PCI compliance can represent a significant cost for small businesses and startups. However, it's important to keep in mind that the cost of compliance is always lower than the cost of non-compliance. No business can afford the stiff financial penalties associated with failure to submit the required proof of compliance or the loss of revenue and potential lawsuits that can result from a data breach.
Modern IT professionals and business owners should start thinking of compliance as a recurring expense. Build compliance requirements into your annual budget to avoid sticker shock or scrambling to meet the minimum. If your business anticipates an ongoing need to process cardholder payments, PCI compliance is a requirement that must be considered.
This guide breaks down the nine factors that most influence PCI DSS compliance costs and how your organization can manage them efficiently.
9 Factors that Affect the Cost of PCI-DSS Compliance
The cost of PCI compliance can vary from business to business. It varies based on your business size, structure, and card transaction volume. Below are the top factors that determine what you'll pay to achieve and sustain compliance.
1. Number of Transactions Processed
The number of transactions processed each year will determine your PCI compliance Level. Levels 1 through 4:
- Level 1: Over 6 million transactions annually
- Level 2: 1 to 6 million
- Level 3: 20,000 to 1 million
- Level 4: Fewer than 20,000
Each level has different requirements, assessment costs, and reporting obligations. The higher the level, the more rigorous and costly your compliance activities will be.
Pro Tip: Levels and associated requirements can vary between vendors, so it is important to determine requirements on a per-vendor basis. You may find that your level is significantly different with American Express than with Visa or MasterCard.
2. Business Type and Size
Business size and type can impact other factors that can drive compliance costs up or down. For example:
- Small retailers often have lower costs due to fewer systems and simpler environments.
- Large enterprises or franchises may need to secure complex, distributed networks, resulting in higher costs.
- E-commerce businesses can incur additional expenses for secure hosting, encryption, and ongoing vulnerability scans.
3. Number of Employees
Each employee who processes card data can present vulnerabilities and security risks. The total number of employees who handle card processing or payment data is a significant factor in total compliance costs.
Every employee who interfaces with payment card information can increase the total costs of training or necessitate additional IT security protections. Organizations with a large volume of employees may also require more elaborate policies and procedures.
4. Senior Leadership
Organizational culture is a significant factor in information security and risk mitigation. According to Deloitte, a "culture of ethics and compliance" can be key to effective compliance. Ideally, your senior leadership or company owner should fully support your need for PCI-DSS compliance. Support should include the necessary budget to manage risks.
If your leadership team is not supportive of your PCI efforts, you could face cultural barriers. Employees may be reluctant to modify their behavior due to a culture of noncompliance. Executive buy-in is critical, and non-supportive leadership could significantly increase your risk of being hit with noncompliance penalties.
5. Physical Environment
The location, type, and configuration of your on-site (or off-site) hardware can all impact compliance costs. Other factors related to the physical environment can also have an impact. If your employees work remotely, your compliance costs could be higher. Bring-your-own-device (BYOD) workplaces may also face greater risks, particularly if employee-provided mobile devices are used to process and store card transactions.
6. Hardware and Infrastructure
Every piece of equipment used to process or transmit card data must be compliant with PCI DSS. This includes computers, mobile devices, servers, card machines, firewalls, and other related equipment. Typically, organizations with a high volume of hardware or legacy systems can anticipate higher compliance costs related to:
- System upgrades
- Patch management
- Configuration and file integrity monitoring (FIM)
Solutions like CimTrak can help automate integrity monitoring, detect unauthorized changes, and maintain continuous compliance.
7. In-House PCI Knowledge
If your organization's IT team includes PCI expertise, you may be able to anticipate lower compliance costs. In-house expertise can enable you to continuously evaluate and meet requirements.
However, organizations with limited internal IT talent or PCI knowledge may require ongoing assistance from PCI Qualified Security Assessors (QSAs) or external consultants to mitigate risk.
It's important to remember that in-house PCI expertise is not a substitute for unbiased review and audit by a certified third-party professional. However, internal talent can help ensure your organization is prepared for an audit.
8. PCI Compliance and Non-compliance Fees
Non-compliance fees can occur on a monthly basis. Companies subject to noncompliance fees may be responsible for monthly payments until satisfactory proof of compliance has been submitted. If your organization has been found non-compliant in the past, your interim costs could be higher due to these monthly recurring payments.
To avoid these costs:
- Maintain continuous monitoring
- Schedule regular self-assessments
- Address any gaps before your validation deadlines
9. Qualified Security Assessments
The costs of a qualified audit depend on the level of compliance required. The audit fees for a small organization will be significantly lower than those for a larger organization that processes millions of transactions annually. A qualified auditor should be able to provide a quote in advance based on your estimated compliance-level requirements and other factors discussed in this blog.
Ancillary services provided by an auditor or organization, such as policy development and staff training, can add to this cost. While these services can significantly increase costs, they can be an important tool for organizations that lack the internal resources to effectively mitigate risks.
How Much Does PCI Compliance Cost?
The average cost of PCI-DSS compliance can vary significantly according to the factors discussed above. While the compliance level is among the most accurate predictors of compliance cost, there is significant variation between levels due to the physical environment, the number of external consultant services required, and other variables.
SecurityMetrics estimates that PCI DSS costs range from $300 per year for small businesses to over $70,000 for large enterprises, with QSA-led assessments averaging approximately $15,000.
Most small businesses and companies that process fewer than 20,000 transactions each year have an average cost of less than $10,000.
Ultimately, compliance costs less than a breach. According to IBM's 2025 Cost of a Data Breach Report, the global average cost of a data breach exceeds $4.5 million—a steep contrast to the cost of preventative compliance.
Managing PCI Compliance Costs Efficiently
PCI DSS compliance isn't simple, but it's critical for organizations that rely on credit or debit card processing as a source of revenue. To avoid costly financial penalties, organizations must view PCI as an ongoing effort. By budgeting for compliance on a monthly basis and receiving expert guidance in identifying and meeting requirements, your team can mitigate risks.
CimTrak is a leading solution for auditing configuration standards against industry benchmarks, monitoring file integrity, and other activities critical to PCI compliance at organizations of any size. For more information on CimTrak and Cimcor's PCI compliance solutions, click here.
