross-standard mapping, helping you meet multiple regulatory requirements at once.

 

• Audit-ready documentation: CyberArrow automatically gathers and stores all necessary documents, simplifying the audit process and ensuring you’re always prepared.

 

A retail business handling large volumes of transactions used CyberArrow GRC to automate PCI DSS compliance. The platform helped them cut down the manual effort by 80%, track their compliance in real-time, and pass their audit with ease, ensuring their customers’ payment data was secure.

 

See what our client’s have to say about CyberArrow GRC: