What Does Card Security Value Mean?

A card security value serves as a fraud prevention measure for payment card transactions. This unique code helps verify that the individual making a purchase possesses the physical card. Its implementation adds a layer of protection for both consumers and merchants against unauthorized use of card information. The presence of this security feature is especially important in transactions where the card is not physically present, such as online purchases.

Understanding the Card Security Value

The card security value is a distinct three or four-digit numeric code printed on credit and debit cards. It authenticates card transactions. This code is known by various names depending on the card network. For instance, Visa refers to it as Card Verification Value (CVV), Mastercard uses Card Verification Code (CVC), and Discover often calls it Card Identification Number (CID).

American Express also uses CID, though it is sometimes referred to as a Card Security Code (CSC). This code is generated by the card issuer using an algorithm and is designed to be unique to each card. It is printed flat on the card, distinguishing it from the embossed card number and expiration date.

Locating the Card Security Value

The placement of the card security value varies depending on the card network. For Visa, Mastercard, and Discover cards, the three-digit code is typically found on the back of the card. It is usually located within or adjacent to the signature strip.

American Express cards feature a four-digit card security value on the front of the card. It is usually printed above the primary account number. Unlike other card details, the security value is never embossed, but printed directly onto the card surface. It is important not to confuse this security value with other numbers that may appear on the card.

The Role of the Card Security Value in Transactions

The card security value enhances security for transactions where the physical card is not presented, such as online, phone, or mail-order purchases. By requiring this code, merchants can verify that the person making the purchase physically possesses the card. This process reduces the risk of fraud, as a stolen card number alone would not be sufficient to complete a transaction without the corresponding security value.

Payment Card Industry Data Security Standard (PCI DSS) regulations prohibit merchants from storing the card security value after a transaction has been authorized. This restriction means that even if a merchant’s database were compromised, the security codes would not be available to fraudsters, making it significantly harder to use stolen card numbers for unauthorized purchases. While some card details like the card number and expiration date can be stored for recurring payments, the card security value cannot be retained. This measure helps protect cardholder data during digital transactions.