While making a purchase online or over the phone, you’ll notice that yourcredit card’s numberand expiration date are not the only info you need. There’s a security feature called a CVV, or card verification code, that the vendor will require in order to process the transaction. Here’s how to find your CVV and why it’s so important.
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A credit score isn’t a static number and there are several factors that go into calculating it. The credit bureaus use their own proprietary algorithms and calculate their own credit scores. Equifax uses the Equifax Risk Score, while TransUnion uses the CreditVision Scoring Model. They are provided as guidelines to the issuer, which may take different factors into account, and approval is not guaranteed.
What Does CVV Stand For?
CVV stands for card verification value. It’s a three- or four-digit number found on most debit andcredit cards.
There areseveral other acronyms for this security feature within the industry.
| Acronym | Definition | Issuer |
|---|---|---|
CID | Card Identification Number | Discover |
CVC2 | Card Validation Code | Mastercard |
CSC | Card Security Code | Debit Card |
CVV2 | Card Verification Value 2 | Visa |
The Purpose of CVVs
Sincechip-enabled card technologyhas managed to sharply cut back on physical card fraud, criminals have shifted their focus to thedigital realm. Creating fake cards has given way to online information theft. Enter the CVV, which banks and credit card issuers use to reduce fraudulent digital transactions.
There are two CVVs associated with most debit or credit cards. The first is encoded in the magnetic strip used for in-person transactions; the second is visible on the card. This is the one you must input when making an online purchase.
While it can be comparatively easy for skilled hackers to gain access to credit card numbers and expiration dates, CVVs are much more difficult to track down. This is largely due to industry regulations. According to PCI (Payment Card Industry) standards, merchants may store your credit card number and expiration date, but they cannot store your CVV. So, while you may not like to enter the number for each online transaction, doing so is what provides that extra layer of security.
Where Do I Find the CVV?
Finding your CVV depends on the type of card you have.For Visa, Mastercard and Discover cards, you’ll find the three-digit code on the back, usually inside or just above the signature strip. American Express does things differently, placing a four-digit CVV on the front, above the Amex logo.
Is There a Difference Between a CVV and a PIN?
A PIN is a user-created “personal identification number.” Most of the time a PIN is four digits, though some banks require longer numbers. Credit cards use PINs for cash advances and purchases when you insert the card in the card reader rather than tap, while debit cards use them for withdrawing cash or initiating a purchase. Neither of these PINs is the same as a CVV.
CVVs are automatically generated by the credit card issuer and are printed on the card. While a bank may initially provide a PIN when your debit or credit card is issued, it’s only temporary. In most cases you will be required to change it to a number you designate. You have no such control over a CVV.
Does a New Card Have a New CVV?
As a matter of security, generally, no two cards have the same CVV. If yousign up for a new credit cardor replace an existing one, you’ll end up with a new code; the same applies if your current card expires and you receive a replacement. Even if your credit card number is exactly the same, you will still have a different CVV.
How Are CVVs Generated?
As it turns out, CVVs are not random three- or four-digit numbers. Rather, banks generate them using four pieces of information: primary account number, four-digit expiration date, a pair of DES (Data Encryption Standard) keys and a three-digit service code. For obvious reasons, the precise algorithms used are unknown.
How Can I Protect My CVV?
To avoid becoming a victim of credit card fraud, you should protect your CVV like any other important piece of financial information. Here are seven simple ways to prevent your CVV from falling into the wrong hands.
- Install anti-virus software on your computer.This will scan for viruses, keyboard-logging software and other tools that hackers use to steal personal information.
- Password-protect your home’s WiFi network.If you don’t, anyone within range can connect, monitor your internet traffic and track any information you send.
- Only enter your credit card information on trusted websites.Avoid websites without “https:” in the address; the same goes for those that don’t show theSSLpadlock in your browser window.
- Use a VPN when browsing away from home. Although this might be overkill at home, when travelling or using public WiFi you shoulduse VPNsoftware to protect your personal information.
- Don’t share photos of your credit card, either with friends or on social media.Someone could make unauthorized purchases using your card data.
- Ignore unsolicited requests for your personal information.If someone requests your credit card information by phone or email, ask why they need it. If sensitive financial information needs to be transmitted in this way, it’s generally better if you’re the one to initiate the interaction.
- Check your account activity regularly.Review your transactions online or when the statement comes in the mail to ensure that you approved each one. If there’s a charge you don’t recognize, contact your bank immediately. You may need a new card.
Featured Partners
1
MBNA True Line® Mastercard®
On MBNA’s Website
Welcome Bonus
None
Annual Fee
$0
Regular APR (Purchases) / Regular APR (Cash Advances)
12.99% / 24.99%
2
RBC Cash Back Mastercard
On RBC’s Secure Website
Welcome Bonus
None
Annual Fee
$0
Regular APR (Purchases) / Regular APR (Cash Advances)
20.99% / 22.99%
Credit Score:: 640+ Fair to Excellent
A credit score isn’t a static number and there are several factors that go into calculating it. The credit bureaus use their own proprietary algorithms and calculate their own credit scores. Equifax uses the Equifax Risk Score, while TransUnion uses the CreditVision Scoring Model. They are provided as guidelines to the issuer, which may take different factors into account, and approval is not guaranteed.
EMV Chip Cards and Dynamic CVV
Banks and merchants stepped up security for in-person transactions with the introduction of chip-based debit and credit cards. This technology enables the internal code to change each time the card is read, a vast improvement on the magnetic strip. Not surprisingly, this has been very effective at reducing fraudulent activity.
But what about CNP (card-not-present) transactions, such as those taking place online or over the phone? Clearly a physical chip will not be helpful; this is why there is a CVV printed on your card. However, the most skilled criminals are sometimes able to access CVVs, even though merchants are prohibited from digitally storing them.
The proposed solution to this problem is called dynamic CVV, since it would allow the printed code to change at a set time interval. This would happen on a miniature lithium battery-powered screen on the back of the card. This may seem like a guaranteed success, but while the technology has clear advantages, it isn’t perfect. Selecting the frequency of the code change has its difficulties, and the cards would likely be four to five times more expensive to produce than current models. That said, the fraud savings could more than make up for the increased production costs.
Accordingly, other methods of generating dynamic CVVs have been developed but none have seen widespread implementation yet.
Related: Virtual Credit Card Numbers: The Complete Guide
