Card Verification Value (CVV)

The Card Verification Value (CVV) is a three or four-digit security code that is printed on credit and debit cards. Also known as the Card Security Code (CSC), Card Verification Data (CVD), or Card Verification Number (CVN), CVV acts as an additional layer of security to protect against unauthorised card usage during online or card-not-present transactions.

Purpose and Importance

The primary purpose of the CVV is to verify that the person making the transaction possesses the physical card. It adds an extra level of security by requiring the cardholder to provide a code that is not typically stored on the magnetic stripe or chip of the card. This helps to prevent fraudulent activities where only the card number and expiration date are known.

CVV codes are not embossed or imprinted on the card, making them difficult to obtain through physical theft alone. They are typically found on the back of Visa, Mastercard, and Discover cards, while American Express cards display the CVV on the front. This placement ensures that the CVV is not easily accessible to someone who may have visually captured the card details.

Usage and Verification Process

When making an online or card-not-present transaction, the CVV is generally required to complete the transaction. It acts as a verification tool for merchants and payment processors to authenticate the card’s legitimacy. By requesting the CVV, the merchant can confirm that the person making the purchase has the card in their possession.

During the verification process, the CVV is transmitted securely to the card issuer’s system, where it is compared with the information on file. If the CVV matches, the transaction is more likely to be approved, as it demonstrates that the cardholder has provided accurate and valid information.

It is important to note that CVV codes are not stored by merchants or payment processors after the transaction is completed. This helps to protect customers’ sensitive information in case of a data breach. Additionally, CVV codes are not encrypted during transmission, as they are intended to be used as a one-time authentication method.

Enhancing Security

To further enhance security, card issuers have implemented additional measures. One such measure is the use of dynamic CVV codes. These codes change periodically, usually every hour, making them useless for unauthorised transactions after a short period. This adds an extra layer of protection against fraudsters who may have obtained the CVV through illicit means.

In conclusion, the Card Verification Value (CVV) is a vital security feature on credit and debit cards. By requiring the CVV during online or card-not-present transactions, card issuers and merchants can verify the authenticity of the card and reduce the risk of fraudulent activities. Customers should always keep their CVV confidential and report any unauthorised use of their cards promptly.