Which regulation sets the global security standard for entities handling cardholder data?

The regulation that sets the global security standard for entities handling cardholder data is the Payment Card Industry Data Security Standard (PCI DSS). This standard was established to help organizations that accept, process, store, or transmit credit card information maintain a secure environment. PCI DSS lays out requirements for security management, policies, procedures, network architecture, and software design for organizations handling card data.

The importance of PCI DSS lies in its comprehensive approach to safeguarding cardholder data from data breaches and fraud. Compliance with these standards helps ensure that sensitive information is adequately protected throughout its lifecycle, which not only helps prevent data theft but also fosters consumer trust in payment systems.

Other options, although relevant in their own domains, do not specifically target cardholder data security in the same way that PCI does. For instance, the General Data Protection Regulation (GDPR) focuses on the protection of personal data within the European Union but does not specifically cater to cardholder security. Similarly, the Health Insurance Portability and Accountability Act (HIPAA) is concerned with the protection of health information, while ISO 27001 is a broader framework for information security management systems. Therefore, the specificity and focus of PCI DSS on cardholder data make it the correct answer.