What is a Credit Card CVV?

The CVV (Card Verification Value) is a security feature for credit card transactions, typically used in online or phone purchases. It is a three- or four-digit number printed on your credit card — separate from the card number.

1. Location: On Visa, MasterCard, and Discover cards, the CVV is a three-digit number on the back of the card, usually next to the signature strip. On American Express cards, it is a four-digit number on the front of the card.

2. Purpose: The CVV helps verify that the person making the purchase physically possesses the card, as it is not stored in most databases (like the card number might be). This reduces the risk of fraud in online or in other “card-not-present” transactions.

Here’s how a CVV helps protect you:

1. Prevents Unauthorized Use Without the Physical Card:

• The CVV is not stored in merchant databases when you make a purchase. Even if a hacker obtains your credit card number through a data breach, they would still need the CVV to complete a transaction.
• Since the CVV is physically printed on the card and not stored digitally, it adds protection in case your card number is compromised.

2. Reduces Fraud in Online Transactions:

• Many websites require the CVV as part of the payment process to verify that the buyer physically has the card. Without this code, it becomes difficult for a fraudster to make an online purchase, even if they have your card number.
• The CVV is not embedded in the card’s magnetic stripe or chip, meaning it is not transmitted during in-person transactions. This limits the possibility of it being stolen through skimming devices.

3. Stops Some Automated Fraud Attempts:

• Many fraudsters use automated systems to try different credit card numbers for purchases. However, without the correct CVV, those systems are less likely to succeed, as most websites won’t process transactions without the CVV.

4. Prevents Fraud in Case of Merchant Data Breaches:

• In the event of a merchant database hack, where your credit card number is stolen, the CVV is usually not part of the stored information. This ensures that the stolen data alone isn’t enough to make fraudulent purchases.

While the CVV adds an extra layer of security, it’s important to keep your card details, including the CVV, private to avoid fraud. Here are some tips for ensuring CVV safety:

1. Never Share Your CVV: Don’t share your CVV number with anyone, even if they claim to be from your bank or credit card company. Banks will never ask for your CVV number over the phone, email or text message.
2. Avoid Storing Card Information Online: While some websites offer the convenience of saving your card details, it’s safer to avoid storing both your card number and CVV on e-commerce platforms, as this data can be compromised in data breaches.
3. Use Secure Websites: Always ensure you’re shopping or entering your CVV on websites that use secure connections (look for “https” in the browser bar).
4. Monitor Transactions Regularly: Frequently check your credit card statements for unauthorized transactions. Many banks offer real-time alerts via text or email for transactions made on your account.
5. Enable Two-Factor Authentication (2FA): Some financial institutions offer two-factor authentication for online purchases, adding an additional layer of protection beyond just your card and CVV details.
6. Use Virtual Credit Card Numbers: Some banks provide virtual or temporary card numbers for online purchases, which can help keep your real card number and CVV safe from potential hackers.
7. Keep Your Physical Card Secure: Ensure that no one can easily see your card, especially your CVV, when making in-person transactions. If you lose your card, report it immediately to your card issuer.

As you can see, the CVV code significantly increases the safety of credit card transactions.  This can help protect the money that you’ve worked so hard to accumulate.  If you have credit card questions, or any other financial questions, we can discuss them in a no-charge, no-obligation initial meeting.  Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.

This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products.  Please consult your tax or investment advisor for specific advice.