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Updated July 14, 2008 Many ecommerce web hosting companies are now offering services that provide professional assistance in ahieving Payment Card Industry (PCI) Compliance. Rather than putting pieces of software and hardward together a hosting service can accommodate a service whereby all is packaged together for the merchant's convenience. PCI Compliance is based on a set of security tools that provide the basis to insure compliance with the new banking regulation which applies to online businesses that accept, process, or store credit card information. In our opinion, and we have staff with 20+ experience in computer technology and security, the compliance is only a polictical tool so that Visa and Mastercard companies (which are really an association of the 5000+ banks) to retain control over their industry and not allow the government to interfere with their domination of the credit card industry. The self declared regulations and the penalties and punishments are forcing smaller businesses to suffer the costs of these regulations and allow wealthier companies to consolidate their forces and dominate their market at the expense of the little guy. This is in our opinion anti-competition since small companies do not have the money to pay for security audits and other expenses associated to these mandates. If you do not adhere to their demands, then you are subject to penalties and sanctions by banks - yes, sanctions. So, you must meet the demands of the banking industry or you may feel that you are an evil dictator building evil weapons of destruction and being sanctioned for wanting to sell your products and services on the Internet. Out of every $100 spent with a credit card, about $1 goes to VISA Association and about $1 goes to the issuing bank that issued the credit card to the consumer or business owner. Total credit card transactions in US during 2007 was nearly $1.4 trillion.
Based on these numbers, VISA's revenue from fees collected from credit card use topped $70 billion (1% x 50% x $1.4 trillion). But remember 1% also goes to the issuing bank (which is also a member of the association - so therefore this banks actually get paid directly and indirectly - twice). Top 5 Issuing Credit Card Companies
Therefore to consolidate control of their industry and to make certain that the government does not get involved in their affairs, PCI Compliance Regulation was introduced that has created so much frustration and headaches for small businesses that want to sell their products and services online. We hear from these business every day and sympathize with their anguish trying to adhere to a mandate by those companies strong enough to bully and force compliance without any outrage by the media and the government against this 'small-business' punishing politically-motivated regulation. However, here we will attempt to help small businesses as best as we can to comply and survive this aparthied. The PCI regulation requires the following compliance:
There are however some hosting companies that are uniting to establish a system that makes it easier and more convenient for online merchants. These hosting companies should be commended for their efforts to help establish a business-friendly service even though it is being provided with a small fee attached. Good Luck.
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