PCI Non-Compliance Fee

Key Takeaways

• PCI non-compliance fees often come from your payment processor, not the card brands
• You can be charged every month without knowing what triggered it
• Paying the fee doesn’t mean you’re secure or even compliant
• Most PCI programs leave merchants doing all the work themselves
• PCI DSS v4.0 brings higher expectations and new uncertainty around enforcement
• More organizations are folding PCI into broader risk and compliance strategies

What are PCI Non-Compliance Fees?

PCI non-compliance fees are penalties that merchants may face if they fail to meet the requirements of the Payment Card Industry Data Security Standard (PCI DSS). These fees are not issued by the PCI Security Standards Council itself, but rather by the merchant’s acquiring bank or payment processor. The penalties are typically passed down from credit card brands such as Visa or Mastercard, which enforce PCI compliance through their relationships with banks. These fees can range from a few hundred to thousands of dollars per month, depending on the size of the business, the duration of non-compliance, and the level of risk involved.

What Is PCI DSS?

The PCI DSS is a set of technical and operational requirements designed to protect cardholder data. It applies to any entity that stores, processes, or transmits credit card information. Compliance with the standard is not optional; it is a contractual obligation for any merchant or service provider that accepts card payments. The standard is managed by the PCI Security Standards Council, a global forum founded in 2006 by major card brands including Visa, Mastercard, American Express, Discover, and JCB.

Non-compliance with PCI DSS can expose organizations to significant data security risks, reputational damage, and legal liability. That’s why acquiring banks and processors monitor merchants for compliance and apply non-compliance fees as both a deterrent and a recovery mechanism for the potential risk they carry.

Who Issues PCI Non-Compliance Fees?

Although PCI DSS is developed by the PCI Council, enforcement falls to payment processors and acquiring banks, who are contractually responsible for ensuring that merchants within their network maintain compliance. When a merchant fails to submit required PCI compliance documentation, such as a Self-Assessment Questionnaire (SAQ), Attestation of Compliance (AOC), or results from a Qualified Security Assessor (QSA), the bank or processor may begin charging non-compliance fees on a monthly basis. Some payment processors, such as PCI non compliance fee Global Payments programs, outline their own timelines and fee structures, which can differ significantly from other providers.

These fees are not regulated. This means their amount and structure vary widely. Some processors charge a flat monthly fee (e.g. $19.95 or $59.99 per location), while others use a percentage of card transactions or adjust the penalty based on how long the merchant remains non-compliant.

When Do PCI Non-Compliance Fees Apply?

Non-compliance fees typically begin as soon as a merchant is flagged as non-compliant, whether due to missing documentation, failing scans, or audit findings. For example, if a business fails to submit its PCI DSS Attestation of Compliance for the year, the processor may automatically begin issuing non-compliance charges until the paperwork is completed and accepted. Once the grace period expires, merchants may see a monthly PCI non-compliance fee appear on their billing statements, often without a clear explanation of what triggered it. This lack of transparency has been a common point of frustration and confusion for small and mid-sized businesses.

There is usually a grace period built into contracts, after which fees begin. However, many merchants may be unaware they are being charged, as the fees are often lumped into monthly billing statements without clear labeling. This has been a common point of frustration and confusion for small and mid-sized businesses.

How High Can PCI Non-Compliance Fees Get?

The actual cost of non-compliance can vary, but fees can easily add up to thousands of dollars annually for businesses that remain out of compliance for extended periods. For example, the First Data PCI non-compliance fee has been frequently cited by merchants for its structured, recurring penalties when annual compliance documentation isn’t submitted on time. More importantly, non-compliance may increase the financial liability in the event of a breach. If a merchant suffers a data breach and is found to have been non-compliant, they could be held liable for forensic investigation costs, fraud losses, brand penalties, and compensations to issuing banks, sometimes amounting to millions of dollars, depending on the size and scope of the breach.

This is one reason many organizations choose to use a platform like Centraleyes to proactively manage their PCI compliance and avoid the long-term cost of reactive fines.

Final Thoughts

While these fees can seem arbitrary or opaque, they point to a real risk: the failure to secure cardholder data properly. In some cases, merchants have even pursued a PCI non-compliance fee settlement when they believed charges were applied unfairly or without sufficient notice. This underscores the importance of understanding your contract terms, monitoring billing statements closely, and taking a proactive approach to PCI compliance.

Understanding where these fees come from, what triggers them, and how to prevent them is key to maintaining both operational integrity and customer trust. With new PCI DSS updates coming into effect, and pressure mounting for more integrated risk solutions, now is the time for organizations to take a smarter, more centralized approach to compliance.

FAQs

What happens if I just ignore PCI non-compliance fees?

Long-term non-compliance could lead to increased liability in the event of a breach, higher penalty tiers, or even termination of your merchant account.

Are PCI non-compliance fees negotiable?

In some cases, yes. If you can demonstrate that you’re actively working toward compliance or if the fees were applied in error, some processors may waive or refund previous charges. But it depends entirely on your contract and the processor’s policies.

Do Level 1 merchants face different consequences than smaller businesses?

Yes. Level 1 merchants (processing over 6 million transactions annually) are subject to stricter audit requirements and may face larger fines or public scrutiny for non-compliance. However, smaller businesses often suffer from a lack of support and overdependence on opaque processor programs.

How can I confirm if my processor’s “PCI program” actually makes me compliant?

You’ll need to check whether the program includes validated assessments, scan management, and direct documentation submission, or if it’s simply a pass-through billing item. Many “PCI fees” don’t automatically equate to compliance unless you actively participate and submit materials.

What’s the link between PCI non-compliance and data breach liability?

If you suffer a breach and are found non-compliant, you’re more likely to be held responsible for damages, including fines from card brands, forensic investigation costs, and reimbursement of fraud-related losses to issuing banks.