Re: PCI - Third party vendors

[Mike Chapple <mchapple () ND EDU>]

Blake,

Respectfully, I disagree with the conclusion that you've reached.

The important point is that PCI DSS is a contractual obligation, not a law.
 The only way that you can become subject to a contractual obligation is to
voluntarily accept it by signing a contract.  If it were true that "Any
entity that processes, stores, or transmits CHD must comply with the
standard," it would be forcing entities who are not a party to the contract
(merchant agreement) to comply with the terms of that agreement.

Under this logic, I could take a file of credit card numbers and stick it
in Dropbox and that would make Dropbox a service provider subject to PCI
DSS.  That is not the case, as Dropbox never agreed to handle credit card
information for me under the PCI DSS standard.

That said, it is clearly the responsibility of the merchant to only use
service providers who agree to comply with PCI DSS.  The contracts they
have with those service providers should include language to that effect,
thereby transferring some compliance obligations.  Absent that language, it
is the responsibility of the merchant to not use that particular service to
transmit unencrypted CHD.

Just my two cents.  I'm not a lawyer :)

Mike



On Fri, Jul 25, 2014 at 10:54 AM, Blake Penn <BPenn () trustwave com> wrote:

>  Craig,
>
>
>
> The fact that they are an external entity does not obviate your PCI DSS
> compliance.  Any entity that processes, stores, or transmits CHD must
> comply with the standard.  The nuance here is that you don’t have an
> associated MID (since they are a third party) and therefore no associated
> acquirer relationship/contractual compliance obligations.  This changes
> your **enforcement/validation** requirements (there are none) but not
> your actual **compliance** requirements.  The way the card schemes see it
> is that CHD is their data and anyone touching it must comply with the DSS
> (how they would enforce this view is an entirely different matter).
>
>
>
> That being said, your QSA should be able to come up with controls that may
> minimize (or perhaps eliminate) the scope of your compliance burden.  The
> easiest way compliance-wise is to avoid the issue, though.  I commonly
> see clients set up a separate physical network routed out to the ole’
> Interwebs through a cheap consumer-grade DSL/Cable connection for guest
> wireless and other such use.  That way the networks never touch (“Don't
> cross the streams.”) and compliance really doesn’t become an issue.
>
>
>
> Hope that helps.  Do consult with your friendly neighborhood QSA, though,
> for specific guidance on this issue.
>
>
>
>
>
> *Blake Penn  **CISSP, PCIP, MCSE, MCSD, MCDBA, QSA, ISMS Principal
> Auditor*
>
> Principal Consultant
>
> t: 678.685.1277
>
>
>
> *Trustwave* | SMART SECURITY ON DEMAND
>
> www.trustwave.com
>
>
>
> DISCLAIMER: The views represented in this message reflect the personal
> opinions of the author alone and do not neccessarily reflect the opinions
> of Trustwave.
>
>
>
>
>
> *From:* The EDUCAUSE Security Constituent Group Listserv [mailto:
> SECURITY () LISTSERV EDUCAUSE EDU] *On Behalf Of *Drake, Craig
> *Sent:* Thursday, July 24, 2014 4:30 PM
> *To:* SECURITY () LISTSERV EDUCAUSE EDU
> *Subject:* [SECURITY] PCI - Third party vendors
>
>
>
> We have a new coffee shop going into our library.  They are completely run
> by an external entity not associated with the university.  They want to
> connect their terminals to our university network (possibly wireless) to
> transmit their credit card transactions.  What do we need to be concerned
> with in terms of PCI compliance with them running this through our
> networks?
>
>
>
> Thank you,
>
> -Craig
>
>
>   *Craig Drake*
>
>
> *University Technology Services*
> Northeastern Illinois University
> 5500 North St. Louis Avenue, Chicago, IL 60625
> Phone: (773) 442-4386
> Email: C-Drake () neiu edu
>
> *www.neiu.edu <http://www.neiu.edu>*
>
>
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-- 

Best regards,
Mike


*Mike Chapple, Ph.D.*Senior Director for IT Service Delivery
Concurrent Assistant Professor, Management
University of Notre Dame
236 IT Center  *| * Notre Dame, IN 46556
*P:* 574-631-5863  *|*  *M: *574-274-0151
mchapple () nd edu