Glossary

Cardholder Verification Method (CVM)

A Cardholder Verification Method is a security procedure used during a transaction to ensure that the person attempting to make a payment is the legitimate owner of the payment instrument, such as a credit card. CVMs are critical components of transaction security, particularly in mitigating fraud associated with stolen or duplicated payment cards.

Various types of CVMs are employed depending on the transaction environment and the technology available:

The choice of CVM can depend on the card issuer’s policy, the technological capabilities of the merchant’s payment terminal, the transaction type, and the perceived level of risk. EMV (Europay, MasterCard, and Visa) chip technology, for example, supports multiple CVMs and allows the terminal and the issuer to jointly determine the most appropriate method during a transaction.

Effective use of CVMs is crucial not only for protecting against unauthorized use of payment instruments but also for maintaining consumer confidence in the security of card-based transactions.

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