CVV, also known as Card Verification Value, is a numeric code that provides an additional layer of security in credit and debit card transactions. It is typically a three-digit number printed on the signature strip of a card or displayed in a separate box on the front or back of the card.
The primary purpose of CVV is to verify that the cardholder possesses the physical card being used for the transaction, reducing the risk of unauthorized or fraudulent usage. It helps authenticate the card's legitimacy and ensures that the information being provided during online or telephone transactions is indeed from the cardholder.
CVV is not encoded in the magnetic strip or the chip of the card, making it less vulnerable to skimming or cloning attempts. It acts as a token for verifying the card's presence during card-not-present or remote transactions, where the cardholder is not physically present.
When making online purchases or other card-not-present transactions, the CVV is typically required along with the card number and expiration date. It is specifically designed to be difficult to obtain without possessing the physical card, providing an extra layer of security against fraudulent activities. Merchants are often prohibited from storing CVV information to further protect cardholders' privacy and reduce the risk of data breaches.
In summary, CVV is a three-digit code used to authenticate credit and debit cards during remote transactions. It helps minimize the risk of fraudulent usage and ensures that the cardholder possesses the physical card being used.
