November 26, 2018 | Posted by: Moneymax | Credit Card
November 26, 2018
When making purchases with your credit card, you must wonder how your credit card provider prevents you from fraud.
There are several layers of security that prevent fraud and overcharging in a credit card. One of the things that help this process are the three numbers on the back of your card – the credit card CVV.
The CVV or Card Verification Value is an authentication procedure that credit card companies use to reduce fraud, especially with the prevalence of transactions made online. It functions as the main security feature for “card not present” transactions.
For Visa, Mastercard, and other credit card brands, the CVV is the reverse-italicized string of three numbers on the back panel of your credit card, after the 16-digit account number. American Express is an exception as they use four digits.
Some banks and cardholders call it as Card Security Code (CSC), Card Verification Data (CVD), Card Verification Value Code, or Card Verification Code (CVC). The reason for these different names depends on the credit card brand. For example, Discover and American Express refer to it as “CID” or Card Identification Code.
Developed by Michael Stone in 1995, the CVV was originally an 11-character alphanumeric code. The UK Association of Payment Clearing Services adopted the code and eventually revised it to three-digits. MasterCard was among the pioneers, issuing CVV numbers on their cards starting in 1997. American Express issued them in 1999 in response to the growth in transactions made online. Visa in the United States began issuing them in 2001.
Credit card providers like Citibank, BPI, and Metrobank require merchants to ask for your card’s CVV when processing “card not present” transactions. When you report a stolen credit card, the three-digit code prevents the unauthorized from using your card and stealing your information.
There are a few types of codes in CVV but the main three are as follows:
When using your credit card, be aware of your surroundings and the merchant you’re transacting with. Prevent credit card fraud. Ensure the security of your information by keeping an eye on your card at all times. Also, consider upgrading to an EMV-chipped credit card, which adds a second layer of protection against possible theft.