Non-Compliant Phone Payments? The Costly Consequences of PCI DSS 4.0 Non-Compliance

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February 5th, 2025

Deadline: 31st March 2025

If your business takes phone payments, PCI DSS compliance isn’t just a recommendation-it’s a requirement. The risks of non-compliance go far beyond just a slap on the wrist. Payment processors like Visa and Mastercard impose fines ranging from £4,000 to £80,000, and that’s just the beginning.

In a worst-case scenario, a non-compliant business that suffers a data breach could also face GDPR violations, lawsuits, and even the loss of their ability to process card payments. For small businesses, this can be devastating.

The Penalties of PCI DSS Non-Compliance

Ignoring PCI DSS compliance could cost your business in multiple ways:

1. Fines from Payment Processors

Major card brands (Visa, Mastercard, etc.) impose fines between £4,000 and £80,000 on businesses that fail to meet PCI DSS requirements—especially if a data breach occurs.

2. GDPR Violations & Lawsuits

A data breach due to non-compliance can mean violating GDPR regulations, exposing your business to legal action. Customers, banks, and regulators can sue for negligence in handling sensitive cardholder data.

3. Loss of Ability to Process Card Payments

Non-compliance puts your merchant account at risk. Payment processors or banks can terminate your ability to accept card payments, which could shut your business down overnight.

4. Increased Transaction Fees & Costly Audits

If a non-compliant business wants to continue processing payments, they may face:

Higher transaction fees
Stricter security requirements
Expensive audits before regaining approval

5. Reputational Damage & Business Closure

Customers expect businesses to protect their payment details. A single data breach can erode trust, damage your reputation, and lead to lost customers. For SMEs, this could mean the end of the business.

Taking Phone Payments? PCI Compliance Is Essential

With the new PCI DSS 4.0 requirements, businesses handling phone payments must ensure:

Secure transmission: Encrypt payment details to prevent interception.
No sensitive data storage: Never record CVV numbers or authentication data.
Strict access controls: Limit payment handling to authorised personnel only.

How to Stay Compliant & Avoid Fines

At Knowall IT, we’ve partnered with PayGuard to make PCI DSS 4.0 compliance simple. PayGuard removes your business from PCI DSS scope, securing phone payments without the headache.

Don’t risk costly fines or losing the ability to take card payments. Contact us today to ensure your business is PCI DSS compliant before it’s too late.