What is the purpose of the CVV code on a Visa card?

The CVV code, or Card Verification Value, on a Visa card serves the primary purpose of validating card information during the authorization process. This three-digit number, located on the back of the card (or the front for some cards), is not stored in the magnetic stripe and is not included in the card number itself.

This design helps enhance security by ensuring that the person attempting to make a transaction not only has the physical card but also knows the CVV code, which decreases the likelihood of fraud in card-not-present transactions, such as online purchases. When a transaction is initiated, the CVV code is sent along with the card number to the payment processor. The processor checks the CVV against the information on file to confirm that it matches. If it does, the transaction is more likely to be legitimate, resulting in an increased level of confidence for merchants and consumers alike in the authorization process.

This validation step is particularly crucial in online and remote payments where physical card presence is absent, making it more vulnerable to unauthorized use. Thus, the CVV code plays a critical role in protecting both cardholders and merchants from potential fraud.