Which of the following statements about service providers is true?

The statement that a service provider may also be a merchant is accurate because the terms 'service provider' and 'merchant' are not mutually exclusive. In practical terms, a business can function as both a merchant, which processes payment card transactions, and as a service provider, which offers services such as payment processing or information security. This dual role is common in the industry, especially with businesses that may provide their own payment processing solutions or utilize third-party systems while also servicing customers directly.

Understanding the nuances of these roles is crucial, particularly for compliance with PCI Data Security Standards, as both merchants and service providers need to adhere to specific security requirements to protect payment card information. As a result, recognizing this overlap is essential for anyone preparing for the PCI compliance landscape and understanding their obligations within that context.