Storing Card Data: What’s Allowed?

TL;DR

No! A card issuing company cannot store CVV numbers, expiry dates, or the full 16-digit card number. It’s a massive security risk and breaks industry rules (PCI DSS). They can store limited data for legitimate purposes like fraud prevention, but it must be heavily protected.

Why You Can’t Store Card Data

Storing sensitive card information makes you a target for hackers. Even with the best security measures, breaches happen. If this data is stolen, customers are at risk of fraud and your company faces huge fines and reputational damage. The Payment Card Industry Data Security Standard (PCI DSS) sets strict rules to prevent this.

What Data *Can* Be Stored?

Card issuing companies can store some card data, but it’s limited and requires strong security:

• Tokenized Card Numbers: Replace the actual card number with a unique token. This token is useless to hackers without access to your secure system.
• Masked PAN (Primary Account Number): Store only the first 6 and last 4 digits of the card number (e.g., 512345******1234). This helps identify cards for fraud checks but doesn’t reveal the full number.
• Expiry Date (with restrictions): Can be stored if absolutely necessary, but should be encrypted and access tightly controlled. Consider using tokenization instead.

Step-by-Step Guide to Secure Card Data Handling

1. Never Store CVV Numbers: This is a hard rule. PCI DSS explicitly prohibits storing the card verification value (CVV).
2. Tokenization: Implement tokenization for all transactions. This replaces sensitive data with non-sensitive equivalents.

   # Example Tokenization Process (Conceptual)

3. Masking PANs: If you need to store part of the card number, mask it appropriately.

   card_number = "5123456789012345";
   masked_card_number = card_number.substring(0, 6) + "******" + card_number.substring(12);
   // masked_card_number will be: 512345******1234

4. Encryption: Encrypt any sensitive data you *must* store using strong encryption algorithms (e.g., AES-256).

   # Example Encryption (Conceptual - Python)

5. Access Control: Limit access to card data to only those employees who absolutely need it.
   • Use strong passwords and multi-factor authentication.
   • Regularly review access logs.
6. Secure Your Systems: Implement robust security measures:
   • Firewalls
   • Intrusion detection systems
   • Regular vulnerability scanning and penetration testing
   • Anti-malware software
7. PCI DSS Compliance: Understand and comply with the PCI DSS requirements. This involves regular audits and assessments.
   Visit the PCI Security Standards Council website for more information.

Consequences of Non-Compliance

• Fines: Significant financial penalties can be imposed by card networks.
• Reputational Damage: Loss of customer trust and brand value.
• Legal Liabilities: Potential lawsuits from customers affected by data breaches.