CVV2

A CVV2 code, also known as a Card Verification Value 2, is a three-digit code located on the back of Visa credit, debit, or prepaid cards. Its purpose is to assist in verifying the identity of buyers during card-not-present transactions. The term “CVV2” signifies that it is the second implementation of the CVV (card verification value) technology.

Validating a cardholder’s identity in a card-present scenario, where the buyer and seller interact face-to-face, is relatively straightforward for merchants. Authentication data is accessed and communicated through methods like swiping, inserting the card into an EMV reader, or tapping it against a contactless terminal.

However, what happens when the cardholder is not physically present to perform these actions, such as in an online purchase? This is where the significance of CVV2 codes comes into play.

The terms CVV and CVV2 are largely interchangeable, although there are some distinctions between the two, which we will discuss below.

A CVV2 code is located on the back of credit and debit cards, serving as a three or four-digit number. Its purpose is to ensure that the person making a purchase has the physical card in their possession. The primary objective of these codes is to prevent unauthorized usage of a credit card in card-not-present transactions.

Card-not-present transactions primarily encompass online purchases, but they also include manually entered transactions, such as orders placed over the phone.