CVV, CVV2, CVC codes for Visa and MasterCard – How to find them and how are they used?

Whether it comes to CVV CVV2 or CVC codes, all of those refer to the same thing – the CVV code on your credit or debit card. It is needed while carrying out an online payment or a transaction. It is the three- or four-digit number on the back or front of your debit or credit card, depending on which card issuing company you have taken your card from.

Where Can You Find These Codes On Your Card?

If you have a card from Discover, MasterCard or Visa, you can find this numerical code on the card back – close to the signature space. It is a 3-digit code (in case of all of these card issuer companies) and allows an online merchant to confirm that you are actually the owner of the card and are in charge of the transaction. 

Keep in mind that this code is not transmitted when you tap, dip or swipe your card during a CPT or Card Present Transaction. This number offers one more security layer which helps merchants prevent various kinds of fraud and reduce liability risks. 

How Are These Codes Used?

If you are a merchant, when you accept payment online or over phone, this code serves as an extra way to confirm that the card holder is purchasing from you and has the card in possession. This has been done to keep in check the incidents of online fraud – that have been on the rise for a few years now. With a CVV code, merchants can prevent a chargeback. 

When does a chargeback happen? It occurs when a customer requests a reversal of funds from a payment – generally in case of an unauthorized charge. Chargebacks can occur for various reasons. Although a CVV code cannot protect a merchant from all of these, it offers a proof that the sale was indeed authorized by the customer, because one must possess this card the card for entering the CVV code. Thus, merchants can be protected from a friendly-fraud by such a code when a customer intentionally claims that he did not purchase from you (the merchant) at all. 

Also Read – What does Payment Processing mean and how Does It Work? 

For online shoppers, it can offer greater financial security and ensure that their cards cannot be misused. You can shop online safely, assured that in the absence of your CVV code, which cannot be stored by online merchants, your money cannot be extracted from your bank.