Read this blog to get answers from a QSA on what affects the cost of a PCI level one audit, what hidden fees might exist, and what you can do to get a more accurate quote.
Every year, businesses that process over six million card transactions annually must get a PCI Level 1 audit. And yet, as a QSA I’ve found that there is a lack of transparency surrounding why PCI Level 1 audit costs are confusing.
Read this blog to get answers from a QSA on what affects the cost of a PCI level one audit, what hidden fees might exist, and what you can do to get a more accurate quote.
Try the SecurityMetrics PCI Audit Price Range Calculator for free.
While every audit is unique, enterprise businesses can expect the following cost ranges for PCI Level 1 audits:
These costs typically include various phases of the audit, such as pre-assessment activities, documentation review, on-site validation, and the final report of compliance.
Keep in mind that these figures primarily cover the QSA's fees for conducting the audit and generating the report.
I think it’s important to remember that these figures aren’t your final cost because these costs are separate from any investments your company may need to make in security tools, policy development, or system upgrades to achieve and maintain compliance.
A PCI level one audit is an assessment that validates an organization's adherence to the Payment Card Industry Data Security Standard (PCI DSS). There are PCI Level 1 merchants and Level 1 service providers. The card thresholds start at 6M+ annual transactions for merchants and 300K transactions annually for Level 1 service providers.
This audit follows a comprehensive set of security guidelines designed to protect both organizations and cardholder data.
Unlike Self-Assessment Questionnaires (SAQs), which work for smaller merchants, a Level 1 audit demands a thorough, onsite or remote evaluation conducted by a qualified third-party, known as a Qualified Security Assessor (QSA). A level one PCI audit is for large enterprises where the potential breach would affect a lot of cardholder data.
In my experience, the investment in a PCI Level 1 assessment can vary considerably. Here are the key factors that impact the final cost:
Conducting a level one PCI audit requires significant time and energy.
A lot of first-time PCI level one customers don’t understand the amount of effort that extends beyond their on-site or remote audit.
For example, the documentation phase that follows the assessment is actually where a lot of your cost comes into play. This is because some documentation can be 50+ pages long, with your QSA writing out everything they noted about your environment and what was done to protect sensitive data.
The size and intricacy of your processes, systems, and environment directly correlates with the time and resources required for the audit. The larger and more complex things are, the more expensive things can get.
Additionally, a larger number of physical locations will drive up the cost of your PCI level one audit.
It’s important to remember that while QSAs do their best to understand your scope during quoting, any surprises can lead to more cost later.
If your organization's security posture is already strong, your audit may be easier to conduct. The more preparation you’ve done in things like documentation or research on specific PCI requirements, the easier and more affordable an audit can be.
On the other hand, if significant gaps exist, your cost will increase because you will need remediation efforts.
Having a team available to assist with the audit and address findings can reduce your need for external remediation support, which can lower your overall expense.
An expedited audit will likely require more QSA resources in a shorter timeframe, leading to a higher cost.
In fact, it’s important if you have strict PCI deadlines to be strategic about choosing a QSA who can help you meet those deadlines.
Some organizations only need the occasional question answered outside of their PCI audit, whereas others may want to purchase consulting hours for ongoing support and remediation assistance. This support tacks on additional cost.
However, consulting hours can also help you save money in the long run, as you can hire a QSA consultant before your audit to get more of the work done yourself.
Inflation and meeting new compliance changes (like the transition to PCI v. 4) can also affect your final price.
Beyond the initial audit fees, several hidden or unexpected costs can arise. Remediation efforts post-audit are a common source of additional expense. If, during your audit, it’s discovered that you have significant non-compliant areas of your environment, it can be expensive to fix. This may involve technology or tool upgrades to meet PCI DSS requirements.
The internal personnel time and effort required to prepare for and support the audit should not be underestimated. Also, more follow-up assessments or retesting can be necessary if you require significant remediation.
For example, I had an audit where it was discovered late in the process that they had an entire call center that hadn’t been disclosed. This meant that their initial scope and quote were much larger than previously discussed. So, if you fail to disclose something like a call center, and that call center has lax security practices like employees using personal devices for work or improperly handling cardholder data, your estimated quote can skyrocket.
While a thorough PCI Level 1 audit is a necessary investment, there are ways to potentially reduce costs without compromising security:
I can’t stress how important proactively preparing by studying the PCI standard and assessing your own controls can lead to a more accurate quote and potentially reduce the time and cost of the audit.
When engaging with potential QSAs, my advice is to ask the following questions regarding their pricing:
Although fixed bids are given, they often include clauses that allow for cost re-evaluation. It's a common area of confusion, but it's the result of inaccurate scoping in the early stages.
Budgeting for a PCI Level 1 audit is not just about allocating funds for a report; it's a strategic investment in risk reduction and brand protection. While the costs can be significant, they pale in comparison to the potential financial and reputational damage resulting from a data breach.
Being PCI compliant can be the difference between a close call and a catastrophic breach. Prioritizing it is a must for security and safety.
Remember, you're not just buying an audit; you're taking proactive steps to avoid hefty fines levied by card brands and merchant banks, you’re preventing breaches that erode customer trust, and you’re safeguarding your organization's reputation.
Looking for a PCI audit partner who can help you determine your budget? Let’s talk.
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