What Is the Code on the Back of a Credit Card Called?

Credit cards include various security features designed to protect financial information. Beyond the account number and expiration date, a distinct code is present to enhance transaction safety. This specific set of digits plays a role in verifying card authenticity during certain types of purchases.

The Code’s Name and Location

The code on the back of a credit card is known by several names, which vary depending on the card network. Common terms include Card Verification Value (CVV) for Visa, Card Verification Code (CVC) for Mastercard, and Card Security Code (CSC) or Card Identification Number (CID) for Discover and American Express. This numeric code is not embossed like the primary account number but is printed flat on the card.

For most Visa, Mastercard, and Discover cards, this code is a three-digit number typically found on the back of the card, often within or near the signature strip. American Express cards, however, usually feature a four-digit code located on the front of the card, above the account number. It is consistently separate from the main card number.

Its Primary Purpose

The primary purpose of this security code is to provide an additional layer of protection against fraud, particularly in “card-not-present” (CNP) transactions. These include purchases made online, over the phone, or via mail order, where the physical card is not swiped or inserted. The code helps verify that the person making the purchase physically possesses the card, rather than just having access to the card number and expiration date.

Unlike the card number and expiration date, this security code is not typically embossed on the card, nor is it stored by merchants after a transaction is completed. It also does not appear on printed receipts. This non-storage policy makes it harder for unauthorized individuals to obtain the code, even if other card details are compromised.

How it Functions in Transactions

When conducting an online purchase or placing an order over the phone, consumers are prompted to enter this security code as a final verification step. This entry confirms that the individual has the physical card in their possession at the time of the transaction. The payment system then uses this code to authenticate the transaction with the card issuer.

Merchants and payment processors are prohibited by industry standards, such as the Payment Card Industry Data Security Standard (PCI DSS), from storing this code after the transaction’s authorization process. This non-storage requirement prevents the code from being compromised in the event of a data breach at a merchant’s system.