A County Treasurer’s Guide to PCI Compliance in 2025

Key Takeaways

• PCI compliance in government is about more than avoiding fines—it’s about protecting public trust.

• Even though counties aren’t “stores,” PCI rules still apply if you accept card payments.

• Legacy reliance on checks and cash adds risk; secure digital payments must include protections across the entire system.

• PCI DSS 4.0 requires more documentation, flexibility, and upfront risk reviews for every new payment option.

• The smartest compliance strategy: don’t touch sensitive card data; rely on secure processors and tokenization.

• AI is both a threat (AI-powered phishing) and a defense (fraud detection, monitoring)—but always requires oversight and accountability.

For county treasurers and finance directors, managing PCI compliance isn’t just about technical security; it’s about preventing a data breach. You operate under a different set of rules, from budget approvals to public trust, that most private companies never face. Your approach to PCI compliance and security is just as unique.

The Realities of Public Sector Compliance

Local governments face payment security challenges that look very different from those in the private sector. Their unique culture and operations create hurdles that go well beyond simply checking the 12 PCI DSS 4.0 compliance boxes.

Political Risk vs. Technical Risk

In the private sector, the biggest threat of non-compliance is usually financial—fines, penalties, or fees. For public officials, however, the real danger is political. A data breach doesn’t just cost money; it can shatter public trust, damage credibility, and erode confidence in an institution that serves the community. The stakes aren’t measured in dollars—they’re measured in trust.

The “We’re Not a Store” Misconception

One of the most common misunderstandings in government offices is the belief that PCI compliance doesn’t fully apply because they’re not “retail merchants.” But the truth is simple: if you accept payment cards, you’re a merchant in the eyes of the PCI Security Standards Council and the card brands. Dismissing this fact can leave critical vulnerabilities unaddressed.

The Check-Based Mindset

Many government agencies still depend on paper checks and cash, supported by old systems and processes. While familiar, these methods come with risks like check fraud and mail theft, and they make switching to secure digital payments harder. True protection means securing every part of the payment process—from the mailroom to the data center—to keep both taxpayers and institutions safe.

Navigating PCI DSS 4.0: Beyond the Checklist

PCI DSS 4.0, required since March 2025, is more than checking boxes.

• Flexibility with Responsibility: Agencies can now choose how they meet security goals, but they must explain and document their choices—adding extra work.

• Risk Reviews: Any new payment option, like a parking app or tax portal, requires a risk check from the start. This makes planning and prevention a must, not an afterthought.

The Best Strategy: Don’t Handle the Data

The easiest way for a county to stay PCI compliant is to never touch payment card data. A secure processor handles all card payments—online, in person, or by phone—and replaces the card information with a harmless token your systems can use for records. This keeps sensitive data out of your network, reduces risk, and lets your IT team focus on serving the community.

Emerging Threats and the AI Factor

Cybercriminals are getting smarter, using AI and new tactics to target government systems.

• AI Phishing: Attackers use AI to craft convincing emails that trick staff into sharing access.

• Vendor Risks: Hackers may hit third-party providers, like billing platforms, to get to your data. PCI DSS 4.0 now requires closer oversight of vendors.

AI can also help: it spots fraud in real time, monitors systems 24/7, and alerts teams to suspicious activity. But it must be used responsibly, with limits on access and human oversight.

The bottom line: PCI compliance isn’t about buying the latest tools—it’s about smart strategy. By understanding risks, modernizing practices, and using tools like tokenization and AI wisely, counties can protect citizen data and public trust.

Frequently Asked Questions (FAQ)

Q: Does PCI compliance really apply to counties and local government?
Yes. If you accept credit or debit card payments, you’re considered a merchant under PCI rules, no matter the setting.

Q: What’s the biggest risk for counties if they fail PCI compliance?
Beyond financial penalties, the real risk is political: damage to public trust, credibility, and community confidence.

Q: How can we reduce our PCI compliance burden?
The most effective step is to avoid handling card data directly. Use a PCI-compliant processor that securely manages payments and returns only reporting data to your systems.

Q: What’s new in PCI DSS 4.0 that counties should focus on?
Expect more flexibility but also more responsibility—every security choice must be documented and defended. Also, new payment channels require upfront risk assessments.

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