What is CVV in Credit Card & Why It Is Important

When you shop online or pay over the phone using your credit card, you might be asked to enter a three-digit number called the CVV. But what exactly is this CVV, and why do you need to use it? In this blog, I’ll explain what CVV means, how it works, and why it’s important to keep your credit card safe.

What Is CVV?

CVV stands for Card Verification Value. This is a special security number located on your credit card. For most cards, like Visa and MasterCard, it is a three-digit number found on the back of the card near the signature area. For American Express cards, it is usually a four-digit number printed on the front of the card.

This number is different from your main credit card number or the expiration date. The CVV is used to add extra protection when you buy things online or over the phone, where the seller cannot see your actual card.

Why Was CVV Created?

As more people started shopping online, banks and credit card companies wanted to make payments safer. Occasionally, criminals obtain credit card details and attempt to use them for unauthorized transactions. The CVV was created to help stop this kind of fraud.

Even if someone knows your credit card number, they usually won’t have the CVV because it is not stored by stores or websites after you make a payment. This means that without the CVV, it is much harder for someone to use your card illegally.

How Does CVV Work?

When you shop online or pay over the phone, you enter your credit card number, expiry date, and CVV. The payment system checks if the CVV you entered matches the one on file with your bank.

If the CVV is correct, the likelihood of the transaction getting authorized increases significantly. If the CVV is wrong or missing, the payment might be blocked or reviewed for fraud. This helps make sure the person making the payment has your physical card in their hands, not just the card number.

Are CVV and PIN the Same?

The CVV and PIN are different codes each designed for its own specific function. The CVV is a code you use mostly when shopping online or paying without physically handing over your card.

The PIN, which stands for Personal Identification Number, is a secret number you use when you withdraw money from an ATM or pay at a store by inserting or tapping your card. The PIN helps prove that you are the rightful owner of the card during face-to-face transactions.

So, CVV protects online or phone payments, and PIN protects in-person transactions.

Why Is CVV Important?

CVV is very important because it adds extra security to your credit card. Since merchants don’t save your CVV number, it is harder for hackers to steal it along with your card number.

If someone tries to use your card details online without your permission, they will usually need the CVV to complete the purchase. If they don’t have it, the transaction can be stopped or checked, which helps protect your money.

Keep Your CVV Confidential

Safeguard your CVV by keeping it confidential and never disclosing it to others. This helps prevent fraud and keeps your money safe. Always avoid giving your credit card details and CVV to others and never leave your card unattended. Only enter your card information on websites that you trust to avoid risks.

Also, don’t write down your CVV or card details in diaries or save them on your computer. Make sure your system has updated anti-virus software to protect against threats. Lastly, never share your credit card details over the phone with anyone to stay safe from scams.

Should You Share Your CVV?

You should never share your CVV with anyone you don’t completely trust. Always be careful when typing it online. Make sure the website is secure — look for “https” in the web address or a lock symbol in your browser.

Don’t give out your CVV over phone calls or emails unless you are sure the person or company is genuine. Sharing your CVV carelessly can lead to fraud and financial loss.

Bottom Line

The CVV is a small but very important number on your credit card that helps protect you when shopping online or paying by phone. It makes sure that even if someone steals your credit card number, they can’t easily use it without the CVV.

By understanding what CVV is and why it matters, you can keep your credit card safer and avoid fraud. Always be cautious when entering your CVV, and never share it with untrusted people or websites.