What is CVV in a credit card?

The CVV along with your credit card number is one of the most important pieces of information to have and know. Knowing both of these numbers allows you to make purchases securely and safely. Many people know about their CVV number, but what exactly is the CVV number and how does it protect your information? These are important questions to be able to answer if you want a whole understanding of how credit cards and financial instruments in general work. 

CVV stands for card verification value, and it is the catch-all term for security codes from each credit card network. You can find the CVV code on the back right of your credit card. There are usually 3 digits on the back, unless you have an American Express card in which case there will be 4 digits on the back. This is the security code you have to enter when you are making online purchases to ensure that the card is in the cardholders’ hands and not being used fraudulently.

How does the CVV protect my information?

The CVV is essentially another piece of information that stops people from using your credit card without your consent. CVV offers two-factor authentication for your credit card to ensure that the information is in the right hands.  The CVV verifies that the card is in your possession which helps to prevent fraud. Although this is not a fail-safe method, as if this information is also given to scammers then they could make fraudulent purchases very easily. 

CVV makes sure that there is less of a risk to cardholders as scammers now need more information to make purchases using your credit card. It is not enough that they have your account number, they also need the CVV and the expiration date because most online providers require all 3 pieces of information. The CVV does not grant you immunity to fraudulent behavior but it is one of the best ways to prevent people from stealing your information. 

How can I protect my information?

It is important to understand that credit card information is extremely sensitive and you should never share it with anyone, especially with people on the internet.  Install anti-virus software on your computer to shield your credit card information from attempts to steal it. Ignore all requests for sensitive personal or credit card information because no reputable agency will ever ask for that information. Finally, shop on only secure websites that you trust because they have security measures in place to keep all of your information safe and secure. 

Having a CVV does not make you safe from all data breaches, or phishing hacks so make sure that you are never giving your information to other people no matter who they are. The fewer people who know about your sensitive information the better.  

Takeaways

The Card Verification Value is important in keeping your information out of the hands of scammers. It provides a two-factor authentication method that tries to ensure that the credit card is in the right hands. Make sure you keep this information safe and do not share it in order to decrease the likelihood of theft. If your information is stolen contact your card issuer and they usually have the necessary tools to cancel the card and make sure you are not responsible for fraudulent purchases. Always make sure to keep your CVV safe and private.