New Security Measures Every Office Manager Needs to Know About

 

You may have heard PCI DSS referred to as the gold standard for protecting patients’ financial records, helping provide a framework for how to keep your practice safe. What you may not know is that there will soon be a new version—and it may greatly impact your billing process.

The transition from Payment Card Industry Data Security Standard (PCI DSS) version 3.2.1 to PCI DSS version 4.0 marks a significant shift in how businesses—especially those in healthcare sectors like dental practices—must manage credit card data security.

Full compliance with PCI DSS 4.0 is required by March 2025, and dental practices handling patient billing need to act swiftly to meet these standards.

One recent study shows that a wide gamut of organizations still lack a clear understanding of PCI DSS 4.0 requirements. Alarmingly, some haven’t even started implementing the compulsory changes—putting them at risk of compliance issues, potential fines, and increased vulnerability to data breaches.

This concern is further heightened by the healthcare sector’s susceptibility to cyberattacks, which saw a 128% increase in the U.S. in 2023. Dental practices handling sensitive patient and financial data are particularly attractive targets for cybercriminals.

Understanding and implementing PCI DSS 4.0 is essential to protect patient payment information and avoid financial fallout from a potential breach. These updated standards help dental offices build and maintain secure networks, protect stored and transmitted data through encryption, and manage vulnerabilities to prevent malicious attacks on their systems.

PCI DSS 4.0 also introduces stringent access control measures, which include limiting access to cardholder data, authenticating users, and controlling physical access to systems. Below are some of the most important updates to be aware of.

Updated SAQs

The migration to PCI DSS 4.0 includes changes to self-assessment questionnaires (SAQs) that reflect new security protocols. The revised SAQs now closely mirror the language in PCI security standards, requiring more detailed reporting to meet the updated requirements.

While these additional requirements are considered best practice today, they will become mandatory by March 31, 2025. Billing departments should prioritize understanding and completing these new SAQs to ensure compliance.

Understanding the Difference Between PCI DSS and HIPAA Compliance

For dental practices, it’s critical to differentiate between PCI DSS and HIPAA compliance. HIPAA safeguards patient medical records and personal health information, but it doesn’t cover payment data, which falls under PCI compliance. Thus, meeting PCI DSS standards is essential in addition to HIPAA compliance regulations.

Remaining PCI Compliant

Unlike a one-time upgrade, PCI compliance is a continuous process aimed at improving consumer protection through 12 specific requirements. These include measures like using firewalls, enforcing password protection, and encrypting transmitted cardholder data.

By following these protocols, billing departments can help prevent unauthorized access to card data, reducing risk for your practice and patients alike.

Risks of Noncompliance

Noncompliance with PCI DSS 4.0, while not illegal, can lead to severe consequences, especially if a data breach occurs at your practice. Fines for noncompliance range from $20 to $5,000 or more monthly, depending on the severity of the breach.

In the case of a data breach, noncompliant practices may also be held financially responsible for reissuing cards and covering fraudulent charges. This financial burden, coupled with potential reputational damage, can severely impact the dental practice.

A Checklist for Dental Practices:

1. Become familiar with PCI DSS 4.0: Review the 12 updated PCI DSS requirements and understand how they apply to your payment processing activities.
2. Update SAQs: Ensure new self-assessment questionnaires align with PCI DSS 4.0 requirements.
3. Enhance data security measures: Implement strong access control, encryption, and firewall protections for cardholder data.
4. Regularly monitor and test networks: Schedule routine checks to ensure security protocols are followed, minimizing vulnerability to breaches.
5. Optimize processing fees: Review monthly statements closely and seek opportunities to negotiate or reduce processing fees where possible.

Not sure if you are compliant?

Noncompliance fees can be found as an additional charge on monthly statements, likely with other excessive and avoidable  processing fees, which already affect 72% of businesses.

In 2023 alone, merchants paid $172 billion in processing fees—an increase of over 7.5% from 2022. Some of these fees are negotiable, so office managers should stay vigilant when reviewing monthly statements.

Working with a third-party consultant like Merchant Advocate can also help practices reduce their processing costs and prepare for PCI DSS 4.0. To find out more, contact us at merchantadvocate.com/aadom.