What is CVV Number, Full Form, Codeon Debit and Credit Card?

These days everything is becoming digitized. The shift to a cashless economy has been welcomed by many people. Many people lately prefer making payments and transactions through their cards(debit /credit). The digital revolution has given enormous rise to the usage of plastic cards. It has become a very convenient way of making payments and can also be used to withdraw cash from ATMs.More and more people are shifting to purchasing their daily needs through apps and websites. Everyone indulges in online shopping these days. A CVV code is needed to make online payments. This CVV code is printed on the credit/debit card. Since cards (especially credit cards) are being used so often, it becomes necessary for the people using them to understand what this CVV means and how to protect it.

The complete form of CVV is Card Verification Value. It is sometimes called Card Verification Code (CVC) or Card Security Code (CSC). CVV (Card Verification Value) is a significant number on the credit card. This number is required in all online transactions using a credit card . The owner of the credit card should keep its CVV safe.The CVV, or the Card Verification Value number, is generated by the bank or financial institution from where the credit card is sourced. The CVV number which is generated has the following details on the credit card:

1. Credit card number
2. The credit card’s expiration date, after which it automatically becomes invalid
3. Service code
4. Issuer’s unique code

Also Read: Difference Between an ATM Card, Credit Card And Debit Card

There are some other things that the credit card holder should know. The CVV on the credit card is auto generated by the bank issuing the credit card. This number is not derived from the credit card number, the credit card pin or the date of expiry of the card. Since it is printed on the credit card, it cannot be changed. The CVV number is unique to every credit card and cannot be the same on two different credit cards.While transacting online, two-factor authentication is required. In this, the CVV of the credit card holder is asked twice during the entire process of the online transaction. This ensures that the credit card holder only makes the transaction and not some fraudster. The CVV has to be entered twice since a fraudster may enter the CVV number by fluke but will not remember it the second time. On the other hand, the actual cardholders will not make such a mistake since the credit card is present with them.

A CVV is typically a three-digit numerical code. In VISA and Mastercard credit cards, the CVV number can be found on the back of the card. It can be found on the right side of the signature panel and below the account number. On the other hand, on a credit card from American Express, the CVV number is imprinted on the front of the card and is a four-digit number. This number can be viewed just above the account number.

Every CVV has two parts, these are:

1. The first part is covered with a black magnetic strip which is striped. This strip contains all the unique data related to the credit card and is crucial. Whenever the credit card is swiped through the POS (Point of Sale) machine, the data (information) related to the credit card is recovered.
2. The second part is the digits that must be entered in an online transaction . The CVV is paramount since the transaction is complete without entering the CVV number.

PIN (Personal Identification Number) differs from the CVV number on the credit card. Here are a few of the significant differences.

1. The PIN is usually sent to the person in a sealed envelope and delivered directly to the person whose name the credit card is. On the other hand, the CVV is printed and displayed on the credit card.
2. The PIN is supposed to be changed by the credit card holder. This can be done by visiting the bank's nearest ATM (Automated Teller Machine). This PIN should never be divulged to anyone. On the other hand, the CVV on the credit card can easily be viewed by anyone who has possession of the card.
3. The PIN is used in all transactions where the POS (Point of Sale) machine is used. It is also used for withdrawing cash from the bank's ATM (Automated Teller Machine). On the other hand, CVV is used while making online transactions. This can be used while purchasing a product or paying online through a credit card.

Although it is advised to keep the details of the credit card private from anyone, transactions on web portals are only possible by entering the CVV of the credit card. For every online transaction, the credit card's details must be entered. These are the credit card's name, the credit card's expiry date, and the CVV number.Some online sites ask for permission to save the credit card details on their site. One may grant them permission provided that the online site is a reliable one. Furthermore, if an individual is a regular purchaser from this site, allowing them to save the details makes sense. This is so because the online site will automatically fetch the details when the next online transaction is made. This will save time for future transactions, as the details need not be submitted again if the credit card is saved.There is no need to panic if CVV is entered, as only CVV does not complete the online transaction. An OTP (One-Time Password) is sent to the registered mobile number by the bank. The online payment is completed only after submitting the OTP. If this one-time password is not entered, then the payment is declined.The merchants selling on an e-commerce platform are not supposed to save the data of the CVV number according to the PCI DSS (Payment Card Industry Data Security Standards). If they save it, then it will be considered a data breach. This is why when a person clicks on the payment, only the last four digits of the saved credit card appear on this page. The credit card holder is supposed to enter the CVV number before placing the order. Also Read: What are The Interest Rates of a Credit Card?

Whenever a person uses a credit card online, the CVV must be entered to complete the transactions.

1. Although it can be used safely on reliable sites, one must be careful while using the CVV on a credit card. It should only be used on sites that are heard of or are reliable.
2. Do not share photos of CVV of the credit card or the credit card on any online platform or social media. Unauthorized people may get their hands on it, and the credit card and CVV may be compromised.
3. Do not share the CVV of the credit card with anyone, not even friends or relatives.
4. Ensure that one’s laptop or desktop is well protected with suitable anti-virus software. The anti-virus software will detect viruses and online tools that fraudsters and hackers can use to compromise credit cards. It also scans the keyboard-logging software.
5. One should not respond to suspicious calls, SMS or emails from an individual asking for credit card details. Such people may be involved in phishing activities. They give such irresistible offers that it becomes challenging for an individual to decline them. These are just ways of trapping an individual. These offers may be in the form of discounts, winning a lottery, or something big.
6. This laptop or mobile may have information related to financial transactions of the credit card and the card details with the CVV. Always have a password for the WIFI network. Always lock laptops and mobile so unknown people cannot access information.
7. Always remember that an actual bank representative will only for some credit card details, like the name or the last 4 digits of the credit card. They will never ask for the CVV of the credit card. If any person posing to be a bank representative asks for the CVV number of the credit card, inform the bank immediately.
8. If an email or SMS is received from a bank, the bank’s name will be displayed. They do not send emails or SMS from an unknown or private number.
9. Never respond to emails or SMS with unknown or uncommon links or images and are sent by sources unfamiliar to the person.
10. Learn to identify trusted websites. Remember that trusted and reliable sites always have ‘https’ in the address bar. If this doesn’t appear on the address bar, then do not share the credit card details along with the CVV of the credit card.
11. If a person is using a public WIFI quite often, then make sure to use VPN (Virtual Private Network) software to protect personal data, which includes the CVV of the credit card.
12. The most important thing is to keep checking the transactions made on the credit card. If a credit card holder does not make a transaction, then the authorized bank or the financial institution should be informed immediately.

The CVV on the credit card is to provide additional security to the credit card. It safeguards the credit card from being misused and any suspicious activity. Activities on the credit card have an impact on an individual's credit score , so use it wisely. The Government of India is making many efforts to promote digital India. We, as citizens, need to adapt to the changes. It is important first to educate ourselves and understand the technology properly.Although many people have started using credit and debit cards, amongst these users, there are still many who still need to learn about CVV. All credit card holders need to know the importance of the CVV number on the credit card.