What Is a Card Verification Code on a Credit Card?

A Card Verification Code (CVC) is a security measure for credit and debit card transactions, particularly those conducted without the physical card present. It helps protect personal financial information during online, phone, or mail order purchases. This code adds a layer of protection beyond the primary card number and expiration date. Its use has become a standard practice in the payment industry to mitigate risks associated with remote transactions.

Defining the Card Verification Code

A Card Verification Code (CVC) is a security feature for “card-not-present” transactions, such as online shopping or telephone orders. The primary purpose of this code is to verify that the individual making the transaction physically possesses the card, which helps reduce credit card fraud.

The code is known by several different names, depending on the card issuer. For instance, it is often referred to as a Card Verification Value (CVV) by Visa, a Card Validation Code (CVC2) by Mastercard, and a Card Identification Number (CID) by American Express and Discover. Despite the varied terminology, these all refer to the same type of security feature: a series of numbers printed on the card.

Finding Your Card Verification Code

Locating the Card Verification Code on your credit or debit card is straightforward, though its placement and number of digits vary by card network. For Visa, Mastercard, and Discover cards, the code is a three-digit number found on the back, usually in or near the signature strip. It often appears after the last four digits of the main card number.

American Express cards feature a four-digit Card Identification Number (CID) on the front, usually above or to the right of the main account number. The Card Verification Code is always printed flat on the card.

Security Role of the Code

The Card Verification Code prevents fraud by adding an extra layer of authentication to transactions where the card is not present. When this code is requested during an online or phone purchase, it helps confirm that the person providing the card details genuinely has the card in their possession. This makes it more difficult for unauthorized individuals to use stolen card numbers for fraudulent purchases.

Merchants are prohibited from storing the Card Verification Code after a transaction is authorized. This regulation, often part of Payment Card Industry Data Security Standards (PCI DSS), means that even if a merchant’s database is compromised, the Card Verification Codes are not available to fraudsters. This non-storage policy limits widespread fraud in the event of a data breach, protecting cardholders from misuse of their financial information.