When we shop online, make payment through our debit or credit card & enter the payment gateway, we are often asked for our card number, the expiration date and the CVV number to authenticate the transaction. But what is a CVV number, how can you find it and why is it important? Let’s find out.
What is CVV Number?
CVV stands for Card Verification Number. It is a 3–4-digit number that is printed at the end of the signature strip/panel at the back of your credit or debit card. CVV number is an ant-fraud security feature that helps in establishing that you are in the possession of your card. This helps in ensuring that nobody else is illegally using your credit/debit card number without actually having the card. This helps in adding one additional layer of security to protect your sensitive information during online transactions.
How is CVV Generated?
The CVV number is not created at random by debit/credit card issuers (banks or other financial organisations), but rather based on the following information:
- Number of the card
- Code of Service
- Expiration Date of the Card
- Unique Code of the Issuer
The exact algorithms employed are unclear for obvious reasons.
How Does CVV Protect You from Identity Theft & Fraud?
For virtual payment gateways or online transactions, debit and credit cards are commonly utilised. It is illegal for these portals to save the cardholder’s CVV number. This implies that even if the merchants have your card information, they won’t be able to see your CVV. Because the CVV is not stored in databases, if your card information is stolen, the fraudster will be unable to use your card because they will be unable to access the CVV. As a result, CVV serves as a security layer, protecting your card from identity theft and other types of fraud.
Is the CVV Number & My PIN the Same?
No, the CVV on a debit card isn’t the same as the PIN. CVV is a three-digit numeric number permanently inscribed on the front or back of a credit or debit card that is used to give an extra layer of protection to transactions where the cardholder and the card are not physically present. It is unique to each debit card and cannot be changed by the cardholder.
A PIN (Personal Identification Number) is a four-digit number that the cardholder establishes. It, like the CVV, is not written on the card and is used as an extra layer of protection in transactions when both the person and the card are physically present.
Despite the fact that they both provide a layer of protection to monetary transactions, CVV and PIN are not the same. While CVVs are commonly utilised in online and phone-based orders, a PIN is used when the cardholder swipes their card physically.
The Conclusion
CVVs are used on all credit and debit cards to prevent fraudulent purchases made online or over the phone. Although CVV is more difficult to get than other card information, it does not always ensure 100% security. They aid in the prevention of fraud, although they are not without flaws. As a result, you must constantly take the appropriate steps to protect yourself whether transacting online or on your phone and never share the OTP, CVV or your PIN with anyone.