What is CVV – Card Verification Value Explained

You’ve probably filled your wallet with many interesting things. There might be photos of loved ones, some banknotes, and coins, and, of course, there are your debit and credit cards. Although small and thin, these little pieces of plastic contain a significant amount of information that you might not be aware of.

There’s not only the Permanent Account Number (PAN) embossed on the front of the card but there’s also your name on it, the expiry date, and the CVV number, amongst others. If you’re wondering what CVV is and how it serves you, then this post is for you!

What is a CVV?

Card Verification Value (CVV) is also known as Card Security Code (CSC).

In essence, CVV is a three-digit code (although it can sometimes also be a four-digit code) that’s mostly found on the back of your credit and debit cards next to the signature panel. Similarly to a sort code, it’s a security element used in banking and financial transactions. 

The CVV is a unique number that helps protect your credit or debit cards and prevent unauthorised transactions.

Contrary to popular belief, this code isn’t generated on a random principle. It relies on advanced and sophisticated algorithms that help create a number specific to the card, taking into account things like the credit card number, expiration date, and others. 

Naturally, a credit card CVV number will change every time a person replaces their card. 

Where to find your card’s CVV code?

The positioning of your CVV code can differ based on the type of card you use.

For example, Visa, Mastercard, and Discover position the CVV number at the back of the card. This is usually the last number on the signature strip. On the other hand, American Express locates its security codes on the card’s front, just above the account number. 

What is dynamic CVV

When discussing CVVs, it’s important to note that they can also be dynamic. 

Unlike static CVVs that are permanent, dynamic CVVs are temporary card verification codes that undergo frequent changes. They can easily be compared to two-factor authentication codes, offering a reliable way to stay secure in the realm of online payments. 

In most cases, you can acquire a dynamic CVV via your banking app.

But what is the purpose of this CVV number?

In short, you can use it for card-not-present transactions where you’re making a purchase over the phone or online. It was introduced in order to provide retailers and merchants additional proof that it’s actually you who is using your card, and not someone who might have stolen your information.

With so many numbers on such a small piece of plastic, it might be easy to get confused and think that the CVV number is your PIN or Personal Identification Number. But this is not the case. A PIN number is usually four digits or longer and we use them for withdrawing cash from ATMs with debit cards or for cash advances with credit cards. 

In fact, while a PIN is usually user-created, CVVs are automatically generated by your card issuer and are then printed on the plastic. You as a cardholder have no control over your CVV number, as opposed to your PIN number. 

What’s more, is that no two cards have the same one. This is an issue related to security. This means that even if your card expires and they issue you with a new one, your new card will have a brand new Card Verification Value on it even though your cards look the same. 

For security reasons, the CVV number is used to show merchants that it’s really you who’s using your card. 

Online portals, for example, may not store any information about a cardholder’s Card Verification Value number as this is against the PCI DSS rules. Therefore, even if you enter your card information on a payment gateway, and even if your card details are stored there, the CSC number never will be. This move makes it much harder for anyone to steal your personal details, identity, or funds.

Different issuer acronyms

Another important thing to understand about CVVs is that they can come in the form of different acronyms. Although CVV is the most popular and standard version, different card issuers rely on different acronyms, such as CVV2, CVC2, and CID. 

Here’s what you need to know about each one. 

Visa (CVV2)

CVV2 is a three-digit number used by Visa. 

It’s positioned on the back of Visa credit and debit cards. The code is placed at the end of the card number, close to the signature box. 

Mastercard (CVC2)

On the other hand, CVC2 stands for Card Verification Code 2 and is used by Mastercard. It’s also a three-digit code that’s located on the back of credit and debit cards issued by Mastercard.

Card owners can also find this code close to the signature panel. Just like CVV2, the “2” in the acronym suggests a second iteration, specifically for online and remote transactions.  

American Express (CID)

Finally, the CID or Card Identification Number is used by American Express and Discover. For American Express cards, this is a four-digit CVV located on the front of the card, above the card number. 

For Discover, the CID is a three-digit code located on the back of the card, just like in the case of CVV2 and CVC2. 

What is the difference between CVV and CVV2?

Overall, CVV and CVV2 represent the same thing – a security feature designed to protect against fraud in credit and debit card transactions.

The main difference between the two is the terminology and the fact that CVV2 is used by Visa. The “2” in the abbreviation represents a second-generation algorithm, indicating that the code is an improvement of the earlier systems of card verification. 

In that sense, it could be said that CVV2 applies to more modern card security standards.

The importance of a CVV number and how does it protect you?

As mentioned above, a CVV number is key for ensuring protection against credit card fraud. 

It can protect you in two key ways:

• Defence for online shopping: although chip technology has dramatically reduced risks associated with physical card fraud, CVV adds an extra layer of protection for online purchases, where physical card presence is not a requirement. The code is equally as powerful for in-store shopping. In the case that an individual clones your card or skims data, without access to your CVV, they won’t be able to use your card information for online shopping.
• Security in case that your debit card number is stolen: if your card number is stolen, someone might attempt to conduct unauthorised purchases. The CVV makes sure that they won’t be able to complete an online or remote transaction without providing the code. 

In most cases, merchants don’t have permission to store CVV numbers with your card information. This ensures that even if a retailer’s database has been hacked, your card is safe. 

9 ways to keep your CVV safe

You might think that since you have a Card Security Code, you’re safe from online hackers and any fraudulent activities. But we’d advise cardholders to be careful out there. 

The world is full of malicious individuals who are after your funds and identity. Therefore, we recommend that you take some steps to keep yourself and your card’s CVV safe online. 

Here are 9 ways you can protect your CVV:

• Install legitimate antivirus software on your PC: such software will scan for viruses, keyboard-logging software, and other tools that fraudsters typically use to steal personal information. If you aren’t sure which software to use, better consult with specialists.
• Protect your home’s Wi-Fi network with a password: this will prevent others from connecting to it, monitoring your internet traffic, and tracking your information. Also, consider using a VPN when you’re away from home to protect your personal information.  
• Use a safe password manager: these tools can help you create and store your strong and unique passwords for each site used. This is an effective way of boosting your online security. One example of such a password manager is LastPass. 
• Avoid auto-filling and saving your personal data on websites: it might seem more convenient but actually taking the time to type in your details afresh whenever you visit a new website or online merchant can be one way of protecting you from identity theft. It’s also crucial that you don’t save your data on sites that don’t ask you for a CVV. 
• Ask your card issuer for a virtual credit card: this is a much safer option as the virtual credit card feature creates temporary account numbers that “mask” your actual card number. If hackers compromise your virtual number, you can easily dispose of it. 
• Shop at secure websites: check the beginning of the website’s URL and see if it starts with an https://. The “s” at the end of “HTTPS” stands for “secure”, which means your information will be encrypted. Also, check that there’s an SSL padlock in your browser window. 
• Don’t click on the links of suspicious emails: this is also known as phishing. Hackers use this method to try to gain your CVV by sending you an email that looks legitimate, but it actually leads you to a page they’ve created to steal your data. Whether the email contains a suspicious link or an attachment, always verify the source by contacting your bank or financial institution using an official phone number. 
• Check your statements regularly: by monitoring your accounts and checking your statements regularly, you can see if there’s any odd activity on your card/s. This way, you can report it to your card issuer quickly so they can either put a freeze on the card or take other necessary actions. 
• Never send your credit/debit card details in emails: online fraudsters can scan your emails, looking for card numbers. So never send these details to anyone via email. Also, never post photos of your cards on social media. 

Now that you know what a CVV is, it’s important not to underestimate the strength of your card’s security code. 

It’s an essential layer of safety for your in-store or online purchases and you need to be extra careful whenever you use it. Use the tips mentioned above to keep your CVC secure. And remember to stay safe online!

Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.