A card security code is a 3- or 4-digit number printed on a credit or debit card and used as part of identity verification in card-not-present transactions.

Businesses can ask customers to provide this code when making an online purchase, but they aren’t allowed to store it. So the data can’t be hacked or stolen in a security breach.

If you ask for the card security code during checkout and the information provided matches what’s on file with the issuing bank, it probably means the customer has the physical card in hand — which reduces the likelihood of an unauthorized transaction. But if you don’t ask for the card security code, you run the risk of processing unauthorized transactions made by fraudsters with stolen card data.

Each brand handles card security codes different — the name, length, and placement:

• Visa – Card Verification Value (CVV) is three digits and printed on the back of the card
• Mastercard – Card Verification Code (CVC) is three digits and printed on the back of the card
• American Express – Card ID (CID) is four digits and embossed on the front of the card

Not only can card security codes help prevent fraudulent transactions, the data can also help you challenge friendly fraud chargebacks. If a cardholder falsely claims a purchase was unauthorized, you can respond with your card security code data (a positive response code sent by the issuer during the authorization process). A positive response to a CVV check can help you win a Visa chargeback response.

AltoPay can help you implement and manage card security codes in a way that won’t interfere with conversion rates. We can also help you incorporate CVV data into your chargeback response packages so you can recover lost revenue.