The card verification value (CVV2), also sometimes referred to as a card security code (CSC), is a three- or four-digit security code located on the back of most credit and debit cards. It is typically printed, not embossed, and usually found near the signature strip. For American Express cards, the code is a four-digit number located on the front of the card, typically above the embossed account number. This code serves as an added layer of security for transactions where the physical card is not present, such as online or phone purchases.
The purpose of this code is to verify that the individual making the purchase has physical possession of the card, thereby reducing the risk of fraud. Merchants are often advised not to store this code, meaning that a potential data breach of a merchant’s database will not expose this critical piece of security information. Its use helps to protect both the cardholder and the merchant by decreasing the likelihood of unauthorized transactions. The implementation of this code was a response to the increasing prevalence of card-not-present fraud in the early days of e-commerce.
