What is the recommended practice for internet transactions regarding CVV2?

Requiring the CVV2 code for internet transactions is recognized as a best practice in the payment card industry because it adds an important layer of security. The CVV2 code, which is located on the back of a credit card, serves as a verification tool that helps confirm that the person making the transaction has physical possession of the card. This is particularly vital for online transactions where the card is not physically present, making it easier for fraudsters to make unauthorized purchases without having access to the CVV2 code.

By advising merchants to require CVV2 during the transaction process, they can significantly reduce the likelihood of chargebacks and fraudulent transactions. It enhances customer confidence in the security of their transactions and protects the merchant from potential losses associated with unauthorized charges. Additionally, many payment processors and card networks encourage or mandate the use of CVV2 in their fraud prevention guidelines, thereby reinforcing the necessity of its inclusion in online transaction processes.

In this context, making CVV2 optional could potentially expose merchants to higher fraud risks, while relying on manual entry or disregarding it can create inconsistencies and vulnerabilities in transaction processing. Therefore, the recommendation to require CVV2 aligns with industry standards aimed at safeguarding both consumers and merchants in the increasingly digital marketplace.