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Payment Card Processing

Empower your payment card processing organization to enhance payment security, protect cardholder data, and demonstrate operational excellence with Glocert International's specialized ISO certifications, security assessments, and compliance solutions.

Why Payment Card Processing is Different

Payment card processors and payment service providers handle highly sensitive cardholder data, operate under strict PCI DSS requirements, and are subject to evolving payment security, financial regulations, and data protection regulations. The combination of regulatory pressure, cardholder data sensitivity, operational risk, transaction volume, and third-party exposure creates unique compliance challenges that require specialized expertise and payment-specific solutions.

Regulatory Obligations

Payment card processors must navigate multiple regulatory frameworks including PCI DSS (mandatory for payment card security), SOC 1 (for financial controls), SOC 2 (for service organization controls), ISO 27001 (for information security), and financial sector regulations. Understanding which regulations apply and how they intersect is critical for maintaining compliance, avoiding penalties, and protecting cardholder data across different jurisdictions. Payment card security requirements are more prescriptive than general financial compliance.

Common Compliance Mistakes

Many payment card processors make critical mistakes including treating PCI DSS as a checkbox exercise instead of a governance system, implementing security controls without addressing payment-specific risks (network segmentation, encryption, access controls), ignoring third-party vendor risk, failing to maintain evidence between audits, and insufficient payment card security. Understanding these common pitfalls helps organizations avoid costly compliance failures and regulatory penalties.

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Regulatory Obligations

Understanding which regulations apply to your payment card processing organization and how they intersect is critical for maintaining compliance and protecting cardholder data.

Mandatory Requirements

PCI DSS: Required for payment card processors and payment service providers that accept, process, store, or transmit payment card data. Applies to all payment processors, payment gateways, and payment service providers handling cardholder data. Non-compliance can result in fines, loss of payment processing privileges, and reputational damage.

SOC 1: Required for payment processors handling financial transactions. Demonstrates Internal Controls Over Financial Reporting (ICFR) for customers, auditors, and regulators.

Financial Regulations: Payment processors must comply with financial sector regulations, banking regulations, and payment regulations in jurisdictions where they operate.

Commonly Required Frameworks

SOC 2: Commonly required by enterprise customers and partners for payment processors. Demonstrates security, availability, processing integrity, confidentiality, and privacy controls for payment processing services.

ISO/IEC 27001: Widely recognized information security management system standard, often required for enterprise contracts, partnerships, and regulatory compliance in payment processing.

ISO/IEC 27701: Privacy information management system extension to ISO 27001, helping payment processors demonstrate GDPR and other privacy law compliance.

Emerging Regulatory Focus

Operational Resilience: Increasing focus on business continuity and operational resilience for payment processors, including ISO 22301 and regulatory requirements for payment system availability.

Third-Party Risk: Enhanced scrutiny of third-party vendors, payment gateways, and service providers in payment processing operations.

Real-Time Payment Security: Growing emphasis on real-time payment processing security, fraud detection, and transaction monitoring capabilities.

Commonly Adopted Certifications

These certifications help payment card processing organizations demonstrate compliance, protect cardholder data, and meet regulatory requirements.

PCI DSS

For payment card security. Required for payment processors handling payment card data. Ensures organizations maintain secure environments and protect cardholder data throughout the payment lifecycle.

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SOC 1

For financial controls. Demonstrates Internal Controls Over Financial Reporting (ICFR) for payment processors handling financial transactions and processes.

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SOC 2

For service organization controls. Commonly required by enterprise customers and partners for payment processors. Demonstrates security, availability, processing integrity, confidentiality, and privacy controls.

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ISO/IEC 27001

For information security governance. Provides a systematic approach to managing information security risks and protecting cardholder data across payment processing operations.

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ISO 22301

For business continuity. Ensures payment processors can maintain critical operations and payment processing services during disruptions, essential for operational resilience.

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ISO/IEC 27701

For privacy management. Extends ISO 27001 to provide a privacy information management system aligned with GDPR, CCPA, and other privacy regulations, essential for payment processors handling customer data.

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ISO 31000

For risk management. Strengthens risk management capabilities and enhances organizational resilience in payment processing operations, addressing financial, operational, and technology risks.

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Penetration Testing

For security validation. Identifies and remediates payment processing security vulnerabilities, network security weaknesses, and access control gaps in payment systems.

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Common Compliance Mistakes

Understanding these common pitfalls helps payment card processing organizations avoid costly compliance failures and build more effective security and compliance programs.

Treating PCI DSS as a Checkbox Exercise

Many payment processors implement PCI DSS as a checklist rather than a governance system. Effective payment card security requires executive leadership, organizational culture change, and integration with payment processing operations, not just technical controls.

Security Controls Without Business Alignment

Implementing security controls without aligning with payment processing operations and customer requirements leads to friction, workarounds, and compliance failures. Security must integrate seamlessly with payment processing workflows.

Ignoring Third-Party and Vendor Risk

Payment processors often focus on internal controls while overlooking third-party vendors, payment gateways, cloud service providers, and software supply chain risks. These represent significant risk vectors that must be assessed and managed.

Failing to Maintain Evidence Between Audits

Many payment processors prepare evidence only during audit periods, leading to gaps, inconsistencies, and compliance failures. Continuous evidence maintenance and monitoring are essential for effective compliance in payment processing.

Insufficient Payment Card Security

Many payment processors fail to properly implement PCI DSS requirements, including network segmentation, encryption, access controls, and monitoring. Payment card security requires comprehensive controls, not just basic compliance.

Inadequate Incident Response Planning

Payment processors often have incident response plans that are not tested, not integrated with operations, or fail to address customer notification, regulatory reporting, and business continuity requirements effectively.

How Glocert Supports Payment Card Processing Organizations

Glocert supports payment card processing organizations through independent certification, assurance, and audit services aligned to international standards and payment security regulations.

Our payment card processing compliance services include PCI DSS compliance for payment card security, SOC 1 audits for financial controls, SOC 2 audits for service organization controls, ISO 27001 certification for information security governance, ISO 22301 certification for business continuity, ISO 27701 certification for privacy management, and penetration testing to identify and remediate security vulnerabilities.

We understand the unique challenges of payment card processing organizations including regulatory complexity, cardholder data sensitivity, payment card security, transaction processing, third-party vendor risk, and operational resilience. Our auditors bring deep payment card processing industry expertise and work with you to build compliance programs that protect cardholder data, demonstrate operational excellence, ensure payment security, and meet regulatory requirements across multiple jurisdictions.

Frequently Asked Questions

Do payment processors need both PCI DSS and ISO 27001?
Many payment processors benefit from both certifications. PCI DSS is mandatory for organizations handling payment card data and demonstrates payment card security. ISO 27001 provides a comprehensive information security management system framework that can help demonstrate PCI DSS compliance more effectively. Many payment processors use ISO 27001 as the foundation for their security program and pursue PCI DSS to meet payment card security requirements. The choice depends on whether you handle payment card data, customer requirements, and compliance strategy.
What is the difference between SOC 1 and SOC 2 for payment processors?
SOC 1 focuses on Internal Controls Over Financial Reporting (ICFR) for financial processes and transactions, essential for payment processors handling financial transactions. SOC 2 demonstrates service organization controls including security, availability, processing integrity, confidentiality, and privacy controls. Payment processors often pursue both SOC 1 for financial controls and SOC 2 for service organization controls to meet diverse customer and regulatory requirements. Many payment processors also pursue ISO 27001 as the foundation for their security program.
How does third-party vendor risk affect payment processor compliance?
Third-party vendor risk is critical in payment processing given reliance on vendors for payment gateways, cloud services, software components, and business processes. Payment processors must assess vendor security capabilities, require appropriate certifications (SOC 1, SOC 2, ISO 27001, PCI DSS), ensure contracts include security and privacy requirements, monitor vendor compliance, and have incident response plans that include vendors. Many payment breaches originate from third-party vendors, making vendor risk management a priority. PCI DSS, ISO 27001, and regulatory requirements include vendor management obligations.
What happens if a payment processor operates in multiple jurisdictions?
Payment processors operating across jurisdictions must comply with all applicable regulations. A US payment processor with EU customers must comply with both US financial regulations and GDPR. Organizations may need to address data residency requirements, cross-border data transfer restrictions, and jurisdiction-specific financial and privacy laws. ISO 27001 and ISO 27701 provide frameworks that can help harmonize compliance across jurisdictions, but organizations must still meet jurisdiction-specific requirements. Many organizations use ISO 27701 to demonstrate GDPR compliance while also addressing other privacy regulations.
How do payment card processing requirements differ from general financial compliance?
Payment card processing introduces specific requirements including PCI DSS for payment card security, network segmentation, encryption, access controls, and monitoring. Payment processors must also comply with financial regulations, SOC 1 for financial controls, ISO 27001 for information security, and ISO 22301 for business continuity. Payment card security requirements are more prescriptive than general financial compliance, focusing on protecting cardholder data throughout the payment lifecycle. Many payment processors pursue PCI DSS, SOC 1, and ISO 27001 to demonstrate comprehensive security and financial controls.
Can payment processors use ISO 27001 instead of separate PCI DSS and SOC 1 certifications?
ISO 27001 provides a comprehensive information security management system, but PCI DSS and SOC 1 serve different purposes. PCI DSS is mandatory for organizations handling payment card data and demonstrates payment card security. SOC 1 demonstrates Internal Controls Over Financial Reporting (ICFR) for financial processes. Many payment processors pursue ISO 27001 as the foundation for their security program, add PCI DSS for payment card security, and pursue SOC 1 to meet customer and regulatory requirements for financial controls. The choice depends on whether you handle payment card data, customer requirements, and compliance strategy.
What are the implications of cloud hosting for payment processor compliance?
Cloud hosting introduces additional compliance considerations for payment processors. Organizations must ensure cloud providers meet security and privacy requirements, implement appropriate access controls, and ensure data encryption. Under PCI DSS, organizations remain responsible for payment card data even when stored in the cloud, so proper vendor assessment and contract management are critical. Many payment processors require cloud providers to achieve SOC 2 or ISO 27001 certification. ISO 27017 and ISO 27018 provide cloud-specific security and privacy controls. Regulatory requirements may also restrict cloud hosting of payment card data in certain jurisdictions.
How should payment processors approach business continuity and operational resilience?
Business continuity and operational resilience are critical for payment processors given the need to maintain payment processing services during disruptions. ISO 22301 provides a business continuity management system framework, and many financial regulators require operational resilience capabilities. Payment processors should implement business continuity plans, test them regularly, ensure critical systems can be recovered, and have incident response plans that address customer notification and regulatory reporting. Many payment processors pursue ISO 22301 to demonstrate business continuity capabilities and meet regulatory requirements for operational resilience.

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Glocert International

Are you ready to enhance payment security and achieve compliance excellence? Glocert International is ready to assist with ISO certifications, security assessments, and compliance solutions tailored to your payment card processing organization.