The CVV number, also known as the CVC number, is the 3 digit code on the back of your credit card, just after your signature. It stands for Card Validation Code.This code helps detect if your data may have been stolen or tampered with during a transaction. When you use a credit card to buy something in-store, for instance by swiping it through a point-of-sale terminal or inserting it into an automated teller machine (ATM), you are not usually asked to enter your cvv code unless there is suspicion of fraudulence.
Why is CVV needed? (In Detail)
- Some credit card companies require this 3 digit code for security purposes. The CVV code helps confirm that the information you provided on your registration and when your credit card was activated is correct. This is especially important if you use your card a lot, as it helps in protecting your credit rating from wrong purchases and payment of bills.
- The CVV code should be printed on the back of all credit cards with the standard black font or a dark color, to help it stand out. The CVV code can be either printed within one of the 4 corners or above the signature box. It is located in the middle of the backside of a card. Check your own credit card to see if it has CVV printed on its back.
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History of CVV in credit cards
Before 2009, the CVV was printed on the front of the credit card. When someone stole your card, they usually copied it from there. This was a serious problem because if an unauthorized person got hold of your credit card number, he could use it to withdraw money from your bank account. For example, if you used an automated teller machine (ATM). And you had forgotten your PIN or set up daily withdrawal limit, someone may withdraw a large amounts at once.
In 2009, the credit card companies introduced the Cvv code on the back of credit cards to protect people from theft. The reason they made this change is because a thief would not be able to copy your credit card number from the front, but could still acquire your CVV code by skimming or stealing it.
CVV used to be a 4 digit code. It means that you had to have at least one digit left over (e.g: 009). However, in 2011, MasterCard switched to a zeros-only numbering system as part of its strategy as they are using 128-bit encryption. With this new system, there is no room for ambiguity as every number has exactly 12 significant digits.
This is the most important thing to remember about the CVV code; it is printed on the back of your credit card for security reasons. And you are asked to enter it when making a purchase or if you enter an ATM. However, if you need to cancel your credit card, then you can do so by following these instructions. You will also see this number mentioned during a dispute over a charge or if fraudulent activity on your account.
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