A recent survey conducted by Experian in 17 countries reveals that every 1 person out of 4 people is a victim of credit card fraud. With the increase in the rate in online credit card transactions, the instances of frauds have also risen.
However, credit card issuers have also stepped up their security mainframe to combat these malicious forces. Safety measures such as CVV number and OTP alongside others are making online transactions safe. Therefore, individuals who are wondering what is CVV, here is a complete guide for them.
What does CVV mean?
The simplest answer to what is CVV is that it is a security code embedded in a credit card or debit card. Standing for Card Verification Value, CVV is a unique safety code that is present in the back of a card.
CVV may vary between 3 to 4 digits. Additionally, it is an integral part of the Secure Socket Layer (SSL) that issuers implement as an extra layer of security. Moreover, the use of CVV during online credit card payment notifies the financial institution of the transaction. As a result, they can authenticate the online transaction on their end to ensure the genuineness of the exchange.
However, CVV or Card Security Code (CSC) is not akin to the PIN number on a credit card. First of all, users get to determine their PIN number. Secondly, financial institutions set aside a hard-to-guess numerical combination for the CVV. Therefore, both the PIN number and the CVV code act as an impenetrable security cover against instances of online fraud. However, individuals should change the credit card PIN number from time to time.
What is the importance of CVV?
Using CVV during online credit card transactions is a compulsory step to ensure maximum security against frauds. As a result, individuals are mandated by the issuing authorities and e-commerce websites to use this security code during every transaction.
Thus, knowing how the CVV in integrated into the transaction process will benefit a user. Besides, people can carry on their online transactions relatively easy after knowing how CVV works.
Therefore, people benefit from the use of CVV against various types of credit card frauds in the following ways –
- Single-use during online transactions – Effective laws against online frauds have stipulated that e-commerce retailers cannot preserve CVV that credit card users enter. As a result, individuals carrying out transactions have to provide their credit card CVV during every transaction. Owing to the same, CVV has emerged as an efficient security measure against intrusions of hackers into data centers.
- Transactions when card-not-present – The use of CVV or CSC during online transactions indicates that the credit card is present with the individual. Therefore, even if hackers are equipped with sensitive financial details of a credit card user, they cannot complete the transaction. As a result, a scammer cannot carry out transactions at their own behest without the knowledge of a credit card CVV.
Additionally, individuals should only use credit cards that leading financial institutions issue. The reason behind this suggestion is that these issuers implement the best-in-class security cover against online frauds. For example, the Bajaj Finserv RBL Bank SuperCard provides exclusive security features such as zero-fraud liability cover and in-hand security to secure their online transactions.
Therefore, the knowledge of what is CVV helps an individual conduct online transactions without any apprehension. They should also know about different modes of credit card frauds to protect their credit cards from being hacked.