The Trust Services Criteria
The Trust Services Criteria consist of five categories, each addressing a specific aspect of a service organization’s system:
1. Security: Protecting the system from unauthorized access, both physical and logical.
2. Availability: Ensuring that the system is operational and accessible for use as committed or agreed upon.
3. Processing Integrity: Ensuring that the system processes data accurately, completely, and in a timely manner.
4. Confidentiality: Protecting the confidentiality of the information processed by the system.
5. Privacy: Protecting the personal information collected, used, retained, or disclosed by the system.
When the Processing Integrity TSC Applies
The Processing Integrity Trust Services category is applicable in situations where a service organization’s customers rely on the accurate, complete, and timely processing of data by the system. This category provides assurance that the service organization has implemented the necessary controls and processes to maintain the integrity of the data processed by their system.
Questions to Determine if the SOC 2 Processing Integrity TSC Applies
- Does your system process data on behalf of your customers?
- Do you have agreements in place with your clients that mandate any processing integrity requirements?
- Does your system produce reports which are critical to your customers’ operations?
- Do your customers express concerns or expectations related to the accuracy, completeness, and timeliness of your data processing services?
- Does your organization handle data processing for high-transaction environments or data-intensive industries where processing errors could lead to significant financial, operational, or reputational impacts?
- Have you experienced past incidents involving processing errors, system failures, or data inaccuracies that have affected your customers’ operations or your organization’s reputation?
- Do you rely on third-party vendors for critical data processing tasks, and are their processing integrity controls relevant to your organization?
- Are there any industry-specific regulations or legal requirements governing the processing integrity of your organization’s services?
Answering these questions can help service organizations evaluate whether the SOC 2 Processing Integrity Category is applicable to their operations and determine the appropriate controls to implement for compliance.
Scenarios Where the Processing Integrity TSC Applies
- Payment processors: Payment processors handle financial transactions for businesses, ensuring that payments are processed correctly and promptly. The accurate and timely processing of these transactions is crucial for maintaining customer trust and satisfaction, making the Processing Integrity TSC applicable in this context.
- Payroll service providers: Organizations that rely on payroll service providers need assurance that their employees’ salary calculations, deductions, tax withholdings and benefits are accurate and timely. The Processing Integrity TSC is relevant for payroll service providers, as it demonstrates their commitment to maintaining data integrity.
- E-commerce platforms: Online retailers depend on their e-commerce platforms to process transactions, customer orders and payments accurately and efficiently. Ensuring the integrity of these processes is vital for customer satisfaction and business success, making the Processing Integrity TSC applicable in this scenario.
- Data analytics providers: Companies that offer data analytics services must ensure that their analyses are based on accurate, complete, and timely data. The Processing Integrity TSC is applicable to data analytics providers, as it provides assurance of their commitment to maintaining data integrity in their analyses.
- Supply chain management systems: Businesses that rely on supply chain management systems need assurance that their inventory, procurement, shipping information and logistics data are processed accurately and in a timely manner. The Processing Integrity TSC is applicable in this scenario, as it demonstrates the service provider’s commitment to maintaining data integrity in these critical processes.
- Insurance claims processing: Insurance companies depend on accurate and timely processing of claims data to determine payouts and manage risk. The Processing Integrity TSC is relevant for insurance claims processors, as it provides assurance of their commitment to maintaining data integrity in this crucial area.
- Electronic health record (EHR) systems: Healthcare providers rely on EHR systems to manage patient medical information and treatment history. Ensuring the accurate and timely processing of this data is essential for patient care, making the Processing Integrity TSC applicable in this context.
- Customer relationship management (CRM) systems: CRM systems help businesses manage their customer records, manage interactions, and analyze customer data for insights. Accurate and timely processing of customer data is vital for maintaining strong relationships, making the Processing Integrity TSC relevant for CRM service providers.
- Online learning platforms: Educational institutions and corporate training programs rely on online learning platforms to deliver courses and track student progress. Ensuring the accurate and timely processing of assessment data, enrollment information, and course materials is crucial, making the Processing Integrity TSC applicable in this scenario.
- Utility billing systems: Utility companies require accurate and timely processing of customer usage data, billing calculations, and payment processing, to generate bills and manage services. The Processing Integrity TSC is relevant for utility billing systems, as it provides assurance of their commitment to maintaining data integrity in this essential process.
- Airline reservation systems: In airline reservation systems, Processing Integrity guarantees accurate and secure processing of flight bookings, ticketing, and fare calculations.
- Stock trading platforms: In stock trading platforms, Processing Integrity is crucial for ensuring the accurate and timely execution of trades, settlements, and reporting.
- Electronic voting systems: In electronic voting systems, Processing Integrity ensures the accurate, secure, and timely processing of votes, preventing unauthorized access or tampering.
- Online banking systems: Processing Integrity is essential for online banking systems to guarantee accurate, secure, and timely processing of financial transactions and account updates.
- Mail services and mailroom management: In organizations that handle significant volumes of physical and digital mail, the accurate, complete, and timely processing of mail, including the accurate sorting and delivery of mail is crucial for effective communication and business operations.
Is the Processing Integrity TSC applicable if data only passes through an application?
Yes, the Processing Integrity TSC can still be applicable even if data only passes through an application. In cases where an application serves as an intermediary or conduit for data transmission, ensuring the accurate, complete, and timely processing of data remains essential for maintaining the integrity of the data. If an application is responsible for transmitting data between different systems or components, it is important to ensure that the data is not altered, lost, or delayed during transmission.
The Processing Integrity TSC is applicable in situations where a service organization’s customers depend on the accurate, complete, and timely processing of data by their system. By adhering to this category, service organizations can demonstrate their commitment to maintaining data integrity, which is essential for building trust and confidence with customers, clients, and partners. Understanding when the Processing Integrity TSC is applicable and ensuring compliance can help organizations foster strong business relationships based on transparency and accountability, while minimizing the risk of errors and discrepancies in data processing.