The Internet has made credit card fraud much easier and this has sparked the invention of all sorts of different fraud prevention measures. One of these techniques is known as CVV.

What is CVV

CVV is also known as CVV2, CID, CVC2 and Card Verification Number. This is a number which is printed on the front or back of your card. Typically in the case of Master card and Visa this will be printed along the signature strip. American Express cards have this number printed on the front.

CVV doesn't offer a lot of protection from fraud but it's still useful. There are plenty of reasons why you should use this system to protect you and your customers.

The idea is that this number is not encoded on the magnetic strip (or chip) of your card. This means that the only way you can find it out is by looking at the card itself.

Problems with CVV

There are plenty of problems with CVV which make it worthless. Firstly you should never write down or store the CVV number. Every merchant is not permitted to enter or record the CVV details.

CVV is only permitted for use in call centers and on web sites which have automatic authorization. If you are caught storing CVV details then there are very hefty fines charged.

Another problem with CVV is that it' a number printed on the back of the card. This number is not embossed and will wear off fairly quickly. This can make it very difficult for customers who want to purchase from you. Almost half of the top retailers don't use CVV details.

Why use CVV?

There are however plenty of reasons why you should use CVV on your web site. Firstly this method is completely free. Your merchant account provider will not charge you any extra to use this security system.

The best reason for requiring CVV details is that it protects you from skimmed cards. Card skimmers will need to capture additional information as well as just the data on the magnetic stripe. CVV will stop fraudulent transactions because of skimmed cards.