With how easy it is to steal a person’s credit card number, it’s not surprising that online fraudulent credit card payments are higher than they’ve ever been before. While there are many ways that retailers as well as credit card providers have tried to stop this, perhaps one of the most effective ways is also one of the easiest. The fact is that to reduce online payment fraud, CVV filters are being used for processing.
What is a CVV
To understand this it’s important to understand what a CVV is. CVV is short for credit verification value. This may seem unfamiliar to some people but all they need to do is look on the back of a debit card or credit card and they’ll see a three or four digit number imprinted at or around the magnetic strip, or where the person signs their card. This is the CVV and it has become extremely helpful in the reduction of credit card fraud when it comes to payments for online retailers. Many retailers call this the security code.
However, many detractors have said that if it’s easy enough to steal credit card account numbers, it should be easy enough to steal a permanently printed three digit or four digit number on the back of a credit card. While this is true, many card issuers have gone to what is known as a dynamic CVV. The numbers that are permanently printed on the back of the card are what is known as a static CVV. This means that the number will never change and if the number is stolen along with the credit card account number, a person can make fraudulent charges. However, with a dynamic number, this is more difficult.
Dynamic numbers change periodically. Typically, the cardholder is informed either via the mail or through a text message that a new CVV number is being assigned. Unless the people who have stolen the card have access to these communications, it’s unlikely that they will have the proper CVV.
This is important because online retailers are requiring not only account number and expiration date information for the card being used for payment, they’re also requiring a proper CVV number. If the number is correct, then the transaction will go through. However, if the number is incorrect, or if the person who stole the account number doesn’t have this number, the transaction will never go through.
The Results of Increased CVV Filters
Proponents say that this is a simple yet easy way to minimize payment fraud online. Detractors say that it will only be a small hindrance. The fact is that there are some situations, even with dynamic CVV numbers, where fraudulent payments will still be accepted. However, in an effort to reduce online payment fraud CVV filter protocols have been successful in greatly limiting fraudulent payments.
If you’re preparing to open up an e-commerce option to your existing business, or your thinking about starting up a strictly e-commerce business, it’s important to avoid some of the hassles that come from fraudulent online payments.
Implementing a CVV filter, while it doesn’t completely eliminate fraudulent online payments, can greatly reduce this sort of fraudulent payment. This will go a long way towards making your life a bit easier and making for less hassles when accepting and receiving online payments from customers.