The Payment Card Industry Data Security Standard (PCI DSS) is a set of security requirements designed to protect cardholder data and ensure secure payment transactions. Established by the PCI Security Standards Council (PCI SSC), PCI DSS applies to any organization that processes, stores or transmits credit card information. This includes businesses of all sizes, from small retailers to large enterprises and financial institutions.
Compliance with PCI DSS is not optional for companies handling payment data. Failure to meet PCI DSS requirements can result in steep non-compliance fees, ranging from $5,000 to $100,000 per month, depending on the severity of violations. These penalties are imposed by acquiring banks and payment processors, not the PCI SSC. In addition to fines, non-compliance can lead to increased transaction fees, security breach liabilities, and potential lawsuits.
For organizations developing software that interacts with payment data, ensuring PCI DSS compliance is essential to avoiding financial penalties and maintaining trust with customers. A proactive security approach—integrating compliance into software development—helps mitigate risks before they turn into costly mistakes.
What Are PCI Non-Compliance Fees?
PCI non-compliance fees are financial penalties imposed by acquiring banks and payment processors on businesses that fail to meet PCI DSS requirements. These fees are not directly enforced by the PCI Security Standards Council (PCI SSC); instead, banks and payment providers charge them to encourage businesses to comply with security regulations and reduce risks associated with handling payment card data.
Any organization that processes, stores, or transmits credit card data—including retailers, e-commerce platforms, financial institutions, and software vendors—must comply with PCI DSS. If they fail to do so, they may be subject to non-compliance fees, which can escalate over time if security issues remain unresolved.
Common Triggers for PCI Non-Compliance Fees
Businesses may be fined for failing to meet one or more PCI DSS security requirements. Some of the most common violations include:
- Storing unencrypted cardholder data (e.g., credit card numbers, CVV codes) in databases, logs, or files.
- Weak or missing network security controls, such as unpatched vulnerabilities, outdated software, or lack of firewalls.
- Failure to conduct regular PCI audits and submit required compliance reports.
- Using non-compliant payment applications that do not meet PCI DSS security standards.
- Lack of multi-factor authentication (MFA) and access control for systems handling payment data.
PCI non-compliance fees are designed to pressure businesses to improve their security posture. However, failing to act quickly can result in escalating fines, increased scrutiny from regulators, and more significant financial risks, such as costly forensic audits or the termination of their ability to process credit card payments.
PCI Compliance Fees vs. PCI Non-Compliance Fees
When handling payment card data, businesses must choose between investing in PCI compliance or facing non-compliance penalties. The key difference between these costs lies in their purpose and financial impact. PCI compliance fees are a proactive investment, whereas PCI non-compliance fees are reactive penalties imposed on businesses that fail to meet PCI DSS requirements.
While some businesses may hesitate at the costs associated with compliance, the reality is that investing in security upfront is far more manageable than dealing with the consequences of non-compliance. Paying for audits, security tools, and training ensures that payment data remains protected. In contrast, non-compliance fees increase financial liabilities and expose businesses to more significant risks, including data breaches, legal repercussions, and even the loss of payment processing capabilities.
What Are PCI Compliance Fees?
PCI compliance fees are the costs businesses pay to adhere to PCI DSS security requirements and maintain a secure payment environment. These fees vary based on factors such as business size, transaction volume, and the level of compliance required. Larger enterprises processing higher volumes of transactions typically have stricter requirements, such as a Qualified Security Assessor (QSA) audit, while smaller businesses may only need to complete a Self-Assessment Questionnaire (SAQ).
The costs associated with PCI compliance generally cover:
- Annual security assessments and audits to validate compliance.
- Vulnerability scans and penetration testing to identify and mitigate security risks.
- Implementation of security controls like encryption, firewalls, and access management.
- Employee training programs to ensure staff follow secure payment processing practices.
While compliance fees require ongoing investment, they are predictable and contribute to long-term security, reducing the risk of breaches and financial penalties.
What Are PCI Non-Compliance Fees?
PCI non-compliance fees, on the other hand, are penalties imposed by acquiring banks or payment processors on businesses that fail to meet PCI DSS requirements. These are not one-time fines but recurring charges that increase when a business remains non-compliant.
Businesses may be subject to non-compliance fees if they:
- Fail to submit PCI DSS compliance reports or assessments.
- Lack of necessary security controls, such as encryption and firewalls.
- Use outdated or non-compliant payment software.
- Experience a security breach due to non-compliance.
Unlike compliance fees, which are an investment in security, non-compliance fees are a financial consequence of failing to meet security standards. They can escalate over time, leading to even more significant financial and reputational risks.
By prioritizing compliance, businesses avoid unnecessary financial burdens and strengthen their security posture from the start.
How Much Do PCI Non-Compliance Fees Cost?
PCI non-compliance fees can range from thousands to hundreds of thousands of dollars, depending on the severity and duration of non-compliance. These fees are typically imposed monthly by acquiring banks or payment processors until the business resolves its compliance issues. The longer a company remains non-compliant, the more expensive these penalties become, often escalating in severity.
The actual cost of PCI non-compliance varies based on several factors, including:
- Business Size and Transaction Volume: Larger companies processing higher volumes of transactions are held to stricter security requirements and may face steeper penalties.
- Duration of Non-Compliance: The longer a business fails to meet PCI DSS requirements, the higher the accumulated fines, which may increase monthly.
- Security Risk Level: Organizations with weak security controls or a history of security breaches may face harsher penalties and greater scrutiny from payment processors.
- Failure to Respond to Compliance Notices: Ignoring warnings or delaying corrective actions can lead to higher fines and additional consequences, such as increased transaction fees.
In addition to direct non-compliance fines, businesses may encounter other financial consequences that further increase costs. Payment processors may charge higher transaction fees to businesses that fail to meet security standards, making every credit card transaction more expensive. If a data breach occurs due to non-compliance, the costs can be even more severe, including forensic investigations, legal settlements, regulatory fines, and customer compensation. Repeated violations can ultimately revoke payment processing privileges, effectively cutting off a business’s ability to accept credit card payments.
Non-compliance fees are not just a financial burden but a warning sign that a business is vulnerable to security risks. Organizations that proactively address compliance gaps avoid these fines and strengthen their overall security posture, reducing the risk of data breaches and financial losses in the long run.
Consequences of PCI Non-Compliance
Failing to adhere to PCI DSS requirements can lead to significant repercussions for businesses. Non-compliance results in financial penalties and exposes organizations to security breaches, legal challenges, and reputational harm.
Financial Penalties: Non-compliant businesses may incur monthly fines ranging from $5,000 to $100,000, depending on factors such as the size of the organization and the duration of non-compliance.
Security Breaches: Without proper compliance, organizations are more vulnerable to data breaches, compromising sensitive customer information and leading to costly remediation efforts.
Legal Challenges: Non-compliance can result in legal actions, including lawsuits and regulatory penalties, further escalating financial and operational burdens.
Reputational Harm: A single compliance failure can erode customer trust, leading to loss of business and long-term damage to the brand’s reputation.
In summary, PCI non-compliance exposes businesses to a range of risks that can have lasting impacts on their financial health and market standing.
How to Avoid PCI Non-Compliance Fees
Avoiding PCI non-compliance fees starts with understanding and adhering to PCI DSS requirements. Businesses that proactively implement security best practices can prevent fines, reduce security risks, and maintain customer trust.
- Stay Informed About PCI DSS Requirements – PCI standards evolve, so businesses must stay updated on compliance requirements to avoid violations.
- Conduct Regular Security Assessments – Self-assessment questionnaires (SAQs), quarterly vulnerability scans, and annual penetration testing help identify and fix security gaps.
- Implement Strong Security Controls – Encryption, access controls, firewalls, and intrusion detection systems protect payment data and prevent unauthorized access.
- Use PCI-Compliant Payment Processing Solutions – Choosing certified payment providers and secure payment gateways helps ensure compliance without handling sensitive data directly.
- Train Employees on Security Best Practices—Educating staff on secure payment processing, phishing risks, and compliance requirements ensures they can recognize threats and prevent costly mistakes.
- Address Compliance Gaps Promptly – If notified of non-compliance, businesses should take corrective action immediately to avoid escalating fines and security risks.
By proactively maintaining PCI DSS compliance, businesses can avoid costly fines, protect customer data, and strengthen their overall security posture.
Conclusion
PCI non-compliance fees are an unnecessary financial burden that businesses can avoid by proactively meeting PCI DSS requirements. Beyond the fines, non-compliance exposes organizations to security breaches, legal penalties, and reputational damage—all of which can have long-term consequences.
Investing in compliance may seem like an added expense, but it is far more manageable than non-compliance costs, which can lead to multi-million dollar fines, security breaches, and reputational damage that takes years to repair By staying informed, conducting regular security assessments, implementing strong security controls, and training employees, businesses can maintain compliance and protect their operations and customer data.
In the ever-evolving landscape of cybersecurity, compliance is not just a regulatory obligation—it’s a critical step in safeguarding business integrity and ensuring trust in payment transactions.
Avoid PCI Non-Compliance Fees with SD Elements
PCI non-compliance can lead to fines of up to $100,000 per month, increased transaction costs, and severe reputational damage. SD Elements helps organizations integrate PCI DSS compliance into the software development lifecycle, reducing security risks and avoiding costly penalties.
✅ Automate PCI DSS compliance within your DevSecOps workflows
✅ Identify and fix security gaps early in development
✅ Ensure continuous compliance with real-time monitoring
Don’t risk non-compliance.