What Is the Security Code on a Credit Card?
Unlock the purpose of your credit card's security code. Learn how this small number adds a crucial layer of protection to your online transactions.
Credit card security protects consumers and merchants from fraudulent activities. The security code on a credit card helps verify legitimate purchases.
Understanding the Security Code
A security code on a credit card is a unique three or four-digit number. This code goes by several names, depending on the card issuer, including Card Verification Value (CVV), Card Verification Code (CVC), Card Identification Number (CID), or Card Security Code (CSC). While the acronyms differ, they all refer to a number printed on the card that is distinct from the primary credit card number and the Personal Identification Number (PIN). This code serves as an additional layer of verification, confirming that the person using the card has physical possession of it.
Locating the Security Code
The placement of the security code varies depending on the type of credit card. For Visa, MasterCard, and Discover cards, the security code is a three-digit number located on the back of the card. It is often found in or near the signature strip, sometimes immediately following the last four digits of the credit card number. American Express cards, however, feature a four-digit security code. This code is positioned on the front of the card, appearing above the main credit card number.
Purpose of the Security Code
The purpose of the security code is to combat fraud in “card-not-present” transactions. These transactions occur when the physical card is not presented to the merchant, such as during online purchases, telephone orders, or mail orders. By requiring the security code, merchants can verify that the individual making the purchase actually possesses the card, rather than just having access to the card number and expiration date. This added verification reduces the risk of unauthorized use, as the code is not stored by merchants after a transaction is completed.
Security Code Handling
Cardholders should handle their security code with care. Do not share the code unnecessarily, beyond legitimate transaction requirements. Consumers should also avoid writing the code down or storing it on unsecured devices, which could expose it to unauthorized individuals. Legitimate requests for the security code occur only during the checkout process for card-not-present transactions. Being wary of unusual requests for the code helps protect against potential phishing attempts or fraudulent schemes.