What Is a Card Validation Code?

Definition and Examples of Validation Code

A card validation code is a three- or four-digit number that appears on the front or back of a credit card. This code is designed to enhance your card's security features and help to prevent card-not-present fraud. Card-not-present fraud occurs when someone attempts to process a transaction online using the card account number and expiration date but doesn't physically possess the card.

• Alternate name: Card verification number, card security code, card verification value
• Acronym: CVV, CVV2, CVC, CVC2, CID, CSC

A good example of how a verification code works is when you’re asked to enter the code when you’re making a purchase online. 

How Validation Codes Work

Credit card validation codes act as a security measure to help protect your card information and are generally used for transactions when the physical card is not present. This code is used to identify that the person using the card is in fact the account holder and has access to the card physically. 

Here's an example of how it works. Say you're shopping for shoes online. You find a pair you want to buy at your favorite retailer so you add them to your cart and head to the checkout. After entering your name and address, you enter your card's account number and expiration date. You'll then be prompted to enter your three- or four-digit card validation code. 

If you have a Visa, Mastercard, or Discover card, your validation code is a three-digit number on the back of the card. If you have an American Express card, your CVC is a four-digit number on the front of the card, above your account number. Once you enter your card verification number, you can finish processing the transaction. 

Your card's validation code is linked to your card number and account information. This is how card issuers and payment processors ensure that the person making a purchase is in fact the account holder. Without a valid CVV code, card transactions may be declined. 

Do I Need a Validation Code?

Generally, the answer is yes, you will need a card validation code to make purchases or pay bills online in situations where your card cannot be physically swiped or inserted into a chip reader. If you're unable to provide your card's verification code when prompted by a merchant, the transaction may be declined. 

Now, do you need a validation code when making purchases in a store? Generally, no, since you have the card in your possession to make a purchase at the cash register. Depending on where you're making the purchase, you may be asked for your zip code. At gas stations, for example, you may be asked for both when you use your card to pay at the pump. 

You don't have to do anything specific to get a validation code. If you open a new credit card account, your card issuer will print the number on the front or back of the card, depending on who your issuer is.

So, to get your validation code you simply need to look on the card to find it. Keep in mind that if you need to make a purchase online and don't have the card, you may not be able to finalize the transaction if the merchant specifically requests your validation code.