In today’s digital age, online transactions have become quite common. Be it online shopping or bill payment, we often use our debit or credit cards. In such a situation, security of card information becomes very important. Security Code or CVV is a code that protects against fraud and confirms the identity of the person using the card. This is a 3 or 4 digit code which is present on the back of the card.
What is security code?
Security Code or CVV (Card Verification Value) is a 3 or 4 digit code present on the back of a debit or credit card. This provides an additional security layer beyond the card number. When a person makes a purchase online or over the telephone using the card, the seller asks for the CVV number. To ensure that the cardholder actually has the card and that it is not being misused.
Where is the security code found?
The security code on Visa, MasterCard, and Discover cards is located in the signature area on the back of the card. It is a group of 3 or 4 digits to the right of the card number. Whereas, on American Express card, this 4 digit code is present on the front right side of the card.
How does the security code work?
When a person makes an online purchase, the seller asks for the CVV number. This number helps the seller in the authentication process of the card.
The seller checks the CVV number to ensure that the cardholder actually holds the card. Since the CVV number is present on the card, it is impossible to know it without the card.
If the customer provides the correct CVV number then the merchant assumes that the cardholder is actually carrying out that transaction. Thus the CVV number provides protection from fraud and counterfeit transactions.
History of security codes
- Security codes began in the 1990s. At that time the Internet emerged and online shopping started becoming popular.
- MasterCard began issuing CVC2 numbers in 1997. By 2001, Visa in the US also implemented it.
- In 1999, American Express began using security codes in response to increasing online transactions and cardholder complaints.
- Today all major credit and debit card companies are using security codes.
Security Code Limitations
- The security code provides additional security for online transactions but it does not provide complete security.
- If someone takes a photo of the card and sees the CVV number, he can know it.
- In some cases the seller may store the CVV number which may pose a security threat.
- Chip-based EMV cards generate their own dynamic security code which is more secure.
Some frequently asked questions related to security codes
Question 1 – What is security code?
Security Code or CVV is a 3 or 4 digit code that is on the back of a debit or credit card. This provides additional security in online transactions.
Question 2 – Who is the security code useful for?
Security code is beneficial for both the customers and the seller. This protects against fraud and prevents misuse of the card.
Question 3 – Where can the security code be found?
On most cards it is on the back of the card. On Visa and MasterCard it is on the right side of the signature strip. On American Express it’s the 4-digit code on the front right side of the card.
