Are 3rd party providers monitored by issuers according to standard practices?

The reason why organizations should monitor their compliance status is rooted in the PCI DSS (Payment Card Industry Data Security Standard) requirements, which place the responsibility for securing cardholder data squarely on the entities that handle it. Third-party providers, such as service providers and vendors, may have access to sensitive information and the security measures they implement can directly affect the overall security posture of an organization.

Monitoring third-party providers is crucial, as organizations need to ensure that these entities comply with PCI DSS requirements. While issuers may have oversight of third-party providers, it is primarily the responsibility of the organizations that engage these providers to actively monitor their compliance status. This monitoring can include regular assessments, audits, and validation of the third-party's PCI DSS compliance to mitigate risks associated with data breaches or non-compliance.

The effectiveness of PCI DSS compliance often hinges on the extent to which organizations engage with their third-party vendors. Proactive monitoring helps organizations identify potential vulnerabilities and ensures that they maintain their commitment to safeguarding cardholder data.