What is the Importance of the CVV Number on Your Credit Card?
CVV code or Card Verification Value code is a three-digit number introduced in a credit and debit card as a step for advancing security measures while making online payments. It is a preventive initiative adopted by the financial institutions against the increasing number of fraudulent and adulterations cases filed in recent years.
While making any online purchases, the customer will be redirected to a link where he or she has to enter the confidential CVV number. It helps the merchant determine the credibility of the card-holder.
According to the survey conducted by a financial institution, about 44% of cardholders have fallen prey to card payments frauds and forgeries. To safeguard the finances and to eradicate the increasing rate of credit card scam, financial institutions have added CVV as a unique code in the credit cards provided by them to ensure safe monetary transactions.
How CVV works in a credit card?
Also known as card security code, CVV code is a component that is added in a card that helps monitor and record the transaction made through the same. This unique CVV code is engraved over a magnetic stripe that lies horizontally at the back of a credit card. When swiped through a magnetic stripe reader; your transaction made through the card is recorded by your chosen credit card issuer. The data is recorded in a binary format, which is later sent to the card-holder as credit card statements.
CVV code acts efficiently for determining specific fraudulent activities like if the data mentioned in the statement has some disparity with the actual transactions, the CVV influenced stripe reader will define the card as “tampered”.
CVV numbers are routinely asked by the merchants for making online credit card payments. Providing this unique code for proceeding with the transaction is held mandatory. The process is done to ensure that the card detail provided by the payer has the possession of the card.
Tips to keep credit card safe
Given below are some ways adhering to which you can protect your credit card from being hacked.
- Individuals should abide by necessary security measures. Cardholders are advised not to mention or note down their PIN anywhere, especially over the card. If accidentally your card gets stolen, the thief would have access not only to your card but also to your PIN.
- While making online credit card purchases, it is imperative that your credit card information remains undisclosed, and the CVV number is kept safe with you.
- There are specific steps that should be immediately taken in case the credit card is lost or stolen, make sure you report to your concerned credit card issuer. A prompt complaint will help your financial institution to block the card and the account, from where no transactions could be made henceforth.
- Card-holders should keep a record of their credit card statements correctly, in order to keep a track on issues such as added charges and unauthorised payments.
- The account number, PIN and the CVV code should be considered as highly confidential details that should not be made accessible to strangers.
Considering the need for safeguarding the finances of the customers, various financial institutions offer credit cards furnished with security coverage. NBFCs like Bajaj Finserv bring you Bajaj Finserv RBL Bank SuperCard, featuring liability cover on all unauthorised activities concerning the credit account. Apart from this, it has additional features like lucrative reward points, and cash withdrawal with no interest (for up to 50 days) charged, and many such facilities on offer.
CVV is a developed mechanism incorporated especially to eradicate illegal online phishing. Breaching its security code is difficult, as any of its information is not stored in databases, so it is impossible for anyone to use your credit card without a CVV number.