In order to protect payday loans against credit card fraud, a CVV number, or Card Verification Value is printed on the back of the card. It is a three or four digit security code printed on credit cards, intended to guard against identity theft in transactions where the actual card is not present.
There is another, less known code also present on the card called the “CVV1” code. This is encoded on the magnetic strip of the credit card hidden from view. CVV1 is used for security on transactions when the cardholder is present in person.
For now, we will focus on the CVV2, which is the visible security code present on the front or back of your credit card.
The idea of CVV2 number was came when the credit card transactions via phone or Internet, known as “card not present” transactions, increased in popularity.
Most of the credit cards have the CVV2 number on the backside, adjacent to the box occupied by your signature.
CVC2 And CID Codes
CVV2 code is also referred as “CVC2” and “CID” in case of Discover, Mastercard, and Visa type credit card. Each of these cards have a three-digit code located on the back of the credit card.
CID Codes In American Express credit cards
In case of American Express credit cards, the code is printed on the front of the credit card, to the right of the embossed credit card number.
A four digit number code, referred to as a CID, or card identification number is used in case of American Express cards.
Benefit Of The CVV2 Number
The CVV2 number offers its maximum benefit in situations where the card is not present. It prevents criminals from using your credit card in online or via phone transactions if they don’t actually possess your credit card.
Usually most of the criminals have nearly all of your critical information, but if they don’t physically have your credit card, they will not be able to do any ‘card not present’ transaction.
This is the reason that it’s common for phishing scams to present all of your credit card information and ask you simply for your CVV2 number so that they have access to the only missing information, which stops them from doing any transaction.
So, it is extremely important not to share your CVV2 number with anyone unless you know that they are a trusted merchant!
Many companies store your credit card information, but do not record your CVV2 number, so that even if your credit card details are stolen, your security is less comprised.
However, criminals can still use your credit card in face-to-face transactions, or via gas stations and other places where a CVV2 is not required.
It has become extremely important to have CVV2 numbers for security. Some people even remove them from their credit cards as an added security measure.
Although it is important to guard the CVV2, but removing or scratching the number out could cause you trouble if you forget what that number is. But it is important to protect this number from fraudsters in order to guard against identity theft.