What Is a Security Code and Where Do You Find It?
Understand payment security codes: what they are, their purpose in protecting transactions, where to locate them, and how they function.
Security codes are a fundamental component in safeguarding financial transactions. These unique numerical sequences enhance the safety of purchases, particularly those made without the physical presence of a card, such as online or over the phone. They serve as a protective layer, working to confirm that the individual initiating a transaction is the legitimate cardholder. This added verification step helps to mitigate the risks associated with unauthorized use of payment card information.
Understanding Security Codes
A security code is a distinct set of numbers printed on a payment card. Its primary function is to act as an anti-fraud measure for “card-not-present” transactions. This code helps verify that the person making the purchase has physical possession of the card, reducing the incidence of credit card fraud.
Different card networks use specific names for these security codes. Visa cards feature a Card Verification Value (CVV), while Mastercard uses a Card Verification Code (CVC). Discover cards may refer to it as Card Identification Number (CID) or Card Verification Data (CVD). American Express cards utilize a Card Identification Number (CID) or Card Security Code (CSC). Each of these terms denotes a unique three or four-digit number designed to protect against unauthorized transactions.
Locating Security Codes
Finding the security code on a physical payment card depends on the card issuer. For Visa, Mastercard, and Discover cards, the security code is typically a three-digit number. This code is usually found on the back of the card, often within or near the signature strip.
American Express cards, in contrast, typically feature a four-digit security code. This code, known as the Card Identification Number (CID), is usually located on the front of the card. It is often printed above the account number, usually to the right. Unlike the embossed card number, the security code on all card types is printed flat, making it more difficult to skim or replicate.
How Security Codes Function
Security codes enhance transaction security by confirming the cardholder’s possession of the physical card. When a security code is entered during an online or phone transaction, it is transmitted to the card issuer along with other transaction details. The card issuer then verifies this code against their records to confirm the card’s authenticity. This verification process helps ensure that the individual making the purchase is the legitimate cardholder.
Security codes are not stored on the card’s magnetic stripe or chip. Payment industry regulations, such as the Payment Card Industry Data Security Standards (PCI DSS), prohibit merchants from storing security codes after a transaction is authorized. This prohibition means that even if a merchant’s database is compromised, the security codes are not accessible to fraudsters, making it harder for them to use stolen card numbers for unauthorized purchases.