PCI DSS v4.0 Compliance - Everything You Need to Know

The Payment Card Industry Data Security Standard (PCI-DSS) has been a fixture of the card payment industry since 2004. It defines the standards for credit card providers to manage cardholder data better, reduce fraud, and maintain confidence in the global card payments system.

As new technologies have emerged, the PCI-DSS standard has evolved along with it, such as with contactless payment devices to transact business. Consumers and companies appreciate these enhanced capabilities because they make transactions quick, easy, and secure.

The recent introduction of the latest version – PCI DSS v4.0 – was on April 1, 2024, and will be a compliance requirement by March 31, 2025. Companies that use credit card services will need to ensure they are compliant with its requirements by then if they are to operate. 

Let’s explore PCI DSS v4 in more detail to understand why it matters and how businesses can get a head start toward compliance, so organizations can continue to grow.

Overview of PCI-DSS v4.0

A key driver of PCI-DSS v4 reflects how companies now embed credit payment flows into operations, pursuing omnichannel go-to-market strategies that seamlessly blend physical outlets, website-based sales, affiliate marketing, channel marketing, and more.

These businesses typically leverage highly networked systems, processes, and applications to deliver services. PCI-DSS v4 reflects this as it broadens compliance requirements to roles not directly impacted in the past.

Let’s examine some of the enhancements in PCI-DSS v4.

1. Continue to Meet the Security Needs of the Payments Industry

The rapidly evolving threats to digital commerce means that enhancements to security are essential to continue to protect consumers against potential risks. For example, the expanded use of multifactor authentication, and the use of stronger passwords, are central to the updated PCI-DSS framework. This also includes additional measures to combat phishing and social engineering attacks.

2. Promoting Security as a Continuous Process

As credit card payments increasingly form a core part of many companies’ BAU, security management must also be embedded in the business’s daily operations.

For PCI-DSS v 4.0, this means allocating key responsibilities to specific business roles so nothing critical is missed. The updated standard also provides more guidance compared to earlier versions, so that the expectations for managers and companies are clearer.

3. Increased Flexibility for Organizations Using Different Methods to Achieve Security Objectives

PCI-DSS v 4.0 aims to make compliance easier by avoiding being too rigid about the steps companies take to obtain compliance. Large organizations have different needs than smaller businesses, and flexibility is at the heart of version 4. Ensuring companies can provide compliance in practical and affordable ways that work for them.

For example, it allows using generic or group accounts to manage a payment service. This would reduce overhead costs for many small businesses. It also recognizes that different companies have varying risk profiles, with different requirements, eliminating the need for a one-size-fits-all approach. It even allows for a customized approach to compliance to capture a business’ unique requirements.

Differences Between PCI-DSS v 3.2.1 and v 4

When planning the upgrade path from PCI-DSS v 3.2.1 to v4.0, there are 12 critical areas that security, GRC, and cybersecurity professionals will want to keep front of mind.

1. Network Security

This applies to all methods of segmentation controls and connectivity. The cardholder data environment (CDE) wireless must be segmented from the rest of the CDE to better prevent fraud.

2. Protection of Cardholder Data in Transit

Companies must track the keys and certificates used to secure account data in transit, including self-signed certificates.  

3. Authorization Management

The new version has extended the DSS-required role-based and least privilege access model to application and system accounts.  

4. Logging and Monitoring

Log reviews can be automated. As of March 31, 2025, all organizations must monitor for, respond to, and correct control failures. 

5. System Hardening

PCI-DSS v4 now recognizes that one function per server allows for more difficult to separate services, like active directory on domain name services, to live on a single system with the needed protections in place. 

6. Malware Protection

Next-generation and behavior based anti-malware is now acceptable to use. The processes must be automated mechanisms to protect against phishing.

7. Authentication and Password Management

12-character passwords and risk-based expiration must be strictly controlled. They must also be tracked for any shared, application, or service account. Admins are also not allowed to bypass MFA.

8. Validation & Testing

Organizations must implement authenticated internal vulnerability scanning to correct vulnerabilities of low and medium severity. Additionally, there are now more client-side payment page integrity checking.  

9. Account Data Protection at Rest

Even if storage is temporary, SAD at rest must be protected to prevent copying and other easy exfiltration. Organizations will only be able to use full disk and volume encryption for removable media.

10. Vulnerability Identification & Management

There are more relevant, comprehensive security measures to protect against web-skimming. Companies can now use automated web app protections to track and handle their vulnerabilities.

11. Facilities, Media, & POI Security Management

More streamlined, with better grouping of physical access, visitor access, and POI requirements.

12. Security Compliance Program Management

Organizations must perform targeted risk assessments for control frequencies and customized approaches. As well as assess cryptography, outdated system risks, and routinely verify PCI scope.

For a more in-depth, detailed overview of the changes from PCI DSS v3.2.1 to v4.0, you can refer to the Summary of Changes document in the PCI SSC Document Library.

The Benefits of PCI DSS V4 and How a GRC Tool Can Help 

The value of PCI DSS v4.0 lies in the practical guidance it offers companies to deliver and use secure, robust, and reliable card-based payment services in a fast-changing world. It provides a solid platform that allows companies to not only have a trusted payment system but continue to build trust with their customers as they focus on furthering their business goals. 

It is easy to get swallowed up by the details of any regulatory or compliance framework. Having a centralized, scalable GRC tool helps organizations understand and assess the risks and issues they face to make fully informed decisions about potential actions they need to take.  

The PCI DSS framework includes pre-built controls, policies, and other requirements that need to be met. All of which can be done in a GRC tool. GRC tools significantly streamline the PCI DSS compliance process by providing a centralized platform for managing all related activities. 

GRC software like StandardFusion, helps organizations automate routine tasks such as data collection, and reporting, reducing the manual workload and minimizing the risk of human error. Additionally, GRC tools enhance risk management by identifying vulnerabilities and prioritizing efforts. They also simplify audit preparation through comprehensive documentation and audit trails.

By optimizing resource allocation and fostering collaboration across departments, StandardFusion’s GRC compliance features not only ensures your company can adhere to PCI DSS standards but contributes to your overall organizational efficiency and saves you time. 

Key Takeaways

The updated PCI DSS v4 represents a significant milestone in the ongoing effort to strengthen data security. By understanding the key provisions and requirements of the framework, businesses can navigate compliance challenges more effectively. Moreover, it enhances their privacy security readiness.

Additionally:

• The updated framework provides a comprehensive roadmap for organizations to enhance their data privacy. Ensuring they are well protected against potential threats.

• PCI DSS v.4.0 is designed to be adaptable, and less of a one-size fits all approach. This ensures companies can achieve compliance in the way that works for them.

• Achieving compliance with the updated framework means that organizations build trust with consumers, fostering a secure business environment.

Incorporating PCI DSS v4.0 into your data security strategy is not just about meeting standards. It’s about setting a new benchmark for data security, resilience, and trust in an increasingly digital world.

Ready to streamline your compliance processes with a robust and user-friendly solution?