What is the best way for a merchant to reduce their scope in compliance?

Using a council listed P2PE (Point-to-Point Encryption) solution is the best way for a merchant to reduce their scope in compliance. P2PE encrypts cardholder data at the point of interaction and keeps it encrypted throughout its transmission to the payment processor, effectively mitigating the risk of data breaches. This method substantially lowers the amount of sensitive card data that the merchant environment is exposed to, thereby reducing the scope of the Payment Card Industry Data Security Standards (PCI DSS) compliance requirements.

By employing a certified P2PE solution, merchants can also minimize their liability regarding handling and storing cardholder data, which is crucial for maintaining compliance with PCI requirements. It simplifies the compliance process since less sensitive data is handled or stored, leading to a streamlined approach in meeting security standards.

The other options, like implementing cash-only transactions, would reduce cardholder data handling but might not be practical for most merchants. Storing cardholder data for future sales increases compliance obligations and risks. Limiting employee access to card data is important for security but does not encompass the same level of scope reduction that P2PE offers.