F.A.Q. About the Security Code CVV

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The security code on credit cards suffers from a severe case of ‘mistaken identity’. Most business owners are under the impression that by entering the security code along with the credit card numbers they will get a lower rate on their processing costs. Wrong.

Let’s get educated.

Q: What is the CVV Number?
A: The CVV Number (“Card Verification Value”) on the back of your credit card or debit card is a 3 digit number on VISA®, MasterCard® and Discover® branded credit and debit cards. On your American Express® branded credit or debit card it is a 4 digit numeric code located on the front of the card. Ok, this we all knew…

Q: What is the purpose of the CVV Number?
A: When processing a credit card transaction in a non swiped manner (phone or online), asking the customer for the CVV Number is another way to verify that the customer has the actual credit card in their hand and is not using a stolen credit card.

Q: If they were able to steal the credit card number, don’t they also have the CVV Number?
A: No. It is far easier to steal a credit card number than to get the CVV Number. While it is common for businesses to save customers credit card numbers on file (for future purchases), it is forbidden to store CVV numbers. So if there were ever a breach and credit card numbers were stolen, the thieves would not have the CVV numbers.

Q: If the CVV number were entered incorrectly, will the transaction be declined?
A: That depends on the business. Each business owner must set their terminal or website with CVV fraud protection filters, whether to allow transactions with the wrong CVV number to go through or not.

Q: Do I get a lower processing rate when I enter the CVV number?
A: No. Nor do you pay a higher rate if you don’t enter the CVV number.

Q: So you mean to say, that the CVV number is only there for fraud protection?

Q: So all those customers that I know and trust yet have been making them crazy for the CVV number every time – was all in vain?

Q: Why did I not know this until now?
I’m sorry, since these emails are educational rather than promotional, I will refrain from answering this question.

Happy Tuesday & Happy Selling!