All these regulations are bs. Designed to keep small players out.
The purpose of PCI is to shift liability
It just isn't reasonable that PayPal would be cut off. That was always a toothless threat, at least for larger players.
As an aside, PayPal is a marvel to me because it is effectively lost in time. Using their tools and interface is like stepping back to 1995, and it seems -- from an outsider perspective -- that it must be some duct-taped quagmire that is barely holding on.
No? They were created by the industry to avoid actually being regulated and are a way to shift liability.
That doesn't mean they aren't also beneficial, but that's more a side effect than the intention.
If we want to be cynical, of course there was a self-serving reason they created the standards -- because fraud, especially "internet" fraud, was on a massive upswing and it threatened this enormous new market of credit card spending. There is no question it's in their self-interest to improve the general condition of transactions.
It's not cynical, it is literally the reason PCI exists.
> Five different programs had been started by card companies... The intentions of each were roughly similar: to create an additional level of protection for card issuers
- https://en.wikipedia.org/wiki/Payment_Card_Industry_Data_Sec...
You said -
"avoid actually being regulated and are a way to shift liability"
This is like saying a store put razors in a locked case to avoid being regulated. Or they simply don't want their stuff stolen?
I was being facetious when I said if we want to be cynical, because of course everything any business does is in their own self-interest. Of course it is -- that goes without saying, unless one is just trying to be glum.
Equating credit card fraud to physical theft is silly. The intermediaries of the credit card industry earn revenue by charging fees to process transactions. When fraud occurs, they're only liable if they were some how responsible. PCI allows the network to shift liability to the periphery and to allow the central network to deny taking responsibility for systemic problems with the infrastructure.
To use your razors analogy, PCI is like Gillette shipping razors lose in a box to CVS and telling the store that it is liable if anyone gets cut or the razors get stolen AND Gillette can fine them if anyone gets cut or razors get stolen. But that's not how it works, in the real world razors come with safety covers in tamper evident sealed plastic clam shells.
In both cases someone is out money. It isn't a difficult step.
Fraud costs the credit card industry. It costs issuers (they shoulder 60% of the direct cost), merchants, and it costs the future of the industry because it is a nuisance for end-users.
They make a standard of best practices to reduce fraud. Following those best practices is good for every single participant, outside of criminals. Reducing fraud wholesale is the goal, obviously.
Spinning this in a nefarious fashion is not helpful to anyone, and does nothing but muddies the waters.
PCI identifies recommended mitigations and imposes penalties for failures, but it doesn't ensure or validate compliance. It simply shifts liability from one stakeholder to another.
No one is spinning this as nefarious, but rather information that should be taken into consideration.
Or is that one much like GDPR? Crazy fines that only big players can afford, in such a case, that was poorly designed.
> Up to €10 million, or 2% of the worldwide annual revenue of the prior financial year, whichever is higher
> (1) Each supervisory authority shall ensure that the imposition of administrative fines [shall] be effective, proportionate and dissuasive.
> (2) [...] When deciding whether to impose an administrative fine and deciding on the amount of the administrative fine in each individual case due regard shall be given to the following:
> the nature, gravity and duration of the infringement taking into account the nature scope or purpose of the processing concerned as well as the number of data subjects affected and the level of damage suffered by them;
> the intentional or negligent character of the infringement;
> any action taken by the controller or processor to mitigate the damage suffered by data subjects;
> the degree of responsibility of the controller or processor taking into account technical and organisational measures implemented by them pursuant to Articles 25 and 32;
> any relevant previous infringements by the controller or processor [and other specified criteria]
> (8) The exercise by the supervisory authority of its powers under this Article shall be subject to appropriate procedural safeguards in accordance with Union and Member State law, including effective judicial remedy and due process.
They can't just arbitrarily decide to fine you the maximum.
Fining a small mom and pop site 20 mill (20mil/4% is the highest fine depending on the case) is not proportionate, not effective because I would like to see them actually collect on that and I would say such a fine to a mom and pop would be dissuasive of doing business at all which is not that the ICO in the U.K. would want. Speaking of the ICO, their big fine (fucking auto correct) to BA for shockingly bad security earned them a 1.5% fine instead of the max 4% because they worked with the ICO (but the ICO still found they failing in a duty of care to protect data) and have been pushing the fine down the road ever since it was issued, atm the earliest ICO will actually fine BA is next month and it’s been almost a year since they filed their "intent to fine".
So while they can throw around heavy fines. It’s not like they run every mom and pop site out of the country.
Welcome to the EU. They've pulled these stunts before. When they introduced changes to digital VAT collection the lawmakers "forgot" that VAT has exemption thresholds. This effectively barred some small and micro businesses from selling their digital services/goods to other EU countries, because the business would not have been exempt from VAT afterwards. It took the lawmakers years to implement a minimum VAT threshold.
>It’s not like they run every mom and pop site out of the country.
Of course they won't, because people want to do business. There will always be more businesses that get started. The question is whether there will be fewer businesses started because of the regulation. So far analysis after GDPR points to yes.
The max(€10m, 2%) and max(€20m, 4%) are the most that supervisory authorities may issue as fines.
But supervisory authorities have a legal duty to issue fines that are proportional which means than unless you breach the GDPR in a wilful and egregious manner you're unlikely to be fined that much (and if you are you can appeal the fine to a court who would reduce it to a proportional amount).
Is the law as written somehow vulnerable to some legal hack where all my revenue goes through Company A but all my data goes through Company B, so that Company B has a small global revenue despite being extremely profitable to the controllers of the companies?
No. Who the data controllers are is a matter of fact, not assignment.
To quote the Court of Justice of the European Union in the Fashion ID case (C‑40/17) at paragraph 68:
"[A] natural or legal person who exerts influence over the processing of personal data, for his own purposes, and who participates, as a result, in the determination of the purposes and means of that processing, may be regarded as a controller".
Furthermore, as per that case, multiple data controllers may exist for some processing activities.
So both Company A and Company B may be considered to be Data Controllers and thus both liable.
> Up to €10 million, or 2% of the worldwide annual revenue of the prior financial year, whichever is higher
I'm no lawyer, but this doesn't sound like it's just for the bigger players, at the minimum you'd be looking at some fines. At minimum you'd be paying 10 million if you incur that amount of fines. I guess it could be argued the 2% is geared towards hurting the big players.
[0] https://gdpr-info.eu/art-83-gdpr/ Art. 83(4)