What does the Card Verification Value Procedure involve for each transaction?

The Card Verification Value (CVV) Procedure primarily involves the use of the CVV2 code, which is a security feature on credit and debit cards designed to reduce fraud during card-not-present transactions. The correct answer pertains to the practice of conditionally including or excluding the CVV2 in authorization requests.

In standard transactions, merchants are generally required to include the CVV2 code in the authorization request sent to the card issuer. This helps the issuer verify that the person using the card has the physical card in their possession, as the CVV2 is not typically stored in a merchant's database. However, depending on the specific transaction type or merchant policies, there might be circumstances where the CVV2 is intentionally excluded from the transaction request. This conditional inclusion can occur in situations where processing systems do not support CVV2 verification or for specific types of transactions.

Understanding this procedure's importance sheds light on how it helps reduce the risk of fraudulent charges. Manual verification of cardholder identity and in-person verification by a bank teller are not standard practices associated with CVV procedures, nor are they involved in the typical electronic authorization processes. Immediate authorization for cash advances relates to a different aspect of transaction processing and does not pertain to the verification of the card