Business & Finance Credit

What Is a CVV Code on a Credit Card?

    Types

    • There are two types of CVV codes associated with every credit card. The CVV1 code is embedded on the magnetic strip and used for physical transactions. The CVV2 code is a three or four digit code printed on the back of the card, used for transactions for which the purchaser is not present.

    Use

    • The CVV2 number is used as an added security measure by many retailers. When customers are not present for the purchasing transaction, it is a method to verify the customer is in possession of the card.

    Location

    • The CVV2 code is located in the signature block on the back of the credit card. Your card may or may not show the entire credit card number in the signature block. It is the last three or four digit number in the signature block.

    Considerations

    • Credit cards and their accompanying CVV codes have been the target of phishing scams and hackers. Ensure the company you are giving the CVV code to is not maintaining your confidential information.

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