What are Card Verification Codes?
All major credit card companies and associations have implemented a three- or four-digit security code that is printed on the front or back of each card. This added security measure enables a retailer to verify that the buyer has the actual card in hand during a card-not-present transaction, thus reducing fraudulent
transactions. Check out for information below on the card security codes for
each of the major brands.

Visa
Security code: CVV2 (Card Verification Value 2)
Details: Located on the back of all Visa cards, the CVV2 consists of the last three digits printed on the signature panel.

MasterCard
Security code: CVV2 (Card Verification Value 2)
Details: CVC2 is a three-digit code printed on the signature panel of MasterCard cards.

Discover
Security code: CID (Card Identification Number)
Details: CID is a three-digit code printed on the signature panel of Discover cards.

American Express
Security code: CID (Card Identification Number)
Details: CID is a four-digit code printed above the card number on the front of American Express cards.

How do Card Verification Codes work?
Step 1: The merchant asks the customer for the Verification Code and sends it to the card issuer as part of the authorization request.
Step 2: The card issuer checks the Verification Code to determine its validity, and then sends a result code back to the merchant along with the authorization decision.
Step 3: The merchant evaluates the result code, taking into consideration the authorization decision and any other relevant or questionable data.

What else should merchants find out about Card Verification Codes?
a) Not all payment processors support security codes. You must check to see if it is available on their system.
b) Uncertified card issuers lose chargeback rights for fraudulent Mail Order / Telephone Order (MO / TO) transactions when the Verification Code is included in the authorization message.
c) To protect Verification Codes from being compromised, merchants should never keep or store them once a transaction has been completed. Such action is prohibited and could result in fines.
d) Card Verification Codes are only printed on the cards, they are not contained in the magnetic strip information and do not appear on sales receipts or statements.

Very useful Visa resources for card-not-present merchants
A “card-not-present” transaction is the bane of most, if not all, merchants. Here are useful risk management resources provided by Visa:

•  Merchant Guide to the Visa Address Verification Service (AVS)–VBS 07.03.01
•  Chargeback Management Guide for Visa Merchants–VBS 05.01.02
•  Visa E-Commerce Merchants’ Guide to Risk Management–VBS 05.02.02
•  CyberSource Advanced Fraud Screen Enhanced by Visa–VBS 03.01.02
•  Protect Your Virtual Storefront–VBS 01.04.01

If you are in need of such publications, feel free to call your friendly merchant services provider and they will be more than happy to assist you. Alternatively you may also ring the Visa Fulfillment Center at 800-847-2311.

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