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CandleFocus Glossary Editor
As credit card fraud continues to increase, credit card companies are turning to validation codes to help combat this issue. A validation code is typically a three or four-letter numerical code printed on the front or back of a credit card. The code is generally referred to as the “Card Verification Value” (CVV). While Visa, MasterCard, Discover, and American Express use different combinations of letters and numbers to represent the CVV, all four use the same concept.
The purpose of the code is to provide an extra layer of security when making an online purchase, as the code is verified with the card-issuing bank to ensure that the card used for the transaction is actually in the possession of the person making the purchase. By checking to make sure the validation code matches the cardholder’s information on file with the bank, the card issuer is able to authenticate the cardholder. When it comes to online purchases, the validation code is meant to provide an extra level of security against unauthorized use of cards as well as to make sure that the person making the purchase is the legitimate cardholder.
Validation codes can also be used to reduce fraud in the physical retail environment. Credit card companies have begun to issue validation codes to retailers that require customers to provide the code with their credit card information and signatures during in-store transactions. This measure helps to ensure that the person presenting the credit card is the same person whose name is on the card and that the card is still in the possession of the rightful cardholder.
Validation codes are just one of several safeguards put in place by credit card companies to reduce the amount of credit card fraud. While security codes are a helpful line of defense against fraud, it is still important for cardholders to remain vigilant about the protection of their personal information. By taking the necessary security precautions, such as regularly monitoring their credit card accounts for suspicious activity and notifying the card company or issuing bank immediately of any suspicious activity or unauthorized purchases, cardholders can ensure their cards remain secure.
The purpose of the code is to provide an extra layer of security when making an online purchase, as the code is verified with the card-issuing bank to ensure that the card used for the transaction is actually in the possession of the person making the purchase. By checking to make sure the validation code matches the cardholder’s information on file with the bank, the card issuer is able to authenticate the cardholder. When it comes to online purchases, the validation code is meant to provide an extra level of security against unauthorized use of cards as well as to make sure that the person making the purchase is the legitimate cardholder.
Validation codes can also be used to reduce fraud in the physical retail environment. Credit card companies have begun to issue validation codes to retailers that require customers to provide the code with their credit card information and signatures during in-store transactions. This measure helps to ensure that the person presenting the credit card is the same person whose name is on the card and that the card is still in the possession of the rightful cardholder.
Validation codes are just one of several safeguards put in place by credit card companies to reduce the amount of credit card fraud. While security codes are a helpful line of defense against fraud, it is still important for cardholders to remain vigilant about the protection of their personal information. By taking the necessary security precautions, such as regularly monitoring their credit card accounts for suspicious activity and notifying the card company or issuing bank immediately of any suspicious activity or unauthorized purchases, cardholders can ensure their cards remain secure.