Quick Answer
The answer is PCI DSS, the Payment Card Industry Data Security Standard, which is the mandatory framework for any organization handling credit card transactions. This standard is correct because it establishes strict technical controls for protecting cardholder data, including encryption of data at rest and in transit, robust access controls, and network segmentation to isolate the cardholder data environment. On the Certified Cloud Security Professional CCSP exam, this question tests your understanding of regulatory compliance in cloud deployments, often appearing as a scenario where a cloud application processes payments and you must identify the applicable standard. A common trap is confusing PCI DSS with broader frameworks like GDPR or HIPAA, but remember that PCI DSS is specifically contractually and legally required for credit card processing, not just recommended. Memory tip: think “PCI = Plastic Card Industry” to instantly link it to credit card transactions and data security requirements.
This CCSP practice question tests your understanding of cloud data security. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is deploying a cloud application that processes credit card transactions. Which standard must they comply with regarding data security?
GDPR
Why wrong: GDPR is for personal data of EU citizens.
PCI DSS
PCI DSS applies to credit card data handling.
HIPAA
Why wrong: HIPAA is for healthcare data.
ISO 27001
Why wrong: ISO 27001 is a security management standard, not specific to credit cards.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
PCI DSS
PCI DSS (Payment Card Industry Data Security Standard) is the mandatory security standard for any organization that handles credit card transactions. It defines strict requirements for protecting cardholder data, including encryption, access control, and network segmentation. Since the application processes credit card transactions, compliance with PCI DSS is legally and contractually required.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
GDPR
Why it's wrong here
GDPR is for personal data of EU citizens.
PCI DSS
Why this is correct
PCI DSS applies to credit card data handling.
Related concept
Read the scenario before looking for a memorised answer.
HIPAA
Why it's wrong here
HIPAA is for healthcare data.
ISO 27001
Why it's wrong here
ISO 27001 is a security management standard, not specific to credit cards.
Common exam traps
ISC2 often tests the distinction between mandatory regulatory standards (like PCI DSS) and voluntary frameworks (like ISO 27001), leading candidates to mistakenly choose ISO 27001 because it is a well-known security standard.
Detailed technical explanation
PCI DSS is enforced by the Payment Card Industry Security Standards Council (PCI SSC) and includes 12 core requirements, such as encrypting cardholder data at rest (using AES-256) and in transit (using TLS 1.2 or higher). A common subtlety is that PCI DSS applies to any entity that stores, processes, or transmits cardholder data, regardless of cloud deployment model (IaaS, PaaS, SaaS). In a real-world scenario, a cloud application using a third-party payment gateway may still need to validate its own PCI compliance if it captures or transmits raw primary account numbers (PANs).
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A developer is choosing between AES-256 (symmetric) and RSA-2048 (asymmetric) for encrypting a large file that will be sent to a partner. Symmetric encryption is fast but requires key exchange; asymmetric is slower but solves the key distribution problem. A hybrid approach — encrypt the file with AES, encrypt the AES key with RSA — is standard. Questions like this test whether you understand when each approach applies.
What to study next
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FAQ
Cloud Data Security — This question tests Cloud Data Security — Read the scenario before looking for a memorised answer..
The correct answer is: PCI DSS — PCI DSS (Payment Card Industry Data Security Standard) is the mandatory security standard for any organization that handles credit card transactions. It defines strict requirements for protecting cardholder data, including encryption, access control, and network segmentation. Since the application processes credit card transactions, compliance with PCI DSS is legally and contractually required.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
This CCSP practice question is part of Courseiva's free ISC2 certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CCSP exam.
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