A Self-Assessment Questionnaire (SAQ) is an important validation tool for all businesses that sell goods on the internet. These merchants are often required to complete an SAQ before they can be approved for a merchant service account. Let us take a moment to explain.

The process is actually quite simple. When a company wants to sell goods or services online, they must apply for a merchant service account at a bank or reputable financial institution. If accepted, the bank will be responsible for processing all of the company's online credit and debit card transactions.

But since the bank is liable for fraud, theft or unnecessary charges, they must make certain that the company's site is secure before they grant them a merchant service account. The tool that helps them verify that a business has a safe website is the Self-Assessment Questionnaire.

What does the SAQ ask? All of the questions focus on Payment Card Industry Data Security Standards and making certain that the company is complying with current rules and regulations. It is all a bit technical.

In short, when a company completes the questionnaire, it means that their security programs are up-to-date and the customer's credit card information will be protected from internet criminals. Most banks request a questionnaire at least once a year depending on the risk of the industry the client competes in.