Card Verification Data (CVD), often referred to as the card verification value (CVV) or card verification code (CVC), is the three- or four-digit security code located on the back (and sometimes front) of your credit or debit card, used to verify that the person using the card during a transaction actually possesses it. This is particularly important for card-not-present transactions, such as online purchases or phone orders.
Understanding the Purpose of CVD
The primary purpose of CVD is to reduce fraud by confirming the physical possession of the card at the time of transaction. Merchants are generally not allowed to store the CVD after a transaction is complete, making it more difficult for fraudsters to use stolen card data for future fraudulent purchases.
Types of CVD
While the general concept remains the same, different card networks use different names and placements for their CVD codes:
- CVV (Card Verification Value): Used by Visa cards, typically found on the back of the card near the signature strip. It consists of three digits.
- CVC (Card Validation Code): Used by Mastercard, also typically located on the back of the card and consists of three digits.
- CID (Card Identification Number) or Four-Digit Security Code: Used by American Express, found on the front of the card, typically above the embossed card number. This code consists of four digits.
- Discover: Uses a three-digit code on the back of the card, similar to Visa and Mastercard. The specific terminology might vary, but it functions as a CVD.
How CVD Protects You
By requiring the CVD during a transaction, merchants can verify that the customer has physical access to the card. This offers an extra layer of security, because even if someone has your card number and expiration date, they usually would not have the CVD unless they have the physical card.
Important Security Tips
- Never share your CVD with anyone over the phone, via email, or through unencrypted channels. Legitimate businesses will never ask for your CVD unless you are actively making a purchase with them.
- Be cautious of suspicious websites or emails that request your CVD.
- If your card is lost or stolen, immediately report it to your bank or card issuer.
- Regularly monitor your account statements for unauthorized transactions.
In conclusion, CVD is a crucial security feature that helps protect you from fraud by verifying your physical possession of your credit or debit card during card-not-present transactions. Understanding its purpose and following safety guidelines will help keep your financial information secure.
