What Is CVV2?

When customers make purchases online or over the phone, businesses often ask for the security code printed on the card. Known as a CVV2 code, this three- or four-digit number helps verify that the customer has the physical card in their possession.

But are businesses required to collect CVV2 codes for every card-not-present transaction? Here’s how CVV2 codes work, when to request them, and whether a payment can be processed without one.

What Is CVV2?

A CVV2 is the three- or four-digit security code printed on a credit or debit card. It helps verify that a customer has access to the physical card when making a card-not-present payment.

Card-not-present transactions include online purchases, phone orders, and other payments in which the card information is entered manually rather than read by a payment terminal.

CVV VS CVV2: What’s The Difference?

Card networks use different names for card security codes:

• CVV or CVV2: Commonly used by Visa
• CVC or CVC2: Used by Mastercard
• CID: Used by American Express and Discover

These terms generally refer to the security code customers enter when making an online or manually keyed payment.

Technically, the original CVV is encoded in the card’s magnetic stripe and is transmitted automatically when the card is swiped. CVV2 refers to the printed security code used for card-not-present transactions.

For most Visa, Mastercard, and Discover cards, the code is a three-digit number printed on the back. American Express cards generally use a four-digit code printed on the front.

Why Do Online Shoppers Need A CVV2 Code?

Merchants commonly request a CVV2 code during online, phone, and other card-not-present transactions to help verify that the customer has access to the physical card.

The card issuer compares the code entered by the customer with the code associated with the card and returns a match result to the merchant. A matching CVV2 can help identify transactions made with stolen card numbers, since the security code may not have been obtained along with the other card details.

Collecting CVV2 codes can help merchants reduce card-not-present fraud and the costs associated with fraudulent transactions and chargebacks. However, CVV2 verification is only one layer of security and does not guarantee that a transaction is legitimate.

Can Customers Pay Without Entering A CVV2 Code?

Customers may sometimes complete a purchase without entering their CVV2 code for every transaction. This commonly happens when they use a digital wallet, saved payment method, or recurring billing arrangement.

Payment options that may not require customers to reenter a CVV2 include:

• Digital wallets such as PayPal, Apple Pay, and Google Pay
• Click to Pay
• Saved cards or one-click checkout
• Subscription and recurring payments

These methods use saved credentials, tokenization, account authentication, or other security measures to process the payment without requiring the customer to retrieve the physical card each time. For example, Click to Pay lets returning customers access saved cards during checkout instead of manually entering their card details.

Offering streamlined checkout options can make purchasing more convenient and may reduce cart abandonment. However, whether a CVV2 is requested depends on the payment provider, card issuer, transaction type, and merchant settings.

Final Thoughts On CVV2 Codes

CVV2 verification adds an important layer of protection to online, phone, and other card-not-present transactions. While it can help identify suspicious payments and reduce fraud risk, it should be used alongside other security tools, such as address verification, fraud monitoring, and customer authentication.

Choose a reputable payment processor that supports secure, PCI-compliant payment collection, and make sure your business completes any required PCI compliance steps. Merchants must not store CVV2 codes after a transaction has been authorized, even when the information is encrypted.

Need a secure way to accept online payments? Compare our top online payment processors to find the best option for your small business.

FAQs: What Is CVV2?