CVV Number – Meaning, Full Form, Working and Importance
What is a CVV Number?
The CVV (full form – Card Verification Value) is a three or four-digit number found on almost all debit and credit cards. It’s a unique number that’s assigned by the card issuer based on your debit card number, card expiry date, service code and the issuer’s unique code.
The CVV number on credit or debit cards adds an extra layer of security for the merchants as well as the customer. Providing CVV to the merchant helps them identify the cardholder and prevents online money fraud. For example, if a hacker has your card details except for the CVV, they won’t be able to make online transactions.
Where to Find the CVV Number?
For Visa and MasterCard, the CVV code is printed on the back of the card, either inside or above the signature strip. However, it may be printed on the front of some debit/credit cards, usually above the account number.
How Does the CVV Number Work?
The CVV code is used to verify that the person making the purchase has the card physically in their possession.
When making a purchase online, the merchant will ask for the card number, expiration date, and CVV code. The CVV code is typically required to complete the transaction and helps to prevent fraud by verifying that the person making the purchase is a legitimate cardholder.
The CVV code is generated by the card issuer and is unique to each card. It is designed to be difficult to copy or counterfeit.
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What is the Purpose of the CVV Number?
The main purpose of CVV is to provide an extra layer of security, especially for online transactions. The number works as an identification tool that helps merchants identify the legitimacy of the customer.
Similarly, it also protects the customer from identity theft and unauthorised transactions. Having a CVV means you and the operating merchant are protected from fraudulent credit and/or debit card transactions.
What are the Components of a CVV?
There are two primary components in a CVV. Given below are the details:
- A striped magnetic strip covers the first part of the CVV, which consists of important data related to the debit card. An individual can recover this information only after swiping the debit card through a magnetic reader machine.
- The second part of the CVV comprises digits that a user has to enter while making online or telephonic transactions. This acts as a debit card’s security number and prevents unauthorised usage.
Importance of a CVV Number
The significance of a CVV number on a debit card is discussed further below:
- A debit card’s CVV number is an additional security feature that helps protect the user’s data.
- The presence of the CVV number confirms that the person performing the online transaction has physical possession of the debit card.
- Since you cannot save the CVV number on a debit card, it is secure.
- Even if their debit card information is saved on the portal, the user must enter the CVV number every time they make a payment.
How is the CVV Number Generated?
The card issuer – banks and financial institutions – generates a CVV number for a card based on the below parameters:
- Card Number
- Service Code
- Issuer’s Unique Code
- Card Expiry Date
What is the difference between a Card CVV and PIN Number?
| Card CVV | Pin Number |
| Can only be given by the bank | Users can set their own PIN |
| Remains the same | Can be changed by the user |
| Needed for online transactions | Uses can be online or offline |
| Each CVV is unique for users | Multiple cards can have the same PIN |
| It consists of either 3 or 4 digits | It is always a 4-digit number |
How Does CVV Number Protect You from Card Frauds?
While making online transactions, a CVV number is entered to authenticate the payment.
This requirement does the trick and ensures that the card cannot be hacked. However, it is essential to note that payment sites cannot store these CVV numbers.
Over the past 2 decades, several data privacy standards, certifications and compliance requirements including the Payment Card Industry Data Security Standard (PCI DSS), have ensured merchants do not hold CVV2 information after the individual transaction is completed. Similarly, payment gateways and service agents involved in the payment process are also not authorised to have CVV2 data.
Further, since the CVV2 information is not contained within the magnetic strip on the card, it is not recorded or stored during a physical transaction.
Hence, when a database of transactions is extracted with the card number or expiry dates, no one would have access to complete a payment transaction with the data in hand as the CVV2 information is missing.
Alternative Names for CVV
CVV happens to be the most commonly used term. However, this verification value is sometimes also referred to as Card Security Code (CSC).
In fact, each card issuer has a different name for the CVV number. This number is sometimes referred to as a Card Identification Number (CID) or Signature Panel Code (SPC). Some examples are as follows:
- CVD or Card Verification Data in the case of Discover Cards
- CVC2 or Card Validation Code in the case of MasterCard
- CVV2 or Card Verification Value 2 in the case of Visa
- 3CSC or Card Security Code in the case of Amex
There are several regional translations of this code in various languages worldwide. However, all of them refer to the same security code that provides the same level of security irrespective of the nomenclature of the issuing bank.
What Could Happen If You Enter the Wrong CVV Number?
There’s no reason to panic if you enter an incorrect CVV number while making an online purchase with your credit or debit card. At the most, the merchant will decline the transaction if you enter the wrong CVV number.
Why Do You Need a Credit Card CVV Code?
During online transactions, vendors or payment sites request a credit card CVV number to confirm the authenticity of the person making the transaction. It is seen as an identification or verification code that proves that you are the rightful owner of the card. It also shows that you have been or have the card.
As fraudsters find it increasingly easy to recreate fake credit cards, this CVV words as an extra tier of security that the cardholder can use to demonstrate their ownership over the credit card.
Hence, for all online transactions or transactions where the card is not present and is used digitally, you would require a CVV number before proceeding to complete the payment.
Final Word
CVV is a security feature found on credit and debit cards that are designed to prevent fraudulent transactions. CVV codes are typically three or four-digit numbers printed on the back of the card, and they are used to verify that the person making the purchase actually has the card in their possession.
While CVV codes can help prevent credit card fraud, it’s important to remember that they are not foolproof. Fraudsters can still steal CVV codes along with other sensitive information, and it’s important for consumers to be vigilant about protecting their credit and debit card information.
It’s important for consumers to take additional steps to protect their sensitive financial information, such as monitoring their accounts regularly and reporting any suspicious activity immediately.
FAQs
The CVV number is located on the back of your credit or debit card on the right of the white signature strip. However, it must be noted that on some cards, it may be located on the front as well. For Visa and MasterCard, it is always a 3-digit code located at the back.
No, users cannot set their own CVVs. It is the responsibility of the card issuer to generate it and print it on the card’s back. When a financial institution issues a new card, they generate a temporary PIN as well, which the user can change later. However, this is not the case with CVV codes.
The main purpose of a CVV code is to safeguard online transactions, and it does so effectively. Most online retailers require CVV codes if you wish to purchase from them. There are regulations that prohibit online stores from misusing sensitive financial data. However, it is a good idea to stick to well-established and reputable websites.
In order to protect your card information while making online purchases, you should stick to the websites of reputed companies and use passwords for credit/debit card transactions. An important suggestion would be to avoid online transactions via public WiFi. Check your accounts regularly and hide your CVV number.
Yes, CVV numbers and PIN numbers are two different things altogether. A CVV number is a 3 or 4-digit code that users cannot change. Moreover, it is used for online transactions only. On the other hand, a PIN number can be changed by the user and used for both online and offline transactions.
Your CVV is the three or four digit number available on the back side of your debit card.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
