Retail group takes a swipe at PCI, puts card companies 'on notice'
Stop forcing retailers to store payment card data, it warns card companies
Computerworld - Simmering discontent within the retail industry over the payment card industry (PCI) data security standards erupted into the open this week with the National Retail Federation (NRF) asking credit card companies to stop forcing retailers to store payment card data.
In a tersely worded letter to the PCI Security Standards Council, which oversees implementation of the standard, NRF CIO David Hogan asked credit card companies to stop making retailers "jump through hoops to create an impenetrable fortress" to protect card data. Instead, "retailers want to eliminate the incentive for hackers to break into their systems in the first place."
"With this letter, we are officially putting the credit card industry on notice," Hogan said in a statement. The NRF, a trade association whose membership includes most of the major retailers in the U.S., is the national voice for about 1.4 million U.S retail establishments.
In an interview with Computerworld this morning, Hogan said the letter was provoked by a "lot of frustration" in the industry about PCI guidelines and the deadlines associated with implementing them. If the goal of PCI is to protect credit card data, the easiest and most common sense approach is to stop requiring merchants to store the data in the first place, he said.
PCI is a data security standard mandated by Visa International Inc., MasterCard International Inc., American Express Co., Discover and the Japan Credit Bureau. It requires companies to implement a set of prescribed security controls for protecting cardholder data. Though the requirements went into affect more than two years ago, a large number of big retailers are still noncompliant because of a variety of issues that include legacy system challenges, rules interpretation issues and continuously evolving guidelines.
According to Hogan, credit card companies require retailers and others accepting payment card transactions to store certain card data sometimes for up to 18 months so that it can be retrieved in the event of chargebacks and other disputes.
But rather than have thousands of retailers store the data, credit card companies and their banks should do so, Hogan said. Retailers only need an authorization code provided at the time of a sale to validate a charge, and a receipt with truncated credit card information to handle returns and refunds. If that were done, he said, most retailers probably wouldn't store any cardholder data.
According to Hogan, under the current process, credit card companies and their banks already have the information needed for retrieval purposes and it should be their responsibility to store and protect the data. "It is a very fundamental shift. But if you think about it, it is a very common-sense approach."
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Defense Throughout the Vulnerability Life Cycle This whitepaper provides insight into how to leverage threat and log management technologies to protect your IT assets throughout their vulnerability life cycle.
- Mobile Policy Checklist Here's what to consider when putting together a mobile policy designed to support a highly productive workforce.
- Securing BYOD Mobile computing is becoming so ubiquitous that people no longer bat an eye seeing someone working two devices simultaneously. Individuals and organizations are...
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Endpoint Backup & Restore: Protect Everyone, Everywhere Arek Sokol from the bleeding-edge IT team at Genentech/Roche explains how he leverages cross-platform enterprise endpoint backup in the public cloud as part...
- Streamline Software Asset Management, Compose a software Management Symphony Keeping track of your organization's software is easy with effective software management solutions from CDW. View the videos in our software solutions channel
- Druva inSync: Endpoint Data Protection & Governance CLICK HERE to watch this video about protecting corporate data on laptops and mobile devices, sponsored by Druva. All Security White Papers | Webcasts