When you use a credit card for online transactions, you might have noticed a small three- or four-digit number called the CVV on the back or front of your card. The CVV is a crucial security feature that helps protect your card from unauthorised use. Understanding what CVV is and how it works can give you greater confidence in your online and offline transactions, ensuring that your financial information remains secure.
What is a CVV in a Credit Card?
A CVV (Card Verification Value), on your credit card, is a three or four-digit number. This number is a security feature that keeps your credit card from undergoing any fraudulent activities, especially during online transactions. The CVV is a unique number printed on the back of your card and is essential to type in during any online transactions.
Where to Find the CVV Number on Your Credit Card?
The three or four-digit CVV number is printed on the credit card itself. If you have a MasterCard or Visa, the CVV will be three-digit and printed on the back of the card. But if you have an American Express card, the CVV will be four digits and will be printed on the front of the card. The CVV is usually printed beside your account number.
What is the Purpose of a CVV on Your Credit Card and Why is it Important?
Your CVV number serves as an essential safeguard against credit card fraud, adding an extra layer of security to your transactions. It helps merchants verify that the person using the card is indeed the cardholder. Given that credit card fraud is the most prevalent form of identity theft, as highlighted by the Federal Trade Commission (FTC), the CVV plays a crucial role in safeguarding your financial information.
CVV numbers are classified as sensitive authentication data. Merchants are obligated to protect this information and ensure that the CVV number is deleted once the transaction is approved. However, it’s worth noting that not every online retailer requires the CVV for purchases, and there may be instances where it does not fully shield you from credit card fraud.
How is the CVV Generated?
You might think CVVs are just some random machine-generated codes that every card uniquely has. But surprisingly, they aren’t just random three- or four-digit codes. Banks actually create them using four specific pieces of information: the primary account number, a pair of DES (Data Encryption Standard) keys, a four-digit expiration date, and a three-digit service code. The exact algorithms involved in this process remain confidential for security reasons.
How to Protect Your CVV and Credit Card
Your credit card is a financial tool that gives you an additional credit limit if you ever face a cash crunch. It’s important to keep it protected to avoid someone else misusing your credit limit to commit fraudulent transactions. Here’s how you can protect your CVV and your credit card:
- 01
Save Credit Card Information Cautiously
Storing your credit or debit card details online can streamline the checkout process but also increase the risk of unauthorised transactions if your account is hacked. To enhance your security, think about using virtual card numbers. These are connected to your main credit card account but provide a different number for online payments, adding an extra layer of protection.
- 02
Shop on Legitimate Websites
It’s important to recognise that not all businesses online are trustworthy. Avoiding sites that seem suspicious can significantly protect your information. When making a purchase, ensure that the website’s URL begins with “https://” (with an “s” at the end) or displays a lock icon before the URL. These indicators suggest that the site is secure and that your data is encrypted.
- 03
Stay Alert of Any Phishing Attempts
Have you ever received a suspicious text message that felt like a scam? Or perhaps a strange call requesting personal information? These are often types of phishing scams. Whether they come via email, text, or phone, staying vigilant against scams is essential. Always refrain from sharing personal details, your CVV, or clicking on dubious links.
Here are some helpful practices to follow:
- Only provide your account information over the phone if you’re certain of the caller’s identity. If in doubt, consider reaching out to the organisation directly.
- Never lend your card to anyone.
- Use multifactor authentication whenever possible to enhance your account security.
- Regularly monitor your accounts for any unusual activity.
- Keep your receipts and compare them against your monthly statements.
- When disposing of old cards, statements, and receipts, do so carefully to protect your information.
- 04
Use Password Managers
There are free password managers that will allow you to create as well as save your passwords for different websites. They even allow you to create unique passwords for each website.
- 05
Avoid Saving Your Personal Information on Websites
While this option offers convenience, it can become expensive if your information is compromised. The safest approach is to remove your card each time you make an online purchase to better protect your information.
- 06
Never Click Sketchy Links on Emails
Be cautious of emails that appear legitimate but ask you to enter your credit card information after clicking on a link. Only provide this sensitive information to trusted banks or retailers. Always verify that any communication comes from an official email address or phone number.
- 07
Keep Checking Your Credit Card Statement
It’s important to constantly check your credit card statement every month to be aware of any fraudulent activities being carried on your card. If you see any suspicious transactions on your credit card, make sure to inform your bank as soon as you find it.
Difference Between a CVV Number and PIN Number
A PIN, or “personal identification number,” is a code created by the user, typically consisting of four digits, though some banks may require a longer sequence. Credit cards use PINs for cash advances, while debit cards use them for cash withdrawals or purchases. It’s important to note that a PIN is different from a CVV. Unlike a PIN, which is temporary and user-changeable, CVVs are automatically generated by the credit card issuer and are printed directly on the card. While you can change your PIN to a number of your choice, you have no control over your CVV.
Below is a table that contains the main points of differences between a CVV and a PIN:
| Parameters | CVV | Pin Number |
| Full Form | Card Verification Value | Personal Identification Number |
| Digits | Three to four-digits | Four digits or more for some cards |
| Requirement | For online transactions | For offline transactions or cash withdrawals/advances |
| Validity | It is permanent, and you cannot change it unless you get a new card | Your bank generates it, and it is temporary, which can be changed by you |
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