Entities offering services that involve storing, processing, or transmitting cardholder data on behalf of other businesses are classified according to Payment Card Industry (PCI) standards. The specific requirements and validation levels they must adhere to depend on the scope and volume of transactions handled. For instance, a company providing secure data destruction for cardholder data would fall under this classification, as would a business hosting e-commerce websites that process credit card information.
Adherence to these security standards ensures a consistent and robust approach to protecting sensitive payment data across the ecosystem. This reduces the risk of data breaches and associated financial and reputational damage. The implementation of these safeguards has evolved over time in response to emerging threats and changes in payment technology, solidifying the integrity of the payment card industry. This evolution continues to adapt to new technologies and threats.