Card Verification Value (CVV) / Card Verification Code (CVC) / Card Identification Number (CID)

The Card Verification Value (CVV), also referred to as Card Verification Code (CVC) or Card Identification Number (CID), is a security feature used to protect credit and debit card transactions against fraud, particularly in card-not-present (CNP) transactions such as online or phone purchases. This code helps to verify that the actual card is in the possession of the cardholder and that the card account is legitimate.

These codes are an essential part of the authorization process for CNP transactions. When a transaction is initiated, the merchant will request the CVV/CVC/CID from the customer, and this code is then verified by the card issuer. A match confirms that the card details are correct and that the card is in the possession of the rightful owner, allowing the transaction to proceed. Importantly, merchants are prohibited from storing these verification codes after the transaction is authorized to protect sensitive cardholder data and comply with Payment Card Industry Data Security Standard (PCI DSS) requirements.

The use of these verification codes helps merchants make more informed decisions regarding the validity of a transaction, significantly reducing the risk of fraud and chargebacks in CNP environments. This layer of security is critical for maintaining the integrity of electronic payment systems and for ensuring consumer trust in digital transactions.