You likely already know what your credit card CVV number is, but you may not know how it works to secure your payments. This unique number is an integral part of your card details and it is used for both online and offline transactions.
Here is a detailed rundown of all the vital information about your CVV number.
Overview of CVV Number
Financial institutions issuing credit cards have a system through which they track the transactions made with the card. This is where a CVV number is useful. Short for Card Verification Value, this is a unique code that’s not printed on any of your account statements.
Moreover, it isn’t decided by decoding your PIN, card number, bank account number, or any other details. Rather, it is a random number unique to every card. This adds a layer of protection, enabling two levels of authentication for transactions.
Depending on the issuer, the credit card CVV number may also be known as:
- Card Identification Number (CID)
- Signature Panel Code (SPC)
- Card Verification Data (CVD)
- Card Validation Code (CVC2)
- Card Security Code (3CSC)
Purpose of the CVV
The primary purpose of CVV is to provide an extra layer of security. It works as an identifier for a card, confirming that the person making the payment actually has the card. Simply put, it helps prove the legitimacy of the cardholder for both offline and online transactions.
You generally have to provide the following details to complete a payment:
- 16-digit card number
- Cardholder name
- Expiration date
- CVV number
However, your details on the front are more vulnerable and can fall into the wrong hands, but CVV is not as easy to get. So, if someone has your other details but not the CVV, the payment will not go through, protecting you and your finances.
How Does CVV Protect You Against Fraud?
In addition to confirming the legitimacy of the card in use, there is another way in which a credit card CVV number protects against fraud. This is due to the fact that payment gateway pages can’t save this number, as per the Payment Card Industry Data Security Standard (PCI DSS) protocols.
As credit cards are widely used for digital transactions, this regulation protects you from unauthorised transactions by declining the payment unless you provide the CVV in real-time.
Components of a CVV
Here are the components of your credit card CVV number and how they help.
- Striped Magnetic strip covers: When used in offline transactions, the magnetic reader machine reads the strip before the CVV number. This confirms that the card details on the front are legit and not copied from others.
- Three-digit number: Apart from the strip, the CVV number consists of three digits, which allow issuers to confirm the payment while making online transactions. So, if someone has all the information on the front of the card, they still can’t make payment without the CVV.
Difference Between a CVV and a PIN
Here are some key points of difference between your credit card CVV number and the PIN.
- CVV number is a 3-digit code in India, while the PIN is a 4-digit code
- You have to set up the PIN for your card, but the bank issues the CVV number
- You cannot change your CVV, but you can change your PIN if you forget it or want to increase the security of your card
- You have to enter your PIN to make online and offline transactions, but you need to enter CVV only for online payments, as it is read automatically in offline payments
- Two cards can have the same PIN, but the CVV number can’t be the same, as it is unique for every card issued
Along with the above details, you must also remember to not share your card details with anyone. By keeping details like the CVV, OTP, and PIN confidential, you can work to protect yourself against scams and fraud. Keep in mind that the credit card CVV number is not a foolproof method to protect against scams and fraudsters.
This is also why financial institutions are continuously developing technology to protect you from security breaches. A leading and secure credit card options is the One Credit Card. You can get this card with no annual or joining fees and earn 5X rewards on your top two spending categories.
It also comes with many other perks, such as easy EMI conversion and no redemption charges. Among these benefits is the powerful One Credit Card App, which gives you access to all credit card information at your fingertips. You can use it to easily track your expenses and dues, make credit card bill payments online, check transaction history, earn reward points, and more. So, apply online to enjoy all these perks and more.
