Full Form of CVV – Card Verification Value
The full form of CVV is the Card Verification Value. CVV (also termed as CSC (card security code) or CVN (card verification number) or CVC (card verification code) or CVD (card verification data)) can be defined as a combination of security features that are used in debit, credit, and ATM cards for eliminating or minimizing the possibilities of fraud and establishing the identity of the owner of the card.
Purpose
The purpose of a card verification code or CVV is to minimize the risks of fraudulent transactions by establishing the cardholder’s identity. Users largely use credit and debit cards for online shopping or for making other payments, such as bill payments, etc.
Online portals are not allowed to save the card verification number provided in the credit and debit cards. This means that even if the portals have all the details concerning the cardholders’ debit or credit card, it still cannot access the card verification number unless the latter does not type it separately for confirming the payment transaction. This makes it impossible for others to access the card information for initiating payments without the cardholder’s authorization and safeguarding him or her against potential fraud.
Characteristics
The characteristics of the CVV number are as follows:
- CVV is a three-digit number on MasterCard, Discover, and VISA debit cards, credit cards, and ATM cards while a four-digit number on American Express debit or credit cards.
- CVV is provided at the back of the MasterCard, Discover, and VISA debit cards, credit cards, and ATM cards while displayed at the front of the American Express debit or credit cards.
- A CVV acts as a security feature for “card not present transactions.”
Types
The two types are as follows:
#1 – CVV1:
CVV1 is used in card-present transactions to verify if the data is valid and issued by a banking institution. It is provided in the card’s magnetic stripe.
#2 – CVV2:
CVV2, unlike CVV1, is a code printed on the card. It is used in the case of a card, not present transactions such as mail order/ telephone order (MOTO) or internet, and acts as an added security feature for preventing potential frauds.
Location
A card verification value number can be found on debit and credit cards. A CVV is a three-digit number provided in the magnetic stripe of a debit or credit card. CVV can be located as a three-digit number provided at the back under the magnetic stripe of the MasterCard, Discover, and VISA debit cards, credit cards, and ATM cards. In the case of an American Express debit and credit card, the CVV number can be found as a four-digit number provided at the front right side of the same.
Importance
A card verification value is of huge importance in today’s world, where most shoppers prefer to shop for everything online. This is why most businesses are selling their products online to cater to more and more customers and adjust to today’s requirements.
Not only shopping, but people also tend to pay their bills like credit card bills, electricity bills, telephone bills, mobile recharge, insurance bills, etc. online. This saves them a lot of time and from harassment since the users with Digitalization can pay their dues, bills, or even go shopping anytime and that too anywhere without needing to go out and stand in long queues and wait for their turn.
But with growing Digitalization and online transactions, the scope for fraud has also risen. With the rise in frauds, the security mechanism in executing online transactions has also been constantly enhanced to safeguard the users from robbed. Debit and credit cards come with a CVV, which acts as an added security feature in initiating online transactions.
Online portals cannot save this vital information of the cardholders, and therefore, the users will have to provide the CVV for initiating the transactions online manually. Online portals can save other cardholders’ details but will not have access to the CVV provided in the previous transaction. This safeguards the cardholders from potential frauds and secures their online transactions. A CVV code prevents and eliminates fraud and protects the cardholders from data breaching.
CVV vs CVV2
CVV and CVV2 differ from each other on various parameters.
- A CVV2 is a type of CVV, and it is used for card, not the present type of transactions. On the other hand, a CVV can either be a card not present and card-present transactions.
- CVV is the short form used for card verification value, whereas CVV2 is the short form used for card transaction value 2.
- A CVV is a three-digit number displayed on the MasterCard, Discover, and VISA debit cards, credit cards, and ATM cards/ four-digit numbers displayed on the American Express debit and credit card, and it acts as an added security feature during online transactions. On the other hand, a CVV2 is a three-digit number generated during the second process, which is why it becomes more difficult to guess the same correctly.
Benefits
The benefits of CVV are provided as follows:
- Minimizes Fraud: CVV minimizes the possibilities of fraud and protects cardholders against the same. Online card transactions cannot be executed without a CVV. Hence, the users will have to manually provide the CVV for initiating the payment from their bank accounts.
- Safeguards from Data Breaching: CVV protects the cardholders from data breaching. It disallows the online portals to save the CVV of the shoppers. The shoppers will need to insert their CVV every time they are making an online transaction. The online portals can save other information but not CVV and the four digits pin for the card.
Conclusion
A CVV can be regarded as an added security feature in online transactions. It is a three-digit number and is mentioned in the backside of the MasterCard, Discover, and VISA debit and cards. In the case of an American Express branded debit and credit cards, a CVV is a four-digit number, and it is displayed at the front. A CVV can be of two types CVV1 and CVV2. CVV1 is used in a card-present transaction, while CVV2 is used for card, not present transactions.
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This has been a guide to the Full Form of CVV and its definition. Here we discuss the characteristics, types, and location of CVV along with importance, benefits. You may refer to the following articles to learn more about finance –
