The CVV2 code appears in different places on your card depending on the payment network.
Alternate Name: Card verification value, card verification code, card identification number, security code, CID number.Acronym: CVV2, CVC, CSC, CCID
How Does CVV2 Work?
Merchants ask for the CVV2 during a transaction to make sure that you actually have the payment card in your possession. If a thief gets your credit or debit card information, they’ll have a much harder time making fraudulent purchases without the CVV2 code. Or, if the CVV2 entered doesn’t match, the transaction may be declined. The code isn’t stored in your card’s magnetic stripe or EMV chip, so it’s not transmitted with your card information when you’re making in-person transactions as long as the card is swiped, tapped, or inserted into the credit card terminal. Instead, merchants and retailers usually ask for the CVV2 when you’re making online or phone transactions to ensure you have the card with you. Payment security standards prohibit businesses from storing the CVV2 code on their servers or in their records. This way, if your information is compromised in a data breach, you’re at less risk of being a victim of fraud even if the hacker gains access to your payment information. Not all retailers request the CVV2 code for purchases, so it’s still important to monitor your credit card and bank transactions frequently and report suspicious charges to your bank right away.
