In PA-DSS terms, what is a Payment Application?

• A. In PA-DSS, a software application that stores, processes, or transmits cardholder data as part of authorization or settlement, sold to third parties.
• B. A hardware device used to process payments.
• C. A compliance standard for network segmentation.
• D. A financial instrument used for merchant settlements.

Answer: (A)

In PA-DSS terms, a Payment Application is software that stores, processes, or transmits cardholder data as part of the authorization or settlement of a payment, and it is typically sold to third parties. This distinguishes it from hardware devices used to process payments, from standards for network segmentation, or from financial instruments used for settlements. The purpose of PA-DSS is to ensure such software is designed and developed securely so merchants can meet PCI DSS requirements when using that application.