How CVV Combats Fraud

The age of credit cards had added convenience forthe card. Since the CVV is only listed on the actual
society, but also some very real risks of fraud andcard, the person using the card must have the card in
misuse. While shopping on the Internet, for example,their hand when charging a purchase.
there isn't anyone to match up the credit card with aMany online retailers have included a separate box for
driver's license or a face, and anonymity can meancustomers to fill out with the CVV in order to be sure
that anyone is using that credit card number.that the transaction is valid. When used along with the
To fight back, credit card companies are using securitycredit card number, more fraud is thwarted because
measures to be sure that the person buying items isit's a double check system.
actually the same person that is signed up for the cardWhile this doesn't help when the actual credit card is
and the bills that come to their house.stolen, it does help to cut down on transactions that
What is CVV?are made by those that hack into computer systems
CVV stands for Credit Verification or Validation Value.for credit card numbers. This information stealing used
All major credit card companies started using CVV into mean that thieves could charge hundreds of dollars
order to validate the identity of the user when theof merchandise without a problem, but now, they need
physical presence of the card or cardholder is noteven more information than they might be able to get.
necessary.Where else is the CVV used?
Visa and MasterCard include a three digit CVV on theAnd while the Internet has gotten the most attention
backs of their cards in the signature panel andfor the CVV, purchases over the phone or by mail
Discover does the same thing. American Expressorder can also be made more secure with this extra
includes a four digit CVV on the fronts of their cards ininformation.
varying locations.If you have trouble locating your CVV, you can
But how does this help with fraud?contact your customer service center with the number
The thing with the CVV is that it allows the retailer tolisted on the back of the card, but generally it's easy to
see that the customer is actually in the presence ofsee where there are extra digits on the card.