What Is The CVV Number and How to Find It

The acronym CVV stands for Card Verification Value, though you might also see it called Card Verification Code (CVC) or Card Identification (CID). This security feature plays a big role in protecting both businesses and customers from fraudulent transactions.

The Federal Trade Commission reported that consumers lost more than $12.5 billion to fraud in 2024, a 25% increase over the previous year.

If you’re a business owner accepting card payments, you need to master how the CVV protects transactions to reduce fraud and chargebacks. This article covers all the information you need.

TL;DR

• CVV stands for Card Verification Value, and it’s a security feature on credit and debit cards.
• CVV codes help prevent card-not-present fraud, which accounts for 73% of all card payment fraud in the US.
• Visa uses CVV2 while Mastercard uses CVC2. They are both 3-digit long, and they appear on the back of the customer’s credit or debit card.
• American Express uses CID, a 4-digit code that appears in front of the customer’s card.
• Businesses should request CVV verification for all card-not-present transactions to reduce fraud risk.
• CVV checks can significantly reduce chargebacks and improve payment security
• Businesses cannot store CVV codes after processing; it’s against payment card industry rules.

What Is the CVV Code?

CVV is a security code that proves the person making a purchase actually has the physical card in their possession and that their account is legitimate. This is especially important for online and phone transactions where fraudulent activities are common.

The CVV code is generated using an algorithm that combines the card number, expiration date, and other card data. This makes it nearly impossible to guess, even if someone has other card information.

Payment card fraud caused an estimated $13.75 billion in losses for consumers, merchants, and credit card issuers in 2024, according to industry research. This makes CVV verification an important tool for businesses looking to protect themselves and their customers.

Types of CVV Codes

Here are the main types of card verification means you’ll encounter:

CVV1

CVV1 is embedded in the magnetic stripe of the card. This code is used for in-person transactions when customers swipe their cards on your point of sale (POS).

CVV2

CVV2 is the visible 3-digit security code printed on the back of customers’ credit and debit cards. This is what customers enter for online purchases and phone orders. CVV2 is used to verify card possession for card-not-present transactions. Visa uses the CVV2, and it’s located in the signature panel on the back of the card.

CVC2

CVC2 (Card Verification Code 2) is Mastercard’s version of the security code. It works exactly like CVV2; it’s a 3-digit code used to verify card-not-present transactions.

CID

CID (Card Identification) is American Express’s version of the security code. Unlike other cards, American Express CID codes are four digits long and appear on the front of the card, above the card number.

Why CVV Verification Is Important for Businesses

What does CVV mean for your business? CVV codes can impact your customers’ security and your business’s profitability in the following way:

Fraud Prevention

The primary reason businesses should always request CVV verification is fraud prevention. Card-not-present fraud makes up 73% of all US card payment fraud, making CVV checks important for online and phone transactions.

When fraudsters steal card numbers, they often don’t have access to the CVV code because merchants aren’t allowed to store this information. This makes CVV verification an effective barrier against unauthorized transactions.

Chargeback Reduction

CVV verification can prevent chargebacks. When you properly verify the CVV code, you show that you took reasonable steps to verify the cardholder’s identity. This can help you win chargeback disputes and avoid costly fees.

Customer Confidence

When customers see that you request CVV verification, it shows that you take security seriously. This can increase customer confidence in your business and reduce abandoned shopping carts due to security concerns.

How to Find CVV Numbers on Different Card Types

How to find CVV depends on the type of card your customer is using. The table below shows where to locate CVV codes on different card types:

Card network	CVV Length	Location
Visa	3 digits	Back of card
Mastercard	3 digits	Back of card
Discover	3 digits	Back of card
American Express	4 digits	Front of card

Note: CVV codes on debit cards appear in the same locations as their credit card counterparts. Most debit cards follow the three-digit format on the back, except for American Express debit cards.

How to Find Your CVV Number Without the Card

Sometimes customers ask how to find their CVV number without access to their cards. 

The short answer is that legitimate customers cannot and should not be able to find their CVV without the physical card. This is by design. The CVV is meant to prove card possession.

However, there are some legitimate situations where customers might need alternatives. Here’s what they can do:

Digital Wallets

When customers use digital wallets like Apple Pay, Google Pay, or Samsung Pay, these services use tokenization and don’t require the traditional CVV. Instead, they generate a unique security code for each transaction.

Banking Apps

Some banks now offer dynamic CVV codes (dCVV) through their mobile apps. These change every few minutes and provide security for online transactions. This is a newer technology that some forward-thinking banks are implementing, but the adoption is not universal.

Customer Service Options

If a customer truly can’t access their physical card, they should contact their bank directly. Banks can verify identity through other means and may be able to provide alternative authentication methods for legitimate transactions.

As a business owner, you should never accept CVV codes from sources other than the physical card or legitimate digital wallet services. If a customer claims they can’t provide the CVV, consider this a red flag and use additional verification methods.

When Businesses Should Ask for CVV

Here are situations where businesses should always ask for CVV codes:

All Card-Not-Present Transactions

Any time a customer isn’t physically present with their card, you should request CVV verification. This includes online purchases, phone orders, mail orders, or recurring billing (for the initial setup).

High-Risk Transactions

Certain transactions carry a higher fraud risk and should always include CVV verification. These include transactions involving large amounts, international transactions, first-time customers, and orders shipping to different addresses than the billing address.

Customer-Initiated Account Changes

When customers make significant account changes, use CVV verification to ensure security. For example, if they are updating payment methods, changing shipping addresses, or changing recurring payment amounts.

Refund Processing

Some businesses verify CVV codes even for refunds to ensure the person requesting the refund is the actual cardholder.

How Businesses Should Handle CVV Security

Companies need to follow specific security practices when implementing CVV security in their payment systems.

Never Store CVV Codes

This is the most important rule: never store CVV codes after processing a transaction. Payment Card Industry (PCI) rules strictly prohibit storing CVV data, even in encrypted form. This applies to transaction logs, customer databases, backup files, or any other storage medium.

Implement Real-Time Verification

CVV verification should happen in real-time during the transaction process. Don’t collect CVV codes and verify them later, as this creates security risks and violates payment card standards.

Use Secure Transmission

When collecting CVV codes, ensure they’re transmitted securely. Use SSL/TLS encryption for online forms and never require your customers to send CVV codes via email or unencrypted channels.

Common CVV-Related Challenges Businesses Face

Below are common challenges business owners face when implementing CVV verification:

Customer Confusion

Some customers don’t understand what CVV means or where to find it. Address this by providing clear instructions on payment pages. You can use visual guides showing CVV locations on your website.

International Variations

Different countries may have variations in CVV implementation. Stay informed about international payment standards if you accept global customers.

Legacy System Integration

Older payment systems might not fully support modern CVV verification methods. Consider upgrading to more secure payment processing solutions.

Mobile Optimization

Ensure your CVV collection process works smoothly on mobile devices, as mobile commerce continues to grow.

Final Thoughts

The way to successfully implement CVV verification in your payment system is to balance security with customer experience. While CVV verification reduces fraud and chargebacks, it must be implemented thoughtfully to avoid creating friction in the payment process.

If you’re ready to implement payment security solutions, contact PayCompass today. Our team can help you reduce fraud, prevent chargebacks, and protect your revenue while ensuring your customers enjoy secure, seamless payment experiences.