Understanding PCI DSS, PSD2, and AML in Payment Processing: A Practical Guide: By Nikunj Gundaniya
That's where PCI DSS, PSDS2, and AML come in. These compliance standards aren't just check boxes; they are tools that protect your business and build confidence.
In this guide, you'll understand what digital payment security is and what these regulations mean, how they impact your payment operations, and what you need to do to meet them.
Most importantly, you'll see how the right digital payment solution can make compliance simpler and more effective.
So, let's dig in.
Why compliance matters in digital payment processing
Staying compliant isn't a choice. It's your way of showing your customers that their money and data are safe. So let's dig into the compliance part in more detail:
Protects trust and prevents fraud
Payment compliance gives your customers peace of mind. They want to know that their personal and financial data is secure. When you follow compliance rules, you reduce the risk of fraud, chargebacks, and penalties. It also shows regulators that you're serious about safety.
Non-compliance, on the other hand, can lead to data breaches and legal troubles. That's why digital payment security should always be a top priority in your business.
PCI DSS: Safeguarding cardholder data
If you handle card payments, PCI DSS compliance is non-negotiable. It keeps your customers' card details safe and your systems strong.
What is PCI DSS?
PCI DSS stands for Payment Card Industry Data Security Standard. It applies to any business that stores, processes, or transmits cardholder data. Whether you're a bank or a fintech company offering e-wallet services, you must meet PCI DSS standards.
This standard was created by major card brands like Visa and Mastercard to protect card data from theft.
Key PCI DSS requirements for you
You need to meet several requirements, but here are the most critical ones:
Build and maintain a secure network
Protect stored cardholder data
Use strong access control measures
Regularly test your security systems
Maintain a policy that addresses information security
These steps may sound technical, but with the right digital payment partner, they become easier to manage.
How PCI DSS affects your digital payment operations
When you're PCI DSS compliant, you reduce the risk of costly breaches. You also improve customer trust, especially when they use your wallet or e-wallet solutions.
More importantly, it helps you future-proof your business. Compliance today means fewer disruptions tomorrow.
PSD2: Enabling secure and open payments
PSD2 is changing how you offer payment services. It pushes you to be more secure, transparent, and open.
Understanding PSD2 in simple terms
PSD2 drives innovation. It encourages banks and financial institutions like yours to open up your systems through secure APIs. This allows you to connect your customers' accounts to trusted third-party services while keeping full control. It helps you offer smarter, faster, and more personalized financial experiences without compromising security.
It also brings in stronger customer authentication (SCA) to prevent fraud during digital payments. While it's European, its impact is global, especially if you deal with cross-border payments.
Why PSDS2 is important for banks
PSD2 drives innovation. It encourages banks and financial institutions like yours to open up their systems through APIs. That means your customers can connect their accounts to third-party services easily and securely.
It also demands stronger verification steps before approving transactions. This adds a layer of protection to every payment.
Why PSD2 compliance matters to your business
By complying with PSD2, you gain more than legal coverage. You offer your customers better experiences. You reduce fraud. And you create opportunities to expand services using open banking models.
The result? More trust. More innovation. More growth.
AML compliance: Fighting financial crime
Criminals always look for ways to misuse payment systems. AML compliance helps you stop them before they succeed.
What is AML in payment processing?
AML stands for Anti-Money Laundering. It's a set of rules and practices designed to detect, prevent, and report financial crimes. Banks and payment providers must follow these rules to stop money laundering and terrorist financing.
The Financial Action Task Force (FATF) sets global AML guidelines. Most local laws follow their recommendations.
Core AML requirements you must follow
Here's what you need to put in place:
Know Your Customer (KYC) checks
Real-time transaction monitoring
Risk-based assessments
Suspicious Activity Reports (SARs)
These steps help you identify and stop illegal transactions before they harm your business.
How AML compliance protects your business
AML compliance protects your institution from reputational damage and heavy fines. It also builds trust with regulators, customers, and partners.
When your platform has built-in AML compliance tools, you spend less time worrying and more time serving your customers.
Bringing it all together: Why an integrated approach matters
Each compliance framework is important on its own. But when combined, they create a powerful layer of protection.
The synergy between PCI DSS, PSD2, and AML
PCI DSS protects cardholder data. PSD2 strengthens customer authentication. AML stops financial crime. Together, they create a secure, open, and trustworthy payment system.
By following all three, you create a system that is efficient, compliant, and ready for future challenges.
Real-world benefits for your institution
When you follow an integrated compliance strategy, you:
Minimize the risk of fraud
Speed up payment processing
Improve the customer experience
Reduce the cost of compliance over time
And most importantly, you protect your brand's reputation in the market.
How the right digital payment solution helps you stay compliant
Staying compliant can be complex. But the right technology simplifies it.
Seamless compliance with modern infrastructure
You need a payment solution that is built with compliance in mind. It should offer:
Real-time monitoring tools
Strong API security
Automated KYC and AML checks
Support for PSD2 authentication methods
End-to-end PCI DSS card data protection
With these features, you stay one step ahead of regulators and threats.
Focus on security, interoperability, and transparency
A powerful solution ensures your customers can send money anytime, anywhere, and in any way they want. But it also ensures every transaction is secure, compliant, and transparent.
At DigiPay.Guru, your payments are protected from start to finish. You get full visibility, built-in compliance, and the freedom to scale without friction.
Conclusion
Payment compliance is no longer just a legal obligation. It's a strategic advantage. When you align with PCI DSS, PSD2, and AML, you protect your customers and position your business for long-term success.
To simplify compliance and strengthen your digital payment services, choose a platform built with security, speed, and transparency at its core. Let technology handle the complexity so you can focus on growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Powys County Times
14 hours ago
- Powys County Times
Welshpool shortlisted for Let's Celebrate Towns award
Welshpool has been shortlisted in the national Let's Celebrate Towns awards. The town was nominated in the Connectivity category, which aims to recognise efforts in improving digital and physical infrastructure to create a more accessible town. Richard Williams, town clerk, said: "To be recognised at this level is a huge honour for Welshpool. "Our entry focuses on our efforts to enhance community access to information and services, including our proposal to install interactive touchscreen noticeboards around the town to help residents and visitors connect with local events, transport, business and more." Welshpool is one of 50 towns across the UK to be shortlisted, with projects such as eBike schemes, public art installations, free Wi-Fi, and digital communication hubs. The award aim to highlight how councils, businesses, and communities are working in partnership to support growth. Winners will be announced at a ceremony at the House of Lords this month. Each winner will receive £20,000 to invest in a community initiative. Ian Harvey, head of the Institute of Place Management and a returning judge, said: "It's a real privilege to return as a judge for the Visa Let's Celebrate Towns initiative. "At the Institute of Place Management, we see that effective place leadership relies not just on passion, but on having the right skills and knowledge to deliver real change. "This competition is a powerful platform to share learning, celebrate success, and showcase the creativity and commitment of local government, businesses, and communities working to improve their towns across the UK. "It is an honour to be involved." Mandy Lamb, managing director for the UK & Ireland at Visa, said: "We're excited to champion towns that are propelling local economic growth and prosperity in the UK, with the goal of unlocking even more potential in the future. "This year of 'Let's Celebrate Towns' has attracted a record number of entries, highlighting the passion and creativity in our communities. "Anyone on the shortlist should feel immensely proud of their achievement. "I can't wait to join the judging panel to explore all the inspiring initiatives and achievements across the nation." Helen Dickinson, CEO of the British Retail Consortium, said: "Through Let's Celebrate Towns, we've seen impressive entries that demonstrate creative solutions and resilience.
Finextra
a day ago
- Finextra
Understanding PCI DSS, PSD2, and AML in Payment Processing: A Practical Guide: By Nikunj Gundaniya
Belonging to a fintech field, you know how much trust matters. Yes, trust is everything. And if your customers don't feel safe while making payments, they won't return. You know this already. But what's often unclear is how to stay secure and compliant in a space that's constantly changing. That's where PCI DSS, PSDS2, and AML come in. These compliance standards aren't just check boxes; they are tools that protect your business and build confidence. In this guide, you'll understand what digital payment security is and what these regulations mean, how they impact your payment operations, and what you need to do to meet them. Most importantly, you'll see how the right digital payment solution can make compliance simpler and more effective. So, let's dig in. Why compliance matters in digital payment processing Staying compliant isn't a choice. It's your way of showing your customers that their money and data are safe. So let's dig into the compliance part in more detail: Protects trust and prevents fraud Payment compliance gives your customers peace of mind. They want to know that their personal and financial data is secure. When you follow compliance rules, you reduce the risk of fraud, chargebacks, and penalties. It also shows regulators that you're serious about safety. Non-compliance, on the other hand, can lead to data breaches and legal troubles. That's why digital payment security should always be a top priority in your business. PCI DSS: Safeguarding cardholder data If you handle card payments, PCI DSS compliance is non-negotiable. It keeps your customers' card details safe and your systems strong. What is PCI DSS? PCI DSS stands for Payment Card Industry Data Security Standard. It applies to any business that stores, processes, or transmits cardholder data. Whether you're a bank or a fintech company offering e-wallet services, you must meet PCI DSS standards. This standard was created by major card brands like Visa and Mastercard to protect card data from theft. Key PCI DSS requirements for you You need to meet several requirements, but here are the most critical ones: Build and maintain a secure network Protect stored cardholder data Use strong access control measures Regularly test your security systems Maintain a policy that addresses information security These steps may sound technical, but with the right digital payment partner, they become easier to manage. How PCI DSS affects your digital payment operations When you're PCI DSS compliant, you reduce the risk of costly breaches. You also improve customer trust, especially when they use your wallet or e-wallet solutions. More importantly, it helps you future-proof your business. Compliance today means fewer disruptions tomorrow. PSD2: Enabling secure and open payments PSD2 is changing how you offer payment services. It pushes you to be more secure, transparent, and open. Understanding PSD2 in simple terms PSD2 drives innovation. It encourages banks and financial institutions like yours to open up your systems through secure APIs. This allows you to connect your customers' accounts to trusted third-party services while keeping full control. It helps you offer smarter, faster, and more personalized financial experiences without compromising security. It also brings in stronger customer authentication (SCA) to prevent fraud during digital payments. While it's European, its impact is global, especially if you deal with cross-border payments. Why PSDS2 is important for banks PSD2 drives innovation. It encourages banks and financial institutions like yours to open up their systems through APIs. That means your customers can connect their accounts to third-party services easily and securely. It also demands stronger verification steps before approving transactions. This adds a layer of protection to every payment. Why PSD2 compliance matters to your business By complying with PSD2, you gain more than legal coverage. You offer your customers better experiences. You reduce fraud. And you create opportunities to expand services using open banking models. The result? More trust. More innovation. More growth. AML compliance: Fighting financial crime Criminals always look for ways to misuse payment systems. AML compliance helps you stop them before they succeed. What is AML in payment processing? AML stands for Anti-Money Laundering. It's a set of rules and practices designed to detect, prevent, and report financial crimes. Banks and payment providers must follow these rules to stop money laundering and terrorist financing. The Financial Action Task Force (FATF) sets global AML guidelines. Most local laws follow their recommendations. Core AML requirements you must follow Here's what you need to put in place: Know Your Customer (KYC) checks Real-time transaction monitoring Risk-based assessments Suspicious Activity Reports (SARs) These steps help you identify and stop illegal transactions before they harm your business. How AML compliance protects your business AML compliance protects your institution from reputational damage and heavy fines. It also builds trust with regulators, customers, and partners. When your platform has built-in AML compliance tools, you spend less time worrying and more time serving your customers. Bringing it all together: Why an integrated approach matters Each compliance framework is important on its own. But when combined, they create a powerful layer of protection. The synergy between PCI DSS, PSD2, and AML PCI DSS protects cardholder data. PSD2 strengthens customer authentication. AML stops financial crime. Together, they create a secure, open, and trustworthy payment system. By following all three, you create a system that is efficient, compliant, and ready for future challenges. Real-world benefits for your institution When you follow an integrated compliance strategy, you: Minimize the risk of fraud Speed up payment processing Improve the customer experience Reduce the cost of compliance over time And most importantly, you protect your brand's reputation in the market. How the right digital payment solution helps you stay compliant Staying compliant can be complex. But the right technology simplifies it. Seamless compliance with modern infrastructure You need a payment solution that is built with compliance in mind. It should offer: Real-time monitoring tools Strong API security Automated KYC and AML checks Support for PSD2 authentication methods End-to-end PCI DSS card data protection With these features, you stay one step ahead of regulators and threats. Focus on security, interoperability, and transparency A powerful solution ensures your customers can send money anytime, anywhere, and in any way they want. But it also ensures every transaction is secure, compliant, and transparent. At your payments are protected from start to finish. You get full visibility, built-in compliance, and the freedom to scale without friction. Conclusion Payment compliance is no longer just a legal obligation. It's a strategic advantage. When you align with PCI DSS, PSD2, and AML, you protect your customers and position your business for long-term success. To simplify compliance and strengthen your digital payment services, choose a platform built with security, speed, and transparency at its core. Let technology handle the complexity so you can focus on growth.
BBC News
2 days ago
- BBC News
'I'm British but I can't live in my own country with my partner'
The UK government is facing calls to scrap an immigration policy which puts "untold stress" on British citizens who choose to marry or cohabit with someone from and settled residents wanting to sponsor their partner's visa application must earn a minimum income of £29,000 or have savings of £88, in Bristol and Stroud are urging the government to scrap the requirement which was brought in by the Conservatives to curb migration."What the government does next will make or break many families who just want to be together," said Caroline Coombs of the campaign group Reunite Families UK.A Home Office spokesperson said the minimum income policy "needs to balance a respect for family life while also maintaining the UK's economic stability" and it is considering findings from a Migration Advisory Committee review. For Rebecca Gray, 32, from Stroud in Gloucestershire, scrapping the policy would mean she could move back to the UK with her Turkish husband."I don't think people have any idea of how much harm the visa rules cause," she with a UK business but unable to meet the minimum income requirement, she has been living in Turkey for the past four with her husband, Baran, 31, they have been saving to apply for a visa through the savings said: "We're holding off having children because we've been so focused on saving money to get him a visa."Ms Gray said the couple has stronger family ties to the UK as her husband has lost both of his parents."We want to be close to family. Between us, we only have one parent left, that's my mum. "I'm forced to live thousands of miles away from my family if I want to be with my husband."Some countries, like the UK, set a minimum income requirement for a spouse while other countries, like France and the Netherlands, align it to their national minimum wage, the UK sets it at a higher Migration Observatory estimates that roughly half of the UK working population earn under £29,000. 'My kids think I'm the man in the phone' For a large number of applicants, the minimum income policy is not the only financial fees and NHS surcharges can cost more than £7,000 for a five-year route to settlement, excluding any legal fees."It's unfair that only the wealthy can bring their partner here," said Leighton Allen, from Worcester. Mr Allen, 30, works in retail and said he cannot meet the salary threshold to bring his Tanzanian fiancée and his two young children to the said he tries to see them as much as possible, which can be three weeks in a year."All I want is to be a father to my children but I feel that choice is taken away from me. I'm financially supporting them but they don't see me."He added: "They think I'm in the man in the phone."The minimum income requirement was first introduced in 2012 to ensure the British partner or settled resident earned enough to financially support their foreign partner in the UK without resorting to public funds. Last year, the salary threshold increased for the first time, from £18,600 to £29,000. 'I can't come home to care for my parents' Following Brexit and the end of free movement between the UK and EU countries, some British citizens who had been living abroad - like Sarah Douglas - are also finding it hard to return to the UK with their 42-year-old lives in Italy with her husband Matteo and their three wants to move back home to Scotland with her family to be close to her elderly parents, and help care for to follow the minimum income route, Ms Douglas would need to return without her Italian husband and accrue six months of UK payslips to apply for a spouse visa for him. "I could work as a teacher in the UK and my husband is a software engineer who would find work easily. "We're financially stable, we don't rely on any support, but we're able to do that because we're together," she avoid separation, they have been struggling to save £88,500 in order to apply via the savings route."Saving this much money is putting financial strain on us and it's taking years, but we feel it's our only option."She added: "If we were forced to separate, it would have a huge impact on us as a family. I've seen what that does to children and I don't want to put my children through that."A report by children's charity Coram found children in separated families showed signs of stress, anxiety and inability to focus in school. It also said that children living in families affected by the current minimum income requirement were likely to experience exacerbated challenges and poor mental report was commissioned by Reunite Families UK, a not-for-profit representing families affected by the UK family visa co-founder and executive director, Caroline Coombs, said: "We have nearly 6,000 couples and families who are suffering on a daily basis."People feel completely unheard by their own government and they can't understand why they can't be here with their loved ones," she added. Earlier this month, the Home Office said it would examine findings from a Migration Advisory Committee review and issue a response in due experts suggested lowering the current threshold and gave a number of possible said, for example, lowering it to £24,000 would help ease family reunification and increase net migration by roughly 1-3%.A Home Office spokesperson said: "We understand the Minimum Income Requirement for family visas needs to balance a respect for family life while also maintaining the UK's economic stability, which is why the Home Secretary commissioned the independent Migration Advisory Committee to undertake a review."We are now considering its findings and will respond in due course." Migration is 'too high' Conservative MP for Kent, Katie Lam, who is opposition assistant whip, defended an increase in the minimum income requirement."Migration has been far too high for the last two decades and remains so," she said."The public has consistently asked successive governments to lower migration. "The last (Conservative) government promised to do exactly this, but like the governments before it, it did not deliver it."At a parliamentary debate about the family visa income requirement in January, she said: "The question is not should British citizens be able to bring their foreign spouses to the UK. "The question is, does it benefit the country as a whole for British citizens on lower salaries to bring foreign spouses here who are unable to get a visa any other way?"But co-leader of the Green Party and Bristol Central MP, Carla Denyer, who has called the minimum income requirement a 'tax on love', - and wants it scrapped."The Home Office is failing not just people who are moving to the UK but British people who already live here and just want to enjoy family life in peace," she said. "The minimum income requirement puts untold stress on couples and families and it should be scrapped entirely."Family doctor and Labour MP for Stroud, Simon Opher, sponsored an exhibition in the Houses of Parliament last week which showcased the human impact of the family visa rules. "We're splitting up people who love each other, splitting families who are the bedrock of our society, and I think it's the wrong policy," he said.
