Ever been asked for a CVV on a Visa Credit Card and wondered what on Earth it is? Well, read on for all the facts.
The CVV is an authentication procedure that is used in so-called “card not present” transactions, such as those done over the phone, fax, or internet. The cardholder is asked to enter the CVV number in the order form or say it to the person taking the phone order.
This number is located on the back of the card and is a 3 or 4 digit number that is printed, but not embossed, at the end of the 16 digit printed account number. It appears on all Visa credit cards. The CVV code is not part of the card’s account number, and it is not embedded in the magnetic strip. The CVV code helps determine that the customer making the order is in possession of the actual card and that the account is legitimate. Though it may be called different things by different card companies, it works the same way.
If the customer is not in possession of the card or cannot for some reason give the CVV, then a flag is raised. At that time the merchant must make a decision whether to proceed with the transaction or not. Not having or not disclosing a CVV is not enough by itself to halt a transaction without human intervention.
While the CVV method of credit card verification is certainly useful, it isn’t perfect. In fact there are scams making the rounds that prey on the sense of security that the CVV confers, so before you apply for your credit card online, make sure you know the company procedures for security and protection.
Here is how it works:
Someone calls you and says they are calling from the Security and Fraud Department at Visa (or MasterCard or American Express). They’ll tell you their badge number or some other “official” sounding credential. He or she will say that your card has been flagged for an unusual pattern of purchases and they are calling to verify your card. This person already has your 16 digit credit card number.
Now that you’re alarmed, the caller says that they will be issuing a credit to your account. What they’re doing is making it seem as if they’re on your side so you let your guard down. They’ll say the credit will be sent to whatever your address is and ask if the address is correct.
At this point the actual scam starts. The caller says that he or she must verify that you are in possession of your card, and ask if you will turn the card over and ask for the last four digits of the card number and the three security numbers after the card number: your CVV.
The scam artist already has your credit card number, and if you “confirm” your CVV, he now has enough information to make card not present transactions, so be on your guard against this scam.
