What Is a Credit Card Security Code?

A credit card CVV number (Card Verification Value) or CVC (Card Verification Code) is a three- or four-digit number that appears on your credit card and is sometimes referred to as a security code.

The issuer prints the number on the back of the card at random in a way that doesn’t follow any specific pattern. You’ll usually find it to the right of the signing strip, though some networks place it on the front.

The purpose of CVVs is to reduce criminal card fraud. Financial conduct rules mean that merchants are not allowed to store security code numbers in their databases.

Hence, while hackers are able to find card numbers and expiration dates online, obtaining CVVs is much more difficult. 

When shopping, online merchants (or phone banking services) will often ask for your CVV number to confirm that you have the physical card in your hand. To do this, you’ll need to locate it on the card and enter it into the relevant field.

The Difference Between a CVV and a PIN

PIN is an acronym for “personal identification number” introduced around the turn of the century. Banks and card processing companies implemented them as a secure replacement for traditional signatures. 

Most PINs are four digits long, though some issuers require five or even six digits. They are not the same as CVV numbers. Typically, you only use a PIN number when interacting with a merchant’s physical point of sale (POS) or accessing your online banking, while CVV numbers are used in all online transactions. 

Interestingly, your card has two CVV numbers – one written on the back, and one encoded onto its magnetic strip. The one on the magnetic strip was used in the past by physical checkouts to prevent card fraud. 

How to Find Your CVV Code

Finding your CVV is easy. However, the exact placement depends on the card network. 

For American Express, you’ll find a four-digit CVV code on the front of the card, usually on the right-hand side, above the card number. 

For Visa and Mastercard, you’ll find the CVV on the right-hand side of the signature field at the back.

On Discover cards, the CVV is in a similar position. However, it sits to the right of the signature field in a separate box of its own, often with the label “security code” written underneath it. 

How To Keep Your Card Verification Code Secure

Issuers introduced CVV codes to make card transactions more secure. However, just like PINs, they require card owners to keep their CVVs to themselves. 

Here are some tips to help you prevent fraud:

• Sign up for card usage notifications from your provider so that you get an alert every time a transaction occurs.
• Keep your CVV code hidden in public. Don’t turn your card upside down when you go to pay for items.
• Make sure that online shopping sites are secure and encrypted by verifying that there’s a padlock symbol in the top left of your browser’s URL bar.
• Never enter any credit card information over unsecured or public WiFi networks.
• Ensure that the sites you visit use the HTTPS prefix, not HTTP, as the latter is less secure.
• Tell your card issuer immediately if you detect any suspicious activity on your account.
• Don’t provide the card information to anyone who calls you over the phone.

What Is a Dynamic CVV Code?

CVV codes are essential for Card Not Present (CNP) transactions. However, skilled criminals may still obtain them, even if merchants are forbidden from storing them. 

Because of this, dynamic CVV codes have been gaining popularity in recent years. The idea here is to install a small battery-powered screen on the back of the card that periodically updates the CVV code according to set time intervals.

For CNP transactions, all the card user has to do is flip the card over and enter the CVV displayed at that moment. The bank will then confirm the authenticity of the transaction before approving it.